Smart Investment Strategies

The last two years have seen an extraordinary recovery in both Australian and global investment markets. This growth on the back of the early stages of a global recovery and a falling Australian dollar, has meant that many portfolios have benefited from significant capital growth.

The converse is that many investors have remained very conservative since the GFC and have missed the equity market rebound.

At present there are a number of positive factors driving equity markets, but also a number of reasons for genuine concern and caution.

Reviewing asset allocations and the risk that comes with any potential sharemarket correction is important for everyone, but particularly for those within sight of, or already in, retirement.

Where to from here?

The biggest question for all investors in the current market is where to from here? We have been giving this question considerable thought over the last six months, as markets have moved higher.

We believe continued exposure to growth assets is an important objective. However, we also need to be cognizant of the need to preserve capital and lock in some of the returns that have been achieved over the last few years.

We have therefore, been reviewing possible solutions to these seemingly conflicting objectives, which will:

 a)      Allow investors to retain or obtain equity market exposures, in order to benefit from any further equity market upside.

 b)      Limit the risk of capital loss within portfolios should equity markets suffer a material downturn.

Summary of Strategy:

Under the proposed strategy we would reduce your capital at risk. Concurrently, a small proportion of cash from either redeemed equity holdings or cash deposits would be used to gain market exposure by investing in Instreet Masti. i.e. equity market exposure is replaced or established through the Masti investment. This enables investors to hold the majority of capital in defensive assets, (cash, Term Deposit, Property, etc). Importantly, in the event of a material stock market fall, an investor can walk away from the Masti investment without penalty, ­­­­­­thereby mitigating the risk of significant capital loss.

The aim of the strategy is to: protect downside risk to your capital, yet allow you to benefit from continued equity market growth. That is, establish an effective win/win portfolio position.

Summary

This investment is ideal for investors wanting to place a larger allocation of their portfolio to defensive assets such as bonds and cash yet wanting to maintain exposure to the potential upside of the Australian and Pan European share markets over the next few years.  With our domestic market currently trading around the 5,100 point mark and a supressed European stock market improving, we feel there is significant merit in this strategy.

We will be in contact with you shortly to discuss this strategy in detail and please do not hesitate to contact us in the meantime should you be seeking more urgent preservation of your wealth.

Important Information

Purpose of Document:  The purpose of this Document is to provide indicative commercial terms only.   The Documents commercial results are based on assumptions that may not be realistic.  They are indicative only.  Markets and market assumptions can change from the time and the commencement date of the Instreet Masti DPA product.  Due care and attention have been used in the preparation of this document. However, actual results may vary and any variation may be materially positive or negative.

Document: This Document has been prepared by Instreet Investment Australia Limited ABN 24 622 827 589 (Instreet), a corporate authorised representative of AFSL 434776, and is current as at 12 August 2021. 

Issuer and PDS: The Instreet Masti product is issued by Instreet Structured Investment Pty Ltd ACN 140 407 558 and the issue is arranged by Instreet. Instreet Masti is offered in a product disclosure (PDS) or Information Memorandum (IM). The relevant PDS or IM is available from Level 11, 2 Bulletin Place, Sydney, at the website www.instreet.com.au or by phoning 1300 954 678. In deciding whether to acquire or continue to hold and investment investors must first obtain the PDS and IM and carefully consider its contents.

General advice warning: The information contained in this Document is general in nature only. It has been prepared without taking account any potential investors’ personal financial situation, objectives or needs and the appropriateness of this information needs to be considered in that context. Advisers must form their own views on whether the Instreet Masti is appropriate after considering their clients’ objectives, financial situation and personal needs. We recommend you seek your own legal and taxation advice. The information may be based on assumptions or market conditions and may change without notice. This may impact the accuracy of the information. In no circumstances is the information in this Website to be used by, or presented to, a person for the purposes of making a decision about a financial product or class of products.

However, actual results will vary and any variation may be materially positive or negative.

No responsibility or liability is accepted by Instreet or any third party who has contributed to this document for any of the information contained herein or for any action taken by you or any of your officers, employees, agents or associates.

Past performance: Past performance is not a reliable indicator of future performance.