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Changes to the Multi-Asset portfolios - January 2017


  • In our MLC Index Plus portfolios we've changed the benchmark asset allocation, including making new allocations to a Simple Real Return Strategy within alternatives and to a derivatives capability.
  • In our multi-asset portfolios (MLC Index Plus, MLC Horizon and MLC Inflation Plus) we've widened the asset allocation ranges.

Why have we made changes to MLC Index Plus?

The Simple Real Return Strategy is managed by MLC's Capital Markets Research team (CMR). It's a cost-effective strategy that aims to provide risk-controlled above-inflation returns using a similar investment approach to the MLC Inflation Plus portfolios. CMR believes the strategy should help to generate higher performance for the level of risk they take in the MLC Index Plus portfolios and smooth the portfolios' returns.

The allocation to the derivatives capability means we'll be able to use derivatives in the MLC Index Plus portfolios to help manage risk and implement investment insights more efficiently and cost-effectively.