Blue Sky Alliance Fund

Blue Sky Alliance Fund

Investment Strategy

Blue Sky Investment Science Asset Management Pty Ltd ABN 79 122 617 083 (the ‘Investment Manager’) is the Investment Manager of the Blue Sky Alliance Fund ARSN 140 253 685.  The Investment Manager has developed a suite of products with a range of return profiles that are designed to help investors meet their particular investment goals with a particular focus on protecting portfolios in times of crisis. This provides investors with the flexibility to select the product that is best suited to their individual circumstances.

Using historical volatility data of previous investment returns, the Investment Manager is able to estimate the risk of each asset in each Portfolio. The Investment Manager is then able to construct a portfolio to fit the volatility target by blending different investment assets, financial instruments and strategies to achieve the investment objectives of the Absolute Return, Real Return and Dynamic Macro Portfolios.

The Investment Manager is able to select the investments and instruments that it considers will maximise the return of the Portfolio, but must do so within the constraints of each Portfolio. This allows the Investment Manager to design a more efficient portfolio in terms of risk and return than may be achieved if the Investment Manager used more vanilla investment strategies within tighter constraints.

The benefit arises because the Investment Manager is able to select only those investments that are anticipated to be strong performers and is able to structure a more diversified mix of investments.

Investment Objectives

The investment objective of each of the classes of units in the Fund is as follows:

  • Absolute Return seeks to generate returns of RBA cash plus 2-3% per annum over a business cycle. Its diversified portfolio is designed to outperform fixed income dominated conservative funds with a similar level of volatility of approximately 4% per annum.
  • Real Return seeks to generate returns of CPI plus 3-5% per annum over a business cycle.   Its diversified portfolio is designed to outperform equity dominated growth funds which have a similar level of volatility of approximately 9% per annum.
  • Dynamic Macro seeks to generate returns of RBA cash plus 6-10% per annum over a business cycle with expected portfolio volatility of approximately 16% per annum.

Typically, the higher the volatility, the higher the risk associated with that investment.

Please note that the Fund objectives are not forecasts and that returns are not guaranteed.

Should you have any queries, please contact us on info@oneinvestment.com.au or call us on (02) 8277 0000.