Initial asset allocation

An extremely diversified portfolio can be achieved quickly by concentrating almost entirely on Exchange Traded Funds (ETFs) and similar investments, and this will be the initial strategy of the Global Reserve Portfolio. Assets will be divided between Australian, UK, and US markets in order to further diversify any residual country-specific effects, and to improve currency availability.

The weighted average expense ratio for ETFs included in the initial Global Reserve Portfolio is approximately 0.33%. ETF providers have the scale and expertise to efficiently manage large portfolios across the various asset classes, greatly simplifying the task of assembling and valuing a highly diversified international portfolio. The total management expense ratio for the GRP, including ETF fees, is expected to be 0.70%.

The following list is indicative of assets likely to be included in the portfolio:

 

Global equity

ASX: iShares Edge MSCI World Multifactor ETF – WDMF

ASX: SPDR MSCI World Quality Mix Fund – QMIX

LSE: Vanguard FTSE All-World UCITS ETF – VWRL

LSE: SPDR MSCI ACWI UCITS ETF (GBP) – ACWI

NYSE: Vanguard Total World Stock – VT

NYSE: iShares S&P Global 100 Index – IOO

Global property

ASX: AMP Capital Global Property Securities Fund – RENT

ASX: SPDR Dow Jones Global Real Estate Fund – DJRE

LSE: SPDR Dow Jones Global Real Estate UCITS ETF (GBP) – GBRE

LSE: iShares Developed Markets Property Yield UCITS ETF (GBP) – DPYG

NYSE: iShares Dow Jones US Real Estate – IYR

NYSE: Vanguard Global ex-US Real Estate – VNQI

Global money

ASX: iShares Core Global Corporate Bond (Hedged) ETF – IHCB

ASX: Vanguard Global Aggregate Bond Index (Hedged) ETF – VBND

LSE: iShares Global Govt Bond UCITS ETF (GBP) – IGLH

LSE: Vanguard Global Bond Index Fund – Hedged Accumulation (GBP)

NYSE: iShares iBoxx $ Invest Grade Corp Bond ETF – LQD

NYSE: iShares JPMorgan USD Emerging Markets Bond ETF – EMB

Gold

ASX: Perth Mint Gold – PMGOLD

LSE: ETFS Physical Gold ETF (GBP) – PHGP

NYSE: SPDR Gold Shares – GLD

 

Global Dollar 2