Investment Strategy
Introduction
Our Investment Strategy empowers the Investment Manager to pursue a positive return on the Company’s funds. Through disciplined asset allocation, rigorous benchmarking, and proactive risk management, the strategy ensures diverse sector investments. With defined allocations in domestic, international, and unlisted equities, it supports dynamic trading and prudent cash handling to optimize performance.
The Investment Strategy guides the Investment Manager of the Company in its investment activities towards achieving a positive rate of return for its investment funds.
This strategy addresses issues of:
- Asset allocation
- Benchmarking performance standards
- Risk assessments and risk management
- Reporting on investment performance
- Sector diversification
The strategy calls for the following asset allocation, and sets the following performance benchmarks.
| Asset Class | Target Allocation | Benchmark | |
| Domestic Equities | 40% | KSi home index | |
| International Equities: | 60% | ||
|
– Australia – World |
40% 20% |
S&P ASX200 Accumulation Index MSCI World Index Ex Australia |
KFM will trade on opportunities that are available in the domestic and international equities sectors.
Cash will normally only be held for operational purposes and in transit when seeking investment opportunities.
A maximum of 20% of the investment portfolio may be invested in Unlisted Equities when opportunities arise.