Back to Model Portfolios

View Indexes – Australian Equities

The range of Index Model Portfolios available through the Linear Managed Accounts provide convenient and passive exposure to Australian Equities. As the Investment Manager, Linear rebalances all Index Model Portfolios quarterly, or as advised by Standard and Poor’s. Standard and Poor’s are the supplier of the Multi Sector and the Global Industry Classification Standard (GICS) Indices.

Index Replication

Index Model Portfolios available under this PDS will attempt to partially or fully replicate the underlying Index. Index replication refers to the manner in which Index Model Portfolios are constructed and maintained. Full replication means that all securities in the index are purchased in line with the constituent weightings. Partial replication means that a sample of the securities from the Index will be purchased. The S&P/ASX 200 Industrials (Sector) Index is comprised of over 32 securities, however in order to reduce transaction costs, only the 15 largest securities will be purchased. Linear offers complete replication on all Indices including those listed as only partial. This is provided on request and subject to minimum investment sizes.

Customisations

All Index Model Portfolios can be customised to include or exclude certain securities or to ‘lock’ tax parcels.
Information is provided in the PDS – in particular the Transacting and Taxation sections starting on pages 10 and 31 respectively.

Tracking Error

The performance of the Index Model Portfolios may differ from the underlying benchmark due to partial replication, customisation, ‘locking’ of tax parcels, the charging of fees on the Model Portfolio(s) or the reinvestment of dividends.

About S&P/ASX Indices

The S&P/ASX Australian Indices are closely aligned with Standard & Poor’s global suite of Indices, and are recognised internationally as Australia’s principal investable equity Indices. Standard & Poor’s global Indices are liquid, tradable and easily replicable, allowing extensive use by institutional Investment Managers, mutual fund managers and professional advisers. With over A$200 billion managed and benchmarked to the S&P/ASX 200, the index is regarded as Australia’s equity benchmark.

The S&P/ASX Indices are real-time, market capitalisation-weighted Indices that include the largest and most liquid stocks in the Australian market. The S&P/ASX 200 covers approximately 80% of the Australian equity market by capitalisation, with a constituency that is highly liquid and tradable. Such characteristics ensure that the S&P/ASX 200 is representative of the Australian market while maintaining a limited number of eligible securities.

About GICS

The Global Industry Classification Standard (GICS) was developed by Morgan Stanley Capital International Inc. (MSCI), an independent provider of global Indices and benchmark related products and services, and Standard & Poor’s® (S&P®), an independent international financial data and investment services company and a leading provider of global equity Indices. The GICS classifications aim to enhance the investment research and asset management process for financial professionals worldwide. It is the result of numerous discussions with asset owners, portfolio managers, and investment analysts around the world and is designed to respond to the global financial community’s need for an accurate, complete, and standard industry definition.

The GICS structure consists of 10 sectors, 24 industry groups, 67 industries and 147 sub-industries. The GICS methodology has been widely accepted as an industry analysis framework for investment research, portfolio management and asset allocation. Its universal approach to industries worldwide has contributed to transparency and efficiency in the investment process. In addition, the current trend towards sector-based investing has also greatly benefited from.

Active Managers

The following pages provide details regarding the Investment Managers that provide actively managed Model Portfolios offered under this PDS. The Investment Managers either construct or provide advice to Linear Asset Management on the construction of the Model Portfolios using their experience and expertise and as such the exact makeup of any Model Portfolio is considered to be the Investment Manager’s intellectual property. By signing the Application Form for your investment in the Linear Managed Accounts, you hereby agree that the individual securities making up the Model Portfolios remains the intellectual property of the Investment Managers and that it will be kept confidential between you, your Representative (if applicable) and your financial adviser and will not be disclosed to any other person.

Back to Model Portfolios