INVESTING FOR A TARGET RETURN

Target Earnings Investing

A multi-strategy approach allows a fund to be more flexible and achieve its income objectives.

Often described as “unconstrained by benchmarks” or “geographic” parameters, such an approach would aim for example to earn a cash rate plus X%.

Such an “absolute return investment strategy” with an income focus can set a fund apart from its peers.

Diversifying risk by investing across a wide range of income sources is often a successful formula across volatile market conditions.

Managed Volatility

An example objective could be “the fund is targeting to achieve less than half the volatility of an equivalent investment in global equities over any three-year period”.  The fund could even be built around an investment time-frame of more than five years.

A fund such as this could aim to help investors diversify portfolios with an approach that targets specific levels of income with lower correlation to equities, bonds and other traditional asset classes.

To generate income the fund could, for example, invest in equities and REITs for dividend income or higher-yielding bonds for coupon payments.

It might use opportunistic strategies identifying events created by the actions of other market participants, such as over reaction to short-term events.

Or adopt risk-reducing strategies seeking to generate income by taking a geographic spread of fixed income investments outside of main markets of the US and Europe.

The risks of an allocation to credit or to fixed income, in general, will come from increased interest rate risk or duration risk.

WHY US?

  • Members of Chartered Accountants ANZ and Financial Advisors
  • 30+ years in financial services, commercial and public practice
  • Licensed for Taxation, Audit and Authorised to provide Financial Advice
  • Authorised to provide Personal Financial Advice with appropriate taxation advice and guidance
  • Extensive experience with large and small business, family trusts, partnerships, SMSF’s, deceased estates and business restructuring
  • Specialise in self-managed super funds and provide accounting & tax, financial advice and audit services
  • Asset Management and Investment Advice
  • Personal Risk Insurance

  • Deposit Products
  • Managed Investments including Unit Trusts, Investment Bonds, Direct Shares, Property Trusts, Growth Funds, Balanced Funds, Indexed Funds and Cash Management Accounts
  • Share Market Investments
  • Tax Effective Investments
  • Superannuation, including Allocated Pensions, Rollovers, Personal Superannuation, Company Superannuation and Self Managed Superannuation Funds
  • Retirement Planning including aged care and estate planning
  • Life Insurance Products, including Annuities, Term Insurance, Income Protection, Trauma and Total and Permanent Disability Insurance
  • Investment Bonds
Get In Touch

North Financial Planning for tax-effective investment strategies

Paying taxes is an important legal requirement but by investing tax efficiently you can aim to make the most of your available tax allowances and incentives. Speak to us how.
Get In Touch