Asset Class Return Forecasts Update
The long term forecast return and volatility assumptions for use in XPLAN have been updated as approved by the Investment Committee. XPLAN is in the process of being updated.
| # | XPLAN Class Name | Growth | Gross Income | Standard Deviation | Franked Income |
| 1 | Domestic Equity | 2.90% | 3.80% | 18.70% | 67.90% |
| 2 | International Equity | 2.80% | 2.80% | 17.20% | 0.00% |
| 3 | Domestic Property (AREITS) | -0.20% | 6.30% | 15.00% | 0.00% |
| 4 | International Property (GREITS) | 1.30% | 3.80% | 17.30% | 0.00% |
| 5 | Domestic Fixed Interest | -1.00% | 2.70% | 4.10% | 0.00% |
| 6 | International Fixed Interest | -1.50% | 2.50% | 6.10% | 0.00% |
| 7 | Domestic Cash | 0.00% | 1.60% | 1.40% | 0.00% |
| 8 | International Cash | 0.00% | 0.00% | 0.00% | 0.00% |
| 9 | Direct Property (Commercial) | 0.80% | 5.70% | 11.20% | 0.00% |
| 10 | Infrastructure | 0.70% | 4.60% | 14.80% | 0.00% |
| 11 | Alternatives | 0.00% | 5.00% | 7.60% | 0.00% |
The updated forecasts are based on the Mercer 10-year market aware Capital Market Assumptions. The return forecasts take into account asset class returns but make no allowance for value-added due to active fund management within the asset classes. The inflation forecast has been increased from 1.90% p.a. to 2.10% p.a.
The ‘investment strategies for different risk profiles’ document has also been updated. The current version is available on the adviser portal under Compliance > Advice Documents > Risk Profiling.
If you have any questions, please contact us at investmentservices@madisonfg.com.au.
In this Edition
| · A message from Jaime
· Asset Class Return Forecasts Update · WealthPortal Investment Menu Change · The View |
· New Financial Services Reform Bill – update | · Fee Consent Matrix for Fund Providers |
Asset Class Return Forecasts Update
The long term forecast return and volatility assumptions for use in XPLAN have been updated as approved by the Investment Committee. XPLAN is in the process of being updated.
| # | XPLAN Class Name | Growth | Gross Income | Standard Deviation | Franked Income |
| 1 | Domestic Equity | 2.90% | 3.80% | 18.70% | 67.90% |
| 2 | International Equity | 2.80% | 2.80% | 17.20% | 0.00% |
| 3 | Domestic Property (AREITS) | -0.20% | 6.30% | 15.00% | 0.00% |
| 4 | International Property (GREITS) | 1.30% | 3.80% | 17.30% | 0.00% |
| 5 | Domestic Fixed Interest | -1.00% | 2.70% | 4.10% | 0.00% |
| 6 | International Fixed Interest | -1.50% | 2.50% | 6.10% | 0.00% |
| 7 | Domestic Cash | 0.00% | 1.60% | 1.40% | 0.00% |
| 8 | International Cash | 0.00% | 0.00% | 0.00% | 0.00% |
| 9 | Direct Property (Commercial) | 0.80% | 5.70% | 11.20% | 0.00% |
| 10 | Infrastructure | 0.70% | 4.60% | 14.80% | 0.00% |
| 11 | Alternatives | 0.00% | 5.00% | 7.60% | 0.00% |
The updated forecasts are based on the Mercer 10-year market aware Capital Market Assumptions. The return forecasts take into account asset class returns but make no allowance for value-added due to active fund management within the asset classes. The inflation forecast has been increased from 1.90% p.a. to 2.10% p.a.
The ‘investment strategies for different risk profiles’ document has also been updated. The current version is available on the adviser portal under Compliance > Advice Documents > Risk Profiling.
If you have any questions, please contact us at investmentservices@madisonfg.com.au.
In this Edition
| · A message from Jaime
· Asset Class Return Forecasts Update · WealthPortal Investment Menu Change · The View |
· New Financial Services Reform Bill – update | · Fee Consent Matrix for Fund Providers |