First Guardian Capital (FG): is a specialist boutique investment management company with expertise in Australian and International equities while adhering to Ethical Principles.FG has a flexible, all weather investment style, not dependent on favourable market conditions to consistently add value over time. Adopting a matrix approach to Fundamental Macro/Micro, Technical and Quantitative approach helps Falcon gauge the state of the investment arena, thereby allowing a deeper understanding of the forces driving the relative performance of equities under different market conditions.
Opportunity to tap into: Developed market growth is likely to be muted in the foreseeable future, while Pan Asian domestic demand and economic growth will increasingly dominate global consumption. Australian investors are overweight domestic equities and significantly underweight Asian exposure is well positioned to benefit from the Pan Asian growth story. FG is also well integrated in screening for Ethical investments via its alliance with MSCI ESG.
Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon. The three main asset classes - equities, fixed-income, and cash and equivalents.
Each asset classes have different level of risk and return, which is the main criteria by which investors generally choose what they invest in, so each will behave differently over time. By investing in more than one asset class you can diversify your investments and reduce your risk.
Asset Allocation Description:
1: Australian Equities:
May be suitable for investors seeking exposure to a diversified portfolio of Australian Shares. The strategy may suit longer-term investors who require capital growth, with limited requirement for income, who are comfortable with higher levels of volatility. Returns are expected to vary significantly year to year.
The investment option will provide exposure to a portfolio of Australian Equities, designed to provide long- term capital growth. Our multi-style approach is focused on optimising investment performance of the portfolio, by adjusting allocations to sectors and securities and asset classes that we believe will perform either strongly or poorly in current market conditions, and into the future.
The Fund aims to achieve a return (before tax and expenses) above that of the S&P/ASX 300 Accumulation Index. It aims to provide long-term capital growth.
The fund is a high-risk option, as defined by the Standard Risk Measure. This means that based on its investment mix, the Fund may deliver a negative return, in up to 6 out of every 20 years.
The minimum suggested investment time frame for this strategy is 5 or more years.
2: Global Equities
May be suitable for investors seeking exposure to a diversified portfolio of global equities. The strategy may suit longer-term investors who require capital growth, with limited requirement for income, who are comfortable with higher levels of volatility.
The investment option will provide exposure to a portfolio of global equities, designed to provide long- term capital growth. Our multi-style approach is focused on optimising investment performance of the portfolio, by adjusting allocations to sectors and securities and asset classes that we believe will perform either strongly or poorly in current market conditions, and into the future.
For members who place the security of their assets over returns. This option invests solely in short-term, low risk money market securities and is expected to produce returns that are moderately higher than inflation.
The option invests in a portfolio of Australian cash, designed to provide a very high level of capital security.
To maintain invested capital, and provide a positive return.
An asset class is a group of securities that exhibits similar characteristics, behaves similarly in the marketplace and is subject to the same laws and regulations. The three main asset classes are equities, or stocks; fixed income, or bonds; and cash equivalents, or money market instruments. Some investment professionals add real estate, commodities, and increasingly, cryptocurrencies such as Bitcoin, to the asset class mix.
The main asset classes that people refer to are cash, property and shares. So, understanding each one of the, will help you to decide which types of investments suit your needs.
Investment Style: can be described as a fund manager’s investment philosophy and methods followed in relation to the companies a fund manager chooses to invest in, and the process by which those investment decisions are made.
Successful managers are generally committed to a particular investment style. Not only does it provide a set of disciplines which dictate the selection of companies, but it also allows them to develop and refine a specific procedure which can be easily used by portfolio managers.
Thoughts differ as to how many different styles there are, but we believe there are two main styles – ‘Value’ and ‘Growth’. However, it is important to mention another category that aims to eliminate or style bias – these managers are called Core or ‘Style Neutral’.
Investment option depends largely on the type of investor you are. There are three key considerations questions in choosing the right investment for you:
1. How long you’re investing for (timeframe)?
For how long you want to invest your super and keep your savings growing in super. Starting to contribute to your Super at early stage of your life, the longer your investment timeframe will be till you retire.
2. What type of return you looking for?
Choosing the right investment option can impact how much your super savings grow.
You can choose from three different super investment options:
3. What is your level of comfort with risk?
Different type of assets has different level of risk, so diversify your investment to reduce the level of risk. Risk level depends on different factors:
Islamic Investment Investment that is consistent with the principles of Islamic law (Shariah) and guided by Islamic believes, which differs from the conventional approach to investments. Islamic Investing work on a philosophy of prohibiting investment considered immoral and promoting greater social justice by sharing risk and reward.
All Australian Islamic Super investment decisions are based on Islamic Principles set by Dar Al Istithmar. Dar Al Istithmar offers globally financial consultancy services to the Islamic financial services community.
1: Australian Islamic Super actively screen investment opportunities based on two criteria.
Business activities: Follow Sharia investment principles and screen out investment in companies that are directly active in, or derive more than 5% of their revenues from such business activities as alcohol, tobacco, pork related products, deforestation, conventional financial services, defence/weapons, gambling, and adult entertainment.
Financial ratios derived from total assets: Australian Islamic Investment screen out investment in companies that have excessive leverage or high levels of income interest. Australian Islamic Super uses three financial ratios to screen for such companies:
(1) Total debt over total assets (Less than 30%).
(2) The sum of a company’s cash and interest-bearing securities over total assets (liquidity of tangible asset must be above of 51%).
(3) The sum of a company’s accounts receivables and cash over total assets.
2: Australian Islamic Super uses Australian Centre for Islamic Finance (AUSCIF) as its Shariah Advisory Boards. The Australian Centre for Islamic Finance (AUSCIF) is the pre-eminent Australian organisation that facilitate knowledge transfer and thought leadership within the Islamic financial sector.
3: Australian Islamic Super’s fund manager (FGC) is obligated to determine what percentage of a company’s profit is derived from interest-bearing accounts and then giving it to charities in form of Zakat, so with Australian Islamic Super we strive to manage your super in a Sharia compliant manner.
4: Australian Islamic Super uses The MSCI World Islamic screener which reflects Sharia investment principles. MSCI’s Islamic index conduct their own compliance screening research under the guidance of a sharia board or committee, so any stock included in MSCI is a fair choice for investment.
First Guardian Capital is the Fund manager of the Australian Islamic Super. First Guardian Capital works closely with investors and businesses alike, that are looking to achieve sustainable growth in the Asia Pacific region in order to enhance and maximise long-term value and wealth creation. First Guardian Capital investment team have consistently based their investment decisions on thorough research and sound risk management, assuming a long-term view, focusing on achieving responsible capital growth.
All Australian Islamic Super funds are managed in accordance with Islamic investment principles.
Australian Islamic Super, has a wide-ranging regulatory framework in place to safe guard your Super.
Australian Islamic Super does not physically hold any of your assets. It is held in your name under the custodial services provided by HSBC Amanah. Furthermore, the trustee is Diversa Trustee Limited, who act as the responsible entity for the regulatory, compliance and operation of the fund.
Yes – As required by law, the Trustee of the Fund, Diversa Trustees Limited, holds both an Australian Financial Services Licence – AFSL: 235153 (issued by ASIC) and a Registrable Superannuation Entity Licence RSE: L0000635.
Your Username is you member number. If you can’t remember your member number please contact our Member Care team for assistance on + 61 3 9999 1570.
If you do know your username, and have only forgotten your password, simply input your username in the member login portal and click “Forgotten Password” and follow the instructions where you will be emailed a new password.
There are a myriad of reasons to pursue ethical investing. The following is a non-exhaustive list of reasons behind why this innovative
method of investing is gaining popularity across the globe:
This is a critically important dimension, when one looks at
what companies can and arguably need to do towards the
betterment of society. Take climate change for example,
where corporations are in the position to innovate, such as
creating and championing driverless electric transportation /
other related aspects of green infrastructure, or committing
on the price of carbon that transcends borders.
In short, public companies have a key role to play, and need to
be encouraged to do so by investors who both choose to fund
them, and make clear what they expect.
At minimum, companies need to understand that there is a
financial penalty for getting environmental and social issues
wrong and it helps as well if there is a reward for making
Long term rewards over
short term trends
The global momentum around responsible investment has
partly been driven by concerns about the detrimental impact
of short-termism and harmful corporate behaviours on
company performance, investment returns and market
behaviour. Short-termism and harmful corporate behaviours
lead to negative consequences, harming growth and share
price. These can include sector emissions constraints,
community opposition to projects, increased insurance
premiums, decreased access to capital markets, damage to
reputation, and litigation threats.
On the other hand, ethical corporations are committed to end
unsustainable behaviours and tackle future challenges
including environmental and social issues, thereby creating
a good reputation which hands a number of advantages to a
business. It is attractive to customers, draws in the best staff,
and enhances trust with similarly ethical trading partners.
These positive aspects reduce costs and increase business
opportunities, opening new revenue streams from fresh
environmental technologies and providing access to capital
markets on better terms. Over time, the market will reward
these firms for their originality, efficiency, and productivity.
Financial rewards and
Ethical investing does not equate to foregoing returns. In
2015, Index firm MSCI has found that share portfolios with
more exposure to socially responsible companies, based on its
own environmental, social and governance criteria, performed
better than the benchmark overall over an eight-year period.
According to Prof. Ioannis Ioannou, an assistant professor
from London Business School, sustainable companies tend
to have a more dedicated investor base who trade less often,
compared to less sustainable companies that attract more
transient investors who trade more often. This implies that
ethical investments have lower risk of excessive price volatility
than their non-ethical peers – Good news for investors seeking
stability in their investments.
Making a contribution
People who choose to follow an ethical investing strategy let
their feelings, about how workers should be treated, how the
natural environment should be cared for, how corporations
should treat their shareholders and so on drive their
investment decisions. One of the benefits of this style of
investing, is the potential for good feelings when a company,
whose actions you support, performs well financially, bringing
good returns to your portfolio, and benefits to all of its
Benefiting from the effects
of everyday choices
Ethical investing can support your belief framework. You can
invest in ethical companies and sectors as a way of supporting
and enacting this framework without having to drastically
change your living standards.
1. Get your finances in order: Starting investing without first examine your finances is like jumping into the deep end of the pool without knowing how to swim. On top of the cost of living, payments to outstanding credit card balances and loans can eat into the amount of money left to invest.
2. Learn the basics: you need to understand investment basic terminology, so are better equipped to make informed decisions. Investing can be harmful and cause the loss of money or savings if done unwisely.
3. Set goals (targets): Once you have established your investing budget and have learned the basics, it’s time to set your investing goal. Forming a goal helps determine the best investment vehicle to fit that particular goal.
4. Check your investment strategy options: choosing an investment strategy will help you to build your wealth faster. starting a regular investment plan, investing for growth and re-investing distributions are few of the examples.
5. Know your risk tolerance: before deciding on which investments are right for you, you need to know how much risk you are willing to take.
6. Learn the costs: It is equally important to learn the costs of investing, as certain costs can cut into your investment returns. Choose the right investment strategy. passive investing strategies tend to have lower fees than active investing strategies such as trading stocks.
7. Diversify: To improve your chance of a better return you have to accept more risk. Spreading your money across different investment types and sectors whose prices don’t necessarily move in the same direction.
8.Avoid Investment in high risk products unless you understand their risks and you happy to take them.
Lifecycle Super Lifecycle Super is designed for investors who would like us to automatically adjust the allocation between growth and defensive asset classes to become more conservative over time. If you choose Lifecycle Super, we will invest your money based on the decade in which you were born. That way, as you get closer to retirement, we will gradually reduce your exposure to higher risk assets. This transition over time is commonly known as a glide path. The exposure to a broad range of asset classes is designed to diversify investment risk.
Investor Choice Super:
You can choose to take an active role in your investment decisions. Our Investor Choice options allow you to choose your investments from a range of options.
You can switch between options at any time.
First Guardian – Australian Equities
First Guardian – International Equities
First Guardian – Cash & physical gold
First Guardian – Growth
First Guardian – Balanced
First Guardian – Conservative
You have the option to set your own, personal investment strategy by choosing which investment option or combination of options you would like to invest your super in. Australian Islamic Super offers members a choice of seven different investment options, made up of our default, Lifecycle option, as well as three
diversified options and three asset class options.
Lifecycle Super – Glide Path Option:
Investor Choice Diversified Options:
Investor Choice: Asset Class Options
Cash & physical gold
Returns to each of the above investment strategies will be linked to the performance of the share market and will be measured against universal benchmarks. Returns are vulnerable and will be subject to the usual market fluctuations. This portfolio allows investors to build wealth over the long-term and somewhat limits investment risk through diversification within asset classes.
Lifecycle Super is designed for investors who would like us to automatically adjust the allocation between growth and defensive asset classes to become more conservative over time.
If you choose Lifecycle Super, we will invest your money based on the decade in which you were born. These portfolios seek a higher rate of return during the early to mid-stages of your working life, and then transition to a more conservative and income focused investment later in your life, or as you approach retirement. This allocation weighting process is commonly referred to as a glide path.
Lifecycle, and Diversified portfolios invest across a range of asset classes. They cover the following:
Australian and international shares
Australian and international
Global infrastructure securities
Cash and physical gold
Below is an example of how a glide path works in practice:
First Guardian recognises that an extended period of investing in growth assets can have a significant, positive benefit on your account balance at retirement.
Glide Path Investing – Our Approach
Once an account holder selects their strategy, they will receive regular updates from First Guardian, advising of how their investment mix has changed in line with the glide path. First Guardian will also make active asset allocation decisions, within allowed ranges, to position each portfolio appropriately for investment conditions globally at that time.
We use an active asset allocation process in managing multi-sector options to increase or decrease your exposure to relevant asset classes within permitted ranges. This process is designed to optimise your investment performance by adjusting allocations to markets and asset classes, which we believe will
perform strongly or poorly in the future.