The Pentacle funds are designed to achieve a diversified exposure across the retail, office and industrial sectors, with a small and limited allocation to the special opportunity and development sectors for diversification and return enhancement. The funds' investments are primarily unlisted vehicles managed by the 'core' specialist managers listed below although the Manager has scope to invest in listed property trusts to enhance liquidity and to ensure that the funds are exposed to property assets at all times.
| Asset Allocation | Range | Neutral | Core Managers | Other Managers |
| Retail property | 30 - 60% | 42.75% | Centro, Lend Lease | |
| Office property | 20 - 50% | 33.25% | Investa, Macquarie, Stockland, Lend Lease | |
| Industrial property | 5 - 25% | 14.25% | Macquarie Goodman, Lend Lease | |
| Special opportunity / development | 0 - 10% | 4.75% | EG Property Group, Valad, Stockland, Lend Lease |
|
| Listed property trusts | 0 - 30% | 5.00% | Colonial First State |
- Target allocation to the core managers is not less than 75% of the sector weighting.
- Exposure to listed property investments of up to 30% of each Fund with a neutral position of 5%.
- Target international exposure of 20% - 40% of each Fund with a neutral position of 30%. Foreign exchange exposure resulting from international investments will be substantially hedged (including both the initial equity investment and distributions).
- The Manager has a grace period of 3 years from inception of the Funds to achieve the Strategic Asset Allocation. This flexibility is granted to allow the Manager time and flexibility to achieve the allocation in an asset class which is illiquid from time to time.
- Investments managed by new managers may be added to the portfolio without notice to investors provided that any new managers are approved by the Investment Committee and meet the stated investment criteria and that the portfolio remains invested within the asset allocation constraints outlined in the PDS.
