Investments for the more risk averse

 

Below you will find two sections providing investments for the more risk averse: Ongoing Products – products which are always available and which we often recommend and New Products – which have recently become available

Ongoing Products – products which are always available and which we often recommend

PruFunds held within the Prudential International Investment Bond

The PruFund Cautious and PruFund Growth Funds are actively managed multi-asset funds, based upon Prudential’s strongly performing With Profits range that is lower risk than investing directly in equities. They aim to provide growth over the medium to long term while smoothing the peaks and troughs of investment performance.

PruFund Cautious

The PruFund Cautious has been in existence for just over 10 years during which time the returns have been higher than those offered by banks and building societies.

It is important that you are aware that past performance is no indication of future performance and no investment is risk free, the value of the investment may be less that you originally invested.

Every three months Prudential issue a growth forecast which is generally around 5.1% to 6.0% p.a. gross, before charges. 

The smoothing of returns helps to provide lower volatility (movements in the value of the investment) than investing directly in the stock market. 

Prudential’s Expected Growth Rate for the PruFund Cautious is currently 5.1% per annum gross of all fees*. New investors can benefit from receiving this rate guaranteed on a pro-rata basis for an initial period of up to 3 months.

*As of 25th November 2019

PruFund Growth 

The PruFund Growth is an actively managed multi-asset fund that is lower risk than investing directly in the stock market. The focus of the fund is a little more on equities rather than fixed interest.

It is important that you are aware that past performance is no indication of future performance and no investment is risk free, the value of the investment may be less that you originally invested.

The smoothing of returns helps to provide lower volatility (movements in the value of the investment) than investing directly in the stock market. 

Prudential’s Expected Growth Rate for the PruFund Cautious is currently 5.9% per annum gross of all fees*. New investors can benefit from receiving this rate guaranteed on a pro-rata basis for an initial period of up to 3 months.

*As of 25th November 2019

Aviva Guaranteed 100 Fund (accessed via Aviva Select Investment Bond)

This fund is an actively managed multi-asset fund which invests in equities, gilts, corporate bonds and property. It offers a lower risk than investing directly in equities by spreading investments over a number of asset classes, thereby protecting investors from significant falls in the value of any one asset.

It has the advantage of being able to ‘lock-in’ investment growth at certain points in the future and of being able to attach a capital guarantee. It also has provided good returns in the past for investors, although past performance is not a guide to future performance.

There is the option to include a 100% guarantee* of the original investment amount, less any withdrawals taken, on its fifth anniversary. This means that the worst that can happen is that you get back your original capital at the end of five years. Please note that the guarantee only applies on the fifth anniversary, so at all other times the value of the investment can go down as well as up and you may not get back the amount invested if you withdraw your money.

There is a useful option to ‘lock-in’ any investment gains at a future date by switching into a newer version of the Guaranteed 100 Fund, or indeed at any time by switching into cash. Aviva usually launch a new version of the fund between September and November each year. In such instances the five year guarantee period will begin again from the point in time where the switch is made.

 

 

The fund offers growth potential through the investment expertise of Aviva Investors who have a strong track record in the management of multi-asset funds. Each different issue of the fund has provided different returns.

The fund is designed to achieve steady growth over five years, but the guaranteed element of the fund may result in lower growth potential than is offered by a direct investment in some asset types such as stocks and shares.

The fund is held via the Aviva Select Investment Bond, a UK onshore investment bond which allows access to a wide range of funds with a variety of risk profiles. It provides unlimited free switching between funds and no early exit charges.

*There are charges for managing the investment, and an additional charge is made to provide the guaranteed element

Please click on the link below to access the product brochure.

https://www.aviva.co.uk/content/dam/aviva-public/gb/pdfs/personal/retirement/select-investments/shared/in06049c.pdf

Collectives

Another area we specialise in is Unit Trusts or Open Ended Investment Companies (OEICS), together we refer to these as “Collectives”.

Collectives consist of perhaps numerous company shares, Company Corporate Bonds (loans to companies), Government loan stock such as UK Government Gilts or Property Funds. There are literally thousands of these funds which invest in different asset classes and in different market sectors, both by speciality (e.g. Technology) or geographic region and sector (e.g. UK Smaller Companies).

The advantages of investing in Collectives include diversification across a range of shares or assets thereby reducing risk of exposure to just one or two companies, professional stock-picking and lower dealing costs. Returns over the long term are anticipated to be greater than for other product groups. We recommend diversification when choosing Collectives, based upon spreading investments across markets in funds which have a good track record.

When you invest in collectives you are not tied into any long term contract and you can take money out penalty free should you need to.

 

Chase Tailored Portfolios

We offer a range of “Chase Tailored Portfolios” each comprising four funds of funds run by separate professional managers. Our portfolios are comprised of these types of fund because:

  • The fund managers can react more quickly to market movements than we can and can quickly change asset allocation if required, this means we will not have to trouble you to make frequent switches between portfolios
  • The funds of funds are volatility targeted and the managers can more easily adjust their portfolios so that the new portfolios will more accurately reflect your attitude to risk

We constantly monitor the managers and only if we find there is unacceptable shortfalls in performance or we become aware of a suite of better performing funds of funds will we need to contact you to recommend changes, which you are free to accept or reject.

We operate our portfolios on the Old Mutual Wealth platform which enables us to monitor your investments regularly and make switches between funds when we consider it beneficial to you. We also provide a facility so that you can monitor your own investment portfolio online should you wish.

We run 5 Chase Tailored Portfolios of Collectives on the Old Mutual platform. The approximate equity and fixed interest allocations for the two lower-volatility portfolios are:

Cautious Portfolio –           Equities 24%, Fixed Interest 64%

Cautious Growth Portfolio –  Equities 36%, Fixed Interest 41%

Volatility describes the variability of returns you receive on an investment. The measure is shown as movements, plus or minus from the average return. Generally higher long term returns accompany greater volatility. However many investors feel there is greater security in investing in lower volatility portfolios. For this reason we supply a variety of portfolios with varying degrees of volatility. It cannot be guaranteed that maximum volatility levels will not be exceeded though in times of extreme market turbulence.

 

We also have a range of Ethical Portfolios. For details of these please <CLICK HERE>.

Please be aware though that past performance is not a reliable indicator of future performance and with these types of investment past performance cannot guarantee future returns and the value of your investment can go down as well as up. It is possible you could end up with less than you originally invested.

We will provide further details of these portfolios at a meeting with you. Bespoke portfolios of collective investments can also be provided if required.

Our Portfolio Services includes;

  • Monthly valuations by email or post
  • Recommendations for switches in funds if we consider it necessary
  • Regular meetings / telephone support when required

 

 

New Products

Structured Deposits

We always have a range of products available, please call us on 640350 to discuss.