PORTFOLIO STRATEGIES

Cautious

A portfolio designed for those wishing to take a lower risk approach. The underlying assets offer the potential to provide a better total return over the long term than is likely to be achieved from a cash deposit account. Although the investments held within the portfolio are likely to fluctuate in value, security of capital will be the priority and it is expected that the level of volatility will be relatively low.

Moderate

Whilst the principle of capital preservation will still be a factor in asset allocation the Moderate Portfolio accommodates a higher proportion of assets where the capital value will vary according to market conditions. For example, there will be a greater exposure to equities although the proportion of the portfolio invested in equity only funds will not exceed 50%.

Balanced

A portfolio which aims to strike a reasonable compromise between risk and reward. This is achieved by managing a selection of investments with different risk ratings which, when combined, will produce an overall medium risk approach. As this portfolio is likely, at times, to have a significant exposure to equities, it will be liable to greater fluctuations in value compared to the Cautious and Moderate Portfolios.

Growth

A portfolio which adopts a higher risk strategy in pursuit of capital growth (where income is of secondary importance), primarily through investment in equity related assets. In pursuing higher levels of capital return, the possibility of incurring a capital loss is also increased. In adopting this strategy, the investor would have to accept the additional risk involved and the likelihood of higher volatility.

Unrestricted

A portfolio for the more experienced investor, who is prepared to take very high risks by investing in assets that have the potential for substantial gain, but also have the capacity for substantial loss. The portfolio will consist of individual equity holdings and other equity related assets which provide exposure to large, mid and small cap equities. Your attitude to investment risk and capacity for loss will have determined the suitability of these investments, and the level of exposure to them within your portfolio. You accept the increased risk associated with this portfolio, presented by both the lower level of diversification and a likely higher level of volatility.

Income

A portfolio designed for clients who require a high level of dividend and/or interest income to be paid out on a regular basis. Capital growth is of secondary importance. Income portfolios will invest in equity income funds, corporate, strategic and high yield bonds, commercial property funds, individual equities (subject to risk appetite) and other stock market related products that aim to generate a high income.

The value of investments and the income from them can go down as well as up and you may not get back the amount invested.