Introduction
We have designed this portfolio with the risk averse investor in mind. It employs several funds, which aim to produce returns regardless of market conditions.
This portfolio is suitable for those who do not like risk, but want higher returns than those associated to bank and building societies. We tend to find clients use this style of portfolio for ‘rainy day’ money, which they may need access to, but are likely to leave the investments untouched for a minimum period of three years
During 2009, this portfolio produced positive growth in nine out of twelve months. Its worst month was February, where the portfolio was down by 1.1%. Its best month was April, where it produced 1.9%. For the 2009 calendar year the portfolio produced a total of 8%.
We expect this portfolio to be extremely defensive in adverse market conditions. It is feasible that the portfolio will produce growth even in an unhealthly economic environment.
Remember, you can start an online pension, investment or ISA account without any initial charges and withdraw your money (or transfer away) at anytime without penalty.
Although this portfolio works independently of world equity markets, we would expect it to be impacted, albeit to a limited extent, in volatile stock market conditions.
Proactive Service
Sterling Financial Services firmly believe that investors need a proactive approach to monitoring their investments. We are here to add value. There are certainly times where there is a clear case for altering the investment strategy or just replacing a poor performing manager. Sterling’s investment team constantly review the underlying investments and recommend switches when and where necessary. Historically we have made, on average, three changes a year. We simply write to you telling you why a change is necessary and request your consent to make the alteration. Switches are undertaken free of charge.
You can review your portfolio online whenever you like and you will receive a monthly update from Sterling confirming the progress of your investments.
Risk Warning
Past performance is not necessarily a guide to future returns and the value of investments can fall as well as rise. Investments overseas carry the additional risk of exchange rate fluctuations. Certain Unit Trust Funds are subject to more specific risk warnings. Please check the fund prospectus if you are unsure. Where a property fund is held, in rare circumstances, the manager may need to sell property/ies in order meet with investor withdrawals. Although unlikely, this may result in a waiting period before the property fund can be encashed. When transferring an investment or pension during the transfer process there will be a limited amount of time when your money is not invested. This could work against you in unfavourable market conditions and conversely work for you in the event of market decline.
