Introduction
This investment portfolio tends to be favoured by those investing for the longer term, which are most commonly pension investors. It is diverse in its approach, holding property, hedge fund strategies, equity investments and corporate bonds.
During 2009, this portfolio produced positive growth in eight out of twelve months. Its worst month was February, where the portfolio was down by 2.3%. Its best month was April, where it produced 6.1%. For the 2009 calendar year the portfolio produced a total of 21.4%.
We expect this portfolio to produce positive and consistent growth in normal investment conditions, but equally it will behave less defensively during downward movements in global stockmarkets. We would not generally recommend this portfolio for investors seeking an income. Over a period of five years we would expect the investment to produce significantly more than a bank or building society account in normal market conditions, but investors must be prepared for higher losses during periods of stockmarket decline.
Over the longer term (7-10 years), we would expect this portfolio to produce higher results than the cautious and absolute return portfolios, which is why our balanced approach tends to appeal to pension investors.
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.
It is likely that 64% of the portfolio will be negatively affected in the event of stock market decline.
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.
