Portfolio Risk Descriptions

The Cautious strategy is intended for investors with a medium to long-term outlook—typically seven to ten years—who are comfortable accepting a moderate level of risk and market volatility. The portfolio has a clear growth focus, with 60% invested in a well-diversified range of global equities. This includes exposure to UK large and mid-cap stocks, and a broad spread across developed markets such as North America, Europe, and Japan, along with smaller allocations to Asia and emerging markets.  The remaining 40% of the portfolio is allocated to fixed income assets, including UK gilts, global bonds, and corporate debt. These holdings are designed to add stability, generate income, and offset some of the fluctuations in equity markets. Compared to more cautious strategies, the Balanced approach carries higher potential for growth, but also a greater level of short-term volatility.  This strategy is best suited to investors who want to grow their capital over time while still maintaining a meaningful degree of downside protection. It aims to strike a sensible balance between risk and return, making it a popular choice for long-term financial planning.

The Cautious to Moderate strategy is suited to investors willing to accept some risk in pursuit of long-term growth, typically over a five-to-seven-year period. Around 50% of the portfolio is allocated to equities, providing the opportunity for capital growth through exposure to global stock markets. Equity holdings are well-diversified across UK large and mid-cap companies, as well as international markets including North America, Europe, Japan, Asia, and emerging economies. This diversified approach helps manage regional risks and smooth overall returns.  The remaining 50% of the portfolio is invested in a range of fixed income assets, including UK gilts, corporate bonds, and global investment grade debt. These holdings are designed to offer income, preserve capital, and reduce overall volatility. The combination of assets aims to provide a more stable investment journey while still delivering better returns than a purely defensive approach.  While this strategy offers lower volatility than more equity-focused options, it is still subject to market risks, and short-term fluctuations should be expected. It is a good fit for investors seeking a balanced path between caution and growth.

The Moderate strategy is intended for investors with a medium to long-term outlook—typically seven to ten years—who are comfortable accepting a moderate level of risk and market volatility. The portfolio has a clear growth focus, with 60% invested in a well-diversified range of global equities. This includes exposure to UK large and mid-cap stocks, and a broad spread across developed markets such as North America, Europe, and Japan, along with smaller allocations to Asia and emerging markets.  The remaining 40% of the portfolio is allocated to fixed income assets, including UK gilts, global bonds, and corporate debt. These holdings are designed to add stability, generate income, and offset some of the fluctuations in equity markets. Compared to more cautious strategies, the Balanced approach carries higher potential for growth, but also a greater level of short-term volatility.  This strategy is best suited to investors who want to grow their capital over time while still maintaining a meaningful degree of downside protection. It aims to strike a sensible balance between risk and return, making it a popular choice for long-term financial planning.

The Moderate to Adventurous strategy is designed for investors with a long-term investment horizon and those with a higher tolerance for risk and market fluctuations. Approximately 70% of the portfolio is invested in equities, offering strong potential for capital growth. The equity exposure spans a wide range of global markets, including large and mid-sized companies in the UK, as well as significant allocations to North America, Europe, Japan, Asia, and emerging markets. This broad diversification aims to capture opportunities across economic cycles and geographies.  The remaining 30% of the portfolio is held in fixed interest assets such as gilts, global bonds, and corporate debt. These provide a degree of stability and income, helping to cushion the impact of equity market downturns.  Due to its higher equity weighting, this strategy is more volatile than lower-risk options and may experience greater fluctuations in value, particularly during periods of market stress. It is most appropriate for experienced investors who can remain invested through both market highs and lows in pursuit of greater long-term returns.

An Adventurous strategy typically suits those investors committing money for ten years or more. With around 92% of the capital allocated to shares, this approach is often more suitable for those familiar with investment markets in general and comfortable with a high level of volatility. The portfolio has a diverse spread of equities across different geographies, including emerging markets and medium-sized companies. Around 8% of the portfolio would normally be held in lower-risk investments, such as corporate and government bonds, to provide a modest level of stability during periods of market weakness. However, given the high equity weighting, portfolio valuations will still be significantly affected by a stock market decline. Investments held overseas are subject to exchange rate movements. Global stock markets can be very volatile, and it is essential that the money within this portfolio is held for the longer term, through both good times and bad.