Choice of risk level

There are five MyPortfolio risk levels for each of the three ranges, providing sufficient choice to meet the risk preferences of the majority of clients.

Portfolio I

The portfolio aims to generate growth over the longer term while being managed to a level of risk, rather than a level of return. It aims to deliver modest or relatively stable levels of return over the longer term with some short term periods of fluctuation in value.

The portfolio will have exposure to a wide range of asset classes mainly defensive assets such as cash, money market securities, government bonds, corporate bonds although it may have some growth assets such as equities, high yield bonds, Global REITs and emerging market debt. The Index Plus and Select SMAs can also invest in alternative investments strategies including those using derivatives.

Portfolio II

The portfolio aims to generate growth over the longer term while being managed to a level of risk, rather than a level of return. It aims to deliver a moderate level of return over the longer term with relatively modest yet frequent fluctuations in value.

The portfolio will have exposure to a wide range of asset mainly defensive assets such as cash, money market securities, government bonds, corporate bonds although it may have some growth assets such as equities, high yield bonds, Global REITs and emerging market debt. The Index Plus and Select SMAs can also invest in alternative investments strategies including those using derivatives.

Portfolio III

The portfolio aims to generate growth over the longer term while being managed to a level of risk, rather than a level of return. It aims to deliver a reasonable level of return over the longer term with relatively high and frequent fluctuations in value.

The portfolio will have exposure to a wide range of asset classes which may include growth assets such as equities, high yield bonds, Global REITs and emerging market debt as well as defensive assets such as cash, money market securities and corporate bonds. The Index Plus and Select SMAs can also invest in alternative investments strategies including those using derivatives.

Portfolio IV

The portfolio aims to generate growth over the longer term while being managed to a level of risk, rather than a level of return. It aims to deliver a relatively high level of return over the longer term but clients should be prepared to accept significant fluctuations in value that may result in sustained periods of negative performance.

The portfolio will have exposure to a wide range of asset classes which may include growth assets such as equities, high yield bonds, Global REITs and emerging market debt, and, to a lesser extent, defensive assets such as cash, money market securities and corporate bonds. The Index Plus and Select SMAs can also invest in alternative investments strategies including those using derivatives.

Portfolio V

The portfolio aims to provide growth over the longer term while being managed to a level of risk, rather than a level of return. It aims to deliver a high level of return over the longer term but clients should be prepared to accept fluctuations in value of similar size and frequency to those experienced by equity markets. This may mean sustained periods of negative performance.

The portfolio will have exposure to a wide range of growth assets such as equities, high yield bonds, Global REITs and emerging market debt. The Index Plus and Select SMAs can also invest in alternative investments strategies including those using derivatives.

Warning
Risk warning - Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.