Cautious Fund

Investment strategy

The Fund will have an equity exposure of between 15% and 25% with the balance of the fund invested in fixed income securities, commodities, listed real estate and cash. The fund will primarily use Exchange Traded Funds (ETF's) to meet its investment objective but will also selectively invest in funds managed by active fund managers as well as selected direct equity and fixed income investments.

Benchmark

The Fund has a benchmark of 20% MSCI World Total Return Index and 80% Bloomberg Barclays Global Aggregate Bond Index. It is anticipated that over longer time horizons this return will approximate around 4% per annum.

Who is this fund designed for

This Fund is most suitable for investors who do not wish to experience significant drawdowns in capital values over a rolling 3-year period and are therefore prepared to accept lower expected returns over the longer term. It is suitable for investors with a shorter investment time horizon of three years.

Risk

This fund is our lowest risk, lowest potential return fund that includes equity exposure. It invests a majority of its assets in fixed income securities. It is, however, still much riskier than cash savings, especially over the short term. Shares, fixed income instruments and commodities go down in value as well as up, so your investment returns will fluctuate daily - sometimes quite significantly - and you may get out less than you put in. Because this Fund invests in securities around the world, there is also the risk of being adversely affected by changes in foreign currency exchange rates.

Information not Advice

All information on our website is meant to help inform you in your investment decisions, not to provide advice on what you should or shouldn’t do. If you are seeking financial advice, please consult a qualified financial adviser.