Cautious

The Cautious portfolio objective is moderate and steady total returns. It holds a balanced mix of higher risk growth assets such as equities and property, and lower risk assets such as fixed income. Although it takes a defensive approach, investors in this portfolio must be willing to accept some short term fluctuations in the value of their investments. It is important to remember that the value of investments, even the lower risk ones, and the income from them, can go down as well as up and you may not get back the amount you invested.

 

Fund Allocation KIID
Henderson UK Property 15% (PDF)
Henderson Strategic Bond 15% (PDF)
Invesco Perpetual Income 20% (PDF)
Invesco Perpetual Monthly Income Plus 15% (PDF)
Legal and General Dynamic Bond 15% (PDF)
Threadneedle Global Equity Income 20% (PDF)

 

Please remember, for investments in overseas markets, the returns may increase or decrease as a result of currency fluctuations. For funds that invest in bonds the price of bonds is influenced by movements in interest rates, changes in the credit rating of bond issuers and other factors such as inflation and market dynamics. In general, as interest rates rise the price of a bond will fall (and vice versa). Bonds with a longer time to maturity are generally affected to a greater degree. The risk of default is based on the issuer’s ability to make interest payments and to repay the loan at maturity. Default risk may therefore vary between different government issuers as well as between different corporate issuers. Funds holding smaller companies may be less liquid and price swings greater than those in larger companies. Some funds can also use derivatives to take short positions in companies. The use of derivatives can under certain circumstances increase volatility¬†and risk beyond that expected of a fund that only invests in conventional equities.

Asset Allocation

cautious-asset-allocation

Region Allocation

cautious-region-allocation

Top 10 Holdings

Holding Original %
1 REYNOLDS AMERICAN INC 1.73
2 USA (GOVT) 1 15/02/18 1.58
3 TREASURY 2% GILT 22/07/20 GBP0.01 1.07
4 BRITISH AMERICAN TOBACCO 0.95
5 UNITED STATES OF AMER TREAS BONDS 0.875% BDS 15/07/18 USD100 0.81
6 BT GROUP 0.79
7 ASTRAZENECA PLC 0.76
8 IMPERIAL BRANDS PLC 0.75
9 BAE SYSTEMS 0.74
10 440 STRAND, WEST END 0.74

 

Please read the Key Investor Information Document for each fund and our full Important Investment Risk Information.