Capital Preservation Portfolio

How the service works

The portfolio:

• Views risk both as volatility (variation of returns over a given past period), as well as the likelihood of loss caused by political, economic or commercial factors in the future
• Recognises the importance of diversification in seeking to reduce volatility
• Diversify by asset class; sectors and geographical region; and by fund managers and counterparties
• Employs a dynamic approach across a wide range of mostly lower-risk investments.
• May include higher-risk assets, for example outright equities and commodities, but only to increase diversification with a view to reducing overall portfolio volatility. 
  

Risk warning: You should remember that the value of investments and the income derived therefrom may fall as well as rise and you may not get back the amount that you invest. The portfolio seeks to deliver a total return made up of income plus capital gain. In the event that you require a level of income higher than that generated by your portfolio, you should be aware this will dilute the capital value of your portfolio. Past performance is not a guide to the future. If you are in any doubt of the suitability of an investment for your particular circumstances, you should contact an investment manager for tailored advice.

NB – The portfolio is designed to provide a low volatility of returns, but a small number of its components may have a high level of volatility.