Personal Portfolio Funds UK
QUARTERLY FOCUS
The Personal Portfolio Funds (PPF) invest in a range of asset classes such as cash, bonds and equities and offer a number of different risk profiles.
Fourth Quarter 2017
Fund
PERFORMANCE
The Personal Portfolio Funds (PPF) are a simplified representation of our long-term investment house view. These five funds are actively managed but are largely implemented through passive funds. The range of risk profiles enables investors to choose among the funds depending on individual objectives and appetite for risk.
PPF 1 | Cautious (Lower risk) |
Mostly bonds (at least 70%) |
PPf 2 | Conservative (Lower - Medium risk) |
Mostly bonds (at least 50%), some equity |
PPf 3 |
Balanced (Medium risk) |
Equities (at least 45%) and bonds |
PPf 4 |
Assertive (Medium-Higher risk) |
Mostly equities (at least 65%), some bonds |
PPf 5 |
Adventurous (Higher risk) |
Mostly equities (at least 90%), minor cash allocation |
Spotlight on
Asset Allocation
- A key positive contributor to performance has been our ongoing preference for the European and Japanese equity markets. Europe was among 2017’s best performing markets in sterling terms while the Japanese equity rally included the Nikkei 225 Index hitting a 25-year high.
- We continue to be slightly overweight equities, which have benefitted from synchronised global growth. Leading indices around the world, including the FTSE 100, have reached record highs in recent months.
- We remain underweight in UK government bonds due to the backdrop of rising interest rates and inflation, preferring investment grade and high yield corporate bonds as well as emerging market debt. In the UK, gilt yields fell and prices rose towards the end of 2017 due to Brexit negotiations and the associated economic uncertainty.
Performance
table
Fund returns, after management and administration fees (platform fees not included) |
||
Fund |
Last quarter |
Dec 16 to Dec 17 |
Personal Portfolio Fund 1 |
1.9% |
3.7% |
Personal Portfolio Fund 2 |
2.8% |
6.2% |
Personal Portfolio Fund 3 |
3.5% |
8.5% |
Personal Portfolio Fund 4 |
4.1% |
11.2% |
Personal Portfolio Fund 5 |
5.1% |
14.4% |
The value of investments and any income from them can go down as well as up, and you may not recover the amount of your original investment. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down.
In the case of some investments, they may be illiquid and there may be no recognised market for them and it may therefore be difficult for you to deal in them or obtain reliable information about their value or the extent of the risks to which they are exposed.
Investments in emerging markets are subject to certain special risks, which include, for example, a certain degree of political instability, relatively unpredictable financial market trends and economic growth patterns, a financial market that is still in the development stage and a weak economy.
Latest News
and Insights
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15-Mar-2023 -
New tax year, new tax changes | Insights | Coutts
27-Feb-2023As the new tax year approaches, you might want to know about possible changes to what you’ll pay in tax. In his Autumn Statement last November, Chancellor Jeremy Hunt announced a series of tax freezes and adjustments. While there are no personal tax rises, the fact that some rates have been frozen following a year of rising prices means we’re likely see more people fall into the higher rate category and find themselves paying more tax as wages increase.