
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.
Third Quarter 2018
Fund
PERFORMANCE
The Personal Portfolio Funds (PPF) invest in a range of asset classes such as cash, bonds and equities and offer five different risk profiles.
They are a simplified representation of our long-term investment house view. These five funds are actively managed but are implemented through an index tracking approach. The five risk profiles enable investors to choose among the funds depending on their individual objectives and appetite for risk.
PPF 1 | Lower risk |
Mostly bonds (at least 70%) |
PPf 2 | Lower - Medium risk |
Mostly bonds (at least 50%), some equity |
PPf 3 |
Medium risk |
Equities (at least 45%) and bonds |
PPf 4 |
Medium-Higher risk |
Mostly equities (at least 65%), some bonds |
PPf 5 |
Higher risk |
Mostly equities (at least 90%), minor cash allocation |
Spotlight on
Asset Allocation
- We made no asset allocation changes to the funds in the third quarter of 2018. Strong global growth, led by the US, continues to be positive for equities, while our bond portfolio provides diversification benefits during periods of volatility. On the whole, we still see a preference for equities as the right positioning for the time being.
- We still like Europe. We reduced our overweight to the continent earlier in the year in favour of the US – making our overall exposure to America broadly neutral – but still see attractive valuations.
- Returns from the FTSE 100 have been more or less flat over the quarter and the year-to-date. We opportunistically increased our investment in the index in February when prices were low following a sell-off, and our funds have benefitted from the subsequent recovery.
Performance
table
Fund |
Last quarter |
Sept 17 to Sept 18 |
Sept 16 to Sept 17 |
---|---|---|---|
Personal Portfolio Fund 1 - Lower Risk |
0.2% |
1.9% |
1.1% |
Personal Portfolio Fund 2 - Lower/Medium Risk |
1.0% |
3.8% |
4.2% |
Personal Portfolio Fund 3 - Medium Risk |
1.7% |
5.4% |
6.9% |
Personal Portfolio Fund 4 - Medium/Higher Risk |
2.5% |
7.4% |
10.3% |
Personal Portfolio Fund 5 - Higher Risk |
3.3% |
9.8% |
14.0% |
*The returns are derived from the Fund net asset values (NAV) and are quoted net of all fees paid from within the Fund, which include the on-going charges figure (OCF) and transaction charges but do not include the platform fees or any potential one-off charges (e.g. advice fees or dilution levy). |
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.
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