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.
First Quarter 2019
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 | 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
- Over this quarter we trimmed equity exposure in favour of cash. In the highly mobile markets seen over the last six months, a higher cash allocation provides flexibility to take advantage of any opportunities that arise.
- We reduced exposure to Japanese and European equity last year. Europe and Japan are key exporters so their markets have been hit by the trade tensions of previous months and a troubled, slowing Chinese economy – both of which dented demand for their goods.
- All funds increased exposure to longer duration gilts – except for PPF5 which doesn’t hold bonds – and subsequently benefitted from gains during the quarter.
Performance
table
Fund |
Last quarter |
march 17 to march 18 |
March 18 to march 19 |
|---|---|---|---|
Personal Portfolio Fund 1 - Lower Risk |
3.8% |
0.2% |
3.6% |
Personal Portfolio Fund 2 - Lower/Medium Risk |
5.3% |
0.8% |
4.7% |
Personal Portfolio Fund 3 - Medium Risk |
6.4% |
1.4% |
5.4% |
Personal Portfolio Fund 4 - Medium/Higher Risk |
7.7% |
2.0% |
6.3% |
Personal Portfolio Fund 5 - Higher Risk |
9.0% |
2.7% |
7.4% |
| *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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