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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.
 

Second Quarter 2019

Fund

PERFORMANCE

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.

They 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

 

  • We have trimmed equity exposure in favour of cash. In the highly mobile markets seen over recent months, a higher cash allocation provides flexibility to take advantage of any opportunities that arise.
  • We increased our investment in European stocks slightly this quarter. The continent’s economy grew in the first three months of the year, benefitting from supportive central bank policies – particularly a more accommodative European Central Bank – and stimulus in China. While challenges remain, this has improved the outlook for the region.
  • All funds increased exposure to longer duration gilts – except for PPF5 which doesn’t hold bonds – and have benefitted from subsequent gains

Performance

table

Fund

Last quarter

June 17 to June 18

June 18 to June 19

Personal Portfolio Fund 1 - Lower Risk

1.8%

1.8%
3.9%

 Personal Portfolio Fund 2 - Lower/Medium Risk

2.7%

3.4%

4.6%

 Personal Portfolio Fund 3 - Medium Risk

3.3%

4.8%

4.8%

 Personal Portfolio Fund 4 - Medium/Higher Risk

4.1%

6.2%

5.3%

 Personal Portfolio Fund 5 - Higher Risk

4.9%

8.2%
5.5%
*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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