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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 five different risk profiles.
 

third 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 view. The 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  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

 

  • Despite a sharp drawdown in August, funds have benefitted from strong equity performance in July and a solid recovery in September. This demonstrates the benefit of staying invested during volatility as the quarter has ended with positive returns from all strategies.
  • We’ve added to US equity, bringing our allocation up to a more or less neutral weight. US equities typically display higher quality characteristics and tend to be better placed to perform over different economic conditions.
  • Given sterling’s attractive valuation, we recognise the potential for gains if the political climate improves. While we’ve reduced exposure to sterling-based assets recently in recognition of short-term volatility, we retain a modest preference on the basis of our contrarian principles.

Performance

table

FUND RETURNS, AFTER MANAGEMENT AND ADMINISTRATION FEES (PLATFORM FEES NOT INCLUDED)

Fund

Last quarter

Sept 16 to Sep 17

Sep 17 to Sep 18

Sep 18 to Sep 19

Personal Portfolio Fund 1 – Lower Risk

3.1%

1.1%

1.9%

6.9%

Personal Portfolio Fund 2 – Lower/Medium Risk

2.8%

4.2%

3.8%

6.5%

Personal Portfolio Fund 3 – Medium Risk

2.5%

6.9%

5.4%

5.6%

Personal Portfolio Fund 4 – Medium/Higher Risk

2.2%

10.3%

7.4%

4.9%

Personal Portfolio Fund 5 – Higher Risk

2.2%

14.0%

9.8%

4.4%

Past performance should not be taken as a guide to future performance.
The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

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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