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 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 | 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
- In December we reduced our exposure to European equity and high yield bonds in favour of cash and emerging market hard currency debt. This should reduce the impact of volatility on performance and give us a reserve of cash to take advantage of opportunities as they arise.
- We increased exposure to a FTSE 100 fund in February 2018 after sharp falls made the index look like good value. While the effects of Brexit on the UK economy remain uncertain, we see these internationally focused, large-cap companies still benefitting from the global economic environment.
- While we remain modestly tilted towards risk assets, we have been re-positioning our portfolios towards more defensive, higher quality areas to reflect the more complex economic backdrop. For example, last year we took profit from emerging market equities – anticipating that they would suffer from a strong dollar – and put it into developed markets.
Performance
table
Fund |
Last quarter |
Dec 17 to Dec 18 |
Dec 16 to Dec 17 |
|---|---|---|---|
Personal Portfolio Fund 1 |
-1.9% |
-2.0% |
3.7% |
Personal Portfolio Fund 2 |
-4.3% |
-3.4% |
6.2% |
Personal Portfolio Fund 3 |
-6.2% |
-4.4% |
8.5% |
Personal Portfolio Fund 4 |
-8.4% |
-5.6% |
11.2% |
Personal Portfolio Fund 5 |
-10.6% |
-6.6% | 14.4% |
| *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.
