Sometimes, you want a place to park your savings where they have the potential to grow over the long term, but you’re not comfortable with the kinds of shorter-term swings you typically get in equity markets.
In the most cautious fund, we aim to produce growth over the long term, but with lower volatility than equity markets†. While returns may not be as high as you could potentially get in the aggressive fund, you'll also be taking much less risk.
We will invest in a variety of assets to create a diversified portfolio. We carefully select assets that are less correlated, which means investments that don’t usually rise or fall in tandem – or at least not to the same extent. This reduces the risk that everything in the fund drops dramatically at the same time and helps to smooth your returns.
We focus on lower-risk funds that are defensive in nature. These funds' underlying assets may include UK and overseas equities, as well as bonds, property, gold and other investments. We are also likely to have a high weighting to targeted absolute return strategies that aim to produce positive returns in any market conditions.
We believe in transparency, so you can see a full list of what the VT Chelsea Managed Cautious Growth fund invests in below.
|Holding||% of fund||Asset class|
|Merian Global Equity Absolute Return||6.20||Absolute Return|
|Fidelity Global Dividend||5.52||Equities|
|SVS Church House Tenax Absolute Return||5.02||Absolute Return|
|Artemis Global Income||5.00||Equities|
|Man GLG UK Absolute Value||4.78||Absolute Return|
|Jupiter UK Special Situations||4.69||Equities|
|Investec Global Special Situations||4.64||Equities|
|Vontobel Fund TwentyFour Absolute Return Credit||4.59||Absolute Return|
|Liontrust Special Situations||3.79||Equities|
|Janus Henderson UK Absolute Return||3.60||Absolute Return|
|Royal London Short Duration Global High Yield Bond||3.36||Fixed Income|
|Jupiter Absolute Return||3.22||Absolute Return|
|BlackRock UK Absolute Alpha||3.06||Absolute Return|
|Janus Henderson Emerging Markets Opps||2.86||Equities|
|GCP Student Living PLC||2.84||Property|
|Merian Gold & Silver||2.83||Gold & Silver|
|Invesco Perpetual European Equity||2.68||Equities|
|BMO Global Equity Market Neutral||2.63||Absolute Return|
|Impact Healthcare REIT PLC||2.46||Property|
|Target Healthcare REIT Ltd||2.43||Property|
|Foresight Solar Fund Ltd||2.38||Alternatives|
|John Laing Environmental Assets Group Ltd||2.09||Alternatives|
|Sequoia Economic Infrastructure Income Fund Ltd||1.82||Fixed Income|
|Fidelity Asia Pacific Opportunities||1.54||Equities|
|Smithson Investment Trust||0.87||Equities|
Information correct as at 30 November 2018. Please note percentages may not add up to 100% exactly due to round errors
While we anticipate this fund will have a lower volatility than equity markets, it's important to understand investments can go down as well as up in value. You may not get back the amount originally invested.
†Long term is 5+ years. The aim is to have lower volatility than global equities over a rolling 5-year period.
*Source for all performance data: FE Analytics on a bid-to-bid basis total return with income reinvested to 30/11/2018, benchmark is the IA Mixed Investment 20-60% Shares
The VT Chelsea Managed Funds are for investors who prefer to make their own investment decisions, without personal advice.
Valu-Trac Investment Management Limited is the authorised corporate director (ACD) and investment manager of the VT Chelsea Managed Funds. Valu-Trac is authorised and regulated by the Financial Conduct Authority (FCA). Valu-Trac’s FCA registration is 145168. Chelsea Portfolio Management Services Limited will be the investment adviser for the VT Chelsea Managed Funds.