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|
|Man GLG UK Absolute Value||8.21||Absolute Return|
|Liontrust Special Situations||6.44||Equities|
|Fidelity Global Dividend||6.41||Equities|
|JOCHM Global Opportunities||6.27||Equities|
|Merian Gold & Silver||4.70||Gold & Silver|
|Jupiter UK Special Situations||4.39||Equities|
|Artemis Corporate Bond||4.37||Fixed Income|
|Vontobel Fund TwentyFour Absolute Return Credit||3.68||Absolute Return|
|GCP Asset Backed Income Fund Ltd||3.34||Fixed Income|
|Nomura Funds Ireland-Global Dynamic Bond||3.24||Fixed Income|
|Impact Healthcare REIT PLC||2.96||Property|
|GCP Infrastructure Investments Ltd||2.73||Fixed Income|
|Merian Chrysalis Investment Co Ltd||2.57||Equities|
|Legg Mason IF Martin Currie European Unconstrained||2.54||Equities|
|Ninety One Global Special Situations||2.46||Equities|
|BlackRock UK Absolute Alpha||2.39||Absolute Return|
|SVS Church House Tenax Absolute Return||2.35||Absolute Return|
|Supermarket Income REIT PLC||2.20||Property|
|Civitas Social Housing PLC||1.97||Property|
|Janus Henderson UK Absolute Return||1.94||Absolute Return|
|Fidelity Asia Pacific Opportunities||1.74||Equities|
|Sequoia Economic Infrastructure Income Fund Ltd||1.55||Fixed Income|
|Foresight Solar Fund Ltd||1.25||Alternatives|
|Target Healthcare REIT Ltd||1.04||Property|
Information correct as at 31 May 2020. Please note percentages may not add up to 100% exactly due to rounding 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.
**FE Analytics 05/06/2017-31/05/2020 VT Chelsea Managed Cautious Growth vs IA Mixed Investment Investment 20-60% Shares total return in sterling
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.