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An Explanation of Investment Strategies

Conservative Strategy

A conservative investment strategy can be described as a low-risk investment with the objective of generating above-inflation growth over a 3-year period. A conservative portfolio is comprised of stable and income funds.

A conservative strategy focuses on capital preservation whilst providing some exposure to long-term assets, with the goal of achieving a combination of capital growth and income from the portfolio. The portfolio is invested into a combination of cash, bonds, shares, listed property and offshore assets.

Level of Risk

Low-Risk

Suitable for investors who
  • Require stable growth from their investment over the short to medium-term.
  • Are drawing a regular income from their savings or retirement funding.
  • Require returns that are higher than money market or fixed interest assets over the longer term (5 years+).
Strategy return objective

The targeted return of a conservative portfolio is 3-4% above South African inflation (CPI).


Moderately Conservative Strategy

A moderately conservative investment strategy can be described as a low to medium-risk investment with the objective of generating above-inflation growth over a 3 to 5-year period. A moderately conservative portfolio is comprised of stable and medium-equity funds.

A moderately conservative strategy focuses on capital preservation whilst providing medium exposure to long-term assets, with the goal of achieving a combination of capital growth and income from the portfolio. The portfolio is invested into a combination of cash, bonds, shares, listed property and offshore assets.

Level of Risk

Low to Medium-Risk

Suitable for investors who
  • Require stable growth from their investment over the medium-term.
  • Are drawing a regular income from their savings or retirement funding with a medium or long-term investment horizon.
  • Require returns that are higher than money market or fixed interest assets over the longer term (5 years+).
Strategy return objective

The targeted return of a moderately conservative portfolio is 4-5% above South African inflation (CPI).


Moderate Strategy

A moderate investment strategy can be described as a medium-risk investment with the objective of generating growth well above-inflation over a 5 to 7-year period. A moderate portfolio is comprised of balanced and worldwide funds to achieve its investment objective.

A moderate strategy focuses on long-term growth with some downside protection in the case of short-term negative market movements. The portfolio is invested into a combination of shares, listed property, offshore assets, cash and bonds.

Level of Risk

Medium-Risk

Suitable for investors who
  • Require a real rate of growth from their investment over the medium to long-term (5 to 7 years).
  • Are comfortable with slight fluctuations in the performance of the portfolio over any 3 to 12-month period.
  • Do not require material drawings from the investment in the short-term.
Strategy return objective

The targeted return of a Moderate portfolio is 5-6% above South African inflation (CPI).


Moderately Aggressive Strategy

A moderately aggressive investment strategy can be described as a medium to high-risk investment with the objective of generating returns well above inflation over the medium to long-term. A moderately aggressive portfolio is comprised of balanced and flexible funds.

A moderately aggressive strategy focuses on capital growth through high exposure to asset classes which have historically provided the highest investment returns over the long-term. The portfolio is invested into a combination of shares, listed property and offshore assets with a low exposure to cash and bonds.

Level of Risk

Medium to High-Risk

Suitable for investors who
  • Require a high level of growth over the medium to long-term (7 to 10 years).
  • Are comfortable with fluctuations in the performance of the portfolio over any 12-month period.
  • Do not require drawings from their investment in the short-term.
Strategy return objective

The targeted return of a moderately aggressive portfolio is 6-7% above South African inflation (CPI).


Aggressive Strategy

An aggressive investment strategy can be described as a high-risk investment with the objective of generating maximum returns attainable from equity markets (shares) over the long-term. An aggressive portfolio is comprised of equity and value funds with exposure to both SA and offshore equity markets.

An aggressive strategy focuses on achieving maximum capital growth through high exposure to shares both in South Africa and around the globe. The portfolio is invested into a combination of shares, listed property and offshore assets with almost zero exposure to low-risk assets such as cash and bonds.

Level of Risk

High-Risk

Suitable for investors who
  • Require a maximum level of growth over the long-term (10 years or longer).
  • Are comfortable with fluctuations in the performance of the portfolio over any 12-month period.
  • Do not require drawings from their investment in the short-term.
Strategy return objective

The targeted return of an aggressive portfolio is the maximum return attainable from equity markets. The historical real return of South African equities has been 8% above SA inflation (CPI).

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