Model Portfolios

The Cautious Investor

The Cautious investor is sensitive to short-term losses. A Cautious investor’s aversion to losses could compel them to shift into a more stable investment if significant short-term losses occur. Analysing the risk-return choices available, a Cautious investor is usually willing to accept somewhat lower returns to assure greater safety of his or her investment. The following criteria may help to ensure that such investors have the best chance of achieving these goals: The portfolio should have at least an approximately 80 percent chance of achieving a non-negative return over a four-year holding period.  

Example Portfolio breakdown:Cautious – 7% Cash / 33% Government Bonds / 30% Global Bond Funds / 30% Equity or ETFs

The above asset allocations are only intended as a guide.

The Balanced Investor

The Balanced Investor is somewhat concerned with short-term losses and may shift to a more stable option in the event of significant losses. The safeties of investment and return are typically of equal importance to the Balanced Investor. The following criteria may help to ensure that such investors have the best chance of achieving these goals: The portfolio should have at least an approximately 80 percent chance of achieving a non-negative return over a five-year holding period.

Example portfolio breakdown:Balanced – 7% Cash / 20% Government Bonds / 20% Global Bond Funds / 53% Equity or ETFs

The above asset allocations are only intended as a guide.

The Adventurous Investor

The Adventurous Investor aims to maximise long-term expected returns rather than to minimise possible short-term losses. An Adventurous Investor values high returns relatively more and can tolerate both large and frequent fluctuations through time in portfolio value in exchange for a higher return over the long term.   The following criteria may help to ensure that such investors have the best chance of achieving these goals: The portfolio should have at least an approximately 80 percent chance of achieving a non-negative return over a ten-year holding period.

Example Portfolio Breakdown:Adventurous – 7% Cash / 10% Government Bonds / 15% Global Bond Funds / 68% Equity or ETFs

The above asset allocations are only intended as a guide