The specialist managers selected for this portfolio invest in fixed-interest instruments comprising mainly bonds, which generally have maturity dates longer than one year, and money-market instruments. Bonds are issued by governments or corporate entities and may provide an investor with a higher investment return than cash. The managers, which may have different bond investment styles, are given specific mandates aimed at steady growth in capital value and income.
Relative to other single manager bond-only portfolios, this portfolio is expected to have lower volatility of returns over the medium term due to the nature of its construction.
The portfolio is aimed at investors with a medium-term investment horizon (more than three years). Investment Solutions expects:
* A low probability of capital loss over the medium term
* Investment returns above inflation over the medium term