This is a portfolio designed for investors wishing to have no more than 60% allocation to pure equities and balanced allocation to bonds and property in a suitable risk adjusted mixture of passive and active investments within a balanced income mandate. The portfolio is designed for those investors for whom cashflow is not required from the portfolio in the medium term. The risk of this portfolio is set well below a pure equity market index (such as the Alsi Index).
This portfolio aims to generate annual growth in ZAR of CPI plus 1% after fees over the long term, however in a severe market drop it could lose 30%, this loss would only be realised if you were to sell the portfolio in the middle of the market drop. We would anticipate that the losses would be recovered if you were to remain invested. The portfolio is designed to minimize the need for frequent rebalancing, keeping the asset allocations within the design ranges and at the same time minimising any tax events of capital nature in the portfolio.