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.
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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.
|Fund name||% in fund||Asset class|
|Man GLG UK Absolute Value||5.81||Absolute Return|
|Liontrust Special Situations Fund||4.90||Equities|
|Fidelity Global Dividend||4.12||Equities|
|Jupiter UK Special Situations||3.81||Equities|
|Greencoat UK Wind PLC||3.75||Alternatives|
|Invesco Physical Markets PLC||3.65||Gold|
|iShares $ TIPS UCITS ETF GBP Hgd Inc||3.51||Fixed Income|
|Polar Capital Technology Trust PLC||3.10||Equities|
|TB Evenlode Global Equity||3.10||Equities|
|iShares $ Treasury Bd 1-3yr UCITS ETF GBP Hgd Dist||3.09||Fixed Income|
|FTF MC European Unconstrained||3.08||Equities|
|Bluefield Solar Income Fund Ltd||3.01||Alternatives|
|Target Healthcare REIT Ltd||2.96||Property|
|Fidelity Asia Pacific Opportunities||2.83||Equities|
|Invesco US Treas Bd 7-10 Year UCITS ETF Dist||2.73||Fixed Income|
|Man GLG Sterling Corporate Bd||2.66||Fixed Income|
|Supermarket Income REIT PLC||2.61||Property|
|Artemis Target Return Bond||2.58||Absolute Return|
|TB Guinness Global Eq Inc||2.42||Equities|
|Chrysalis Investments Ltd||2.37||Equities|
|Artemis Corporate Bond||2.24||Fixed Income|
|Hipgnosis Songs Fund Ltd||2.15||Alternatives|
|Nomura Global Dynamic Bond||2.09||Fixed Income|
|Fidelity Index US||2.01||Equities|
|Sequoia Economic Infrastructure Income Fund Ltd||1.90||Fixed Income|
|Doric Nimrod Air Two Ltd||1.66||Alternatives|
|Round Hill Music Royalty Fund Limited||1.65||Alternatives|
|iShares UK Gilts 0-5yr UCITS ETF||1.49||Fixed Income|
|Allianz Strategic Bond||1.26||Fixed Income|
|Renewables Infrastructure Group Ltd||1.14||Alternatives|
|Life Science REIT plc||0.98||Property|
|iShares $ Treasury Bond 1-3yr UCITS ETF USD (Dist)||0.88||Fixed Income|
|Invesco UK Gilts UCITS ETF Dist||0.76||Fixed Income|
|iShares $ Treasury Bond 20+yr UCITS ETF GBP H D||0.45||Fixed Income|
Information correct as at 31/08/2023. 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 05/06/2017-31/08/2023 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.