The main asset classes we use are as follows:

Cash
Cash investments are designed to protect your money whilst earning some interest. Most people have cash investments in the form of deposit accounts that pay regular interest and enable you to access your money easily. They are one of the safest types of investments, although the buying power of your cash could be eroded by the effects of inflation over time.

Equities
Equities represent ownership stakes in the companies that issue them. Over the long-term, shares have proved to be the best performing asset class, giving returns greater than bonds, commercial property and cash investments. They have also had the highest volatility of returns of any of the asset classes found in our portfolios. We have sub classes of equities as follows:

UK Equity - Funds which invest at least 80% of their assets in UK company shares. European Equity - Funds which invest at least 80% of their assets in European company shares and exclude UK securities.

Far East (excluding Japan) - Funds which invest at least 80% of their assets in shares in Far Eastern companies and exclude Japanese securities.

Japan - Funds which invest at least 80% of their assets in Japanese company shares. Emerging Markets - Funds which invest 80% or more of their assets directly or indirectly in emerging markets as defined by the World Bank, without geographical restriction. Indirect investment e.g. China shares listed in Hong Kong, should not exceed 50% of the portfolio.

Property
In addition to offering substantial capital growth opportunities as property values rise, rental property can generate significant income. Commercial tenants often sign leases for ten years or more, providing good security of income. Rental incomes can fluctuate with demand, but since tenants are locked into long-term agreements, landlords become more exposed to these fluctuations at the end of the lease. Some property funds will also invest in property related securities.

Hedge
Hedge funds do not represent an asset class such as equities and property. They are instead representatives of a wide range of investment strategies, investing in equities, bonds and other asset classes, which have as their objective the generation of positive returns in all market environments and the protection of capital in falling markets.

Alternative
Alternative Investments represent an asset class, or strategy, that has the potential to provide returns that are not correlated to traditional stock and bond returns or economic cycles. The advantage of non-correlated investments is that when added to a traditional portfolio they potentially can increase overall portfolio returns while reducing risk. Such investments are generally managed by investment professionals who specialise in a specific sector or style. Examples include asset classes such as commodities (eg gold, wheat, dairy), or derivatives.

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