What does Retiready Stability invest in?
Updated 27 February 2019
It currently invests equally in four underlying funds, which are:
- Fulcrum Diversified Core Absolute Return
- Jupiter Strategic Reserve
- Kames UK Equity Absolute Return
- Newton Global Dynamic Bond
These are absolute or positive return funds. This means they aim to achieve positive returns whether markets go up or down. In this way they’re different from the majority of other funds (relative return funds), which aim to beat a benchmark, such as the FTSE 100.
For example, if the FTSE 100 falls by 20% and the fund only falls by 15%, a relative return fund will have met its objective. Relative return funds often have greater growth potential but also greater potential for loss.
Absolute return funds were introduced because many investors prefer to see lower returns as long as they don’t lose money. It’s important to stress that there’s no guarantee these types of fund will achieve positive returns.
Each fund invests in different types of investment. By blending the four funds, Retiready Stability gives you access to a broad mix of different types of investment, so you’re not reliant on the success of one type alone.
There’s no guarantee the fund will meet its objectives. The value of this investment can go down as well as up and investors may get back less than they invested.