Capital Preservation

Investment Objective

To generate consistent and stable income while preserving capital.

Investors are usually risk averse and do not want any portfolio volatility.

Asset Allocation

100% allocation to fixed income instruments

Risk Rating

Low at 1.

There is no exposure to equity securities

Income

Investment Objective

To preserve the capital without much consideration for real returns.

Investors would like to generate current income with little or no volatility (i.e. at low risk).

Asset Allocation

A strategic allocation of 25% in equities and 75% in fixed income instruments.

Risk Rating

Low at 2, due to minimal exposure to equity securities.

Income and Growth

Investment Objective

To achieve growth and income.

Investors wants capital growth and income with minimal volatility (i.e. fair risk).

Asset Allocation

A strategic allocation of 50% in equities and 50% in fixed income instruments.

Risk Rating

Moderate at 3.

The portfolio may experience fluctuations in value due to its exposure to equity.

Nevertheless, its volatility is moderated by a fair allocation to fixed income securities.

Growth

Investment Objective

To achieve capital growth in the long term.

Investors are willing to accept moderate swings in asset prices to achieve growth

Asset Allocation

A strategic allocation of 70% in equities and 30% in fixed income instruments.

Risk Rating

High at 4.

The portfolio may experience fluctuations in value due to its exposure to equity.

Nevertheless, its volatility is moderated by a fair allocation to fixed income securities.

Aggressive Growth

Investment Objective

To achieve above average growth (or high, real return) in the long term.

Income is of little concern.

Investors are willing to accept a significantly higher level of portfolio volatility (i.e. substantial risk) for the possibility of higher investment returns in the long term.

Asset Allocation

Typically has a strategic allocation of 90% in equities and 10% in fixed income instruments.

Risk Rating

Very high at 5, because of high exposure to equity securities.