Investment management: Portfolio examples
These two portfolios show how different investors’ priorities and preferences translated into different portfolios, with performance information.
Example A:
Riding the waves
The graph shows the performance of an SG Wealth Management client’s portfolio from July 2008, when the UK stock market peaked, to early June 2010.
This investor was prepared to accept some risk in the pursuit of higher returns. As a result, he did suffer a ‘paper loss’ during the market turbulence that accompanied the credit crunch. However, because his portfolio held a balance of different assets other than shares, his performance stayed ahead of the FTSE All Share Index throughout.
Example B:
Shelter from the storm
This graph shows the performance of a different SG Wealth Management investor during the same period, July 2008–June 2010.
This investor had a much more cautious attitude to risk than Investor A, and his portfolio was structured accordingly. He experienced little or no loss throughout the volatile period.
Please note that past performance is no guarantee of future performance and the value of your investments may go down as well as up.