The PanDYNAMIC Funds offer a choice of four risk and return options: Defensive, Balanced, Growth and Aggressive. We seek to match risk to an investor’s requirements. Risk appetite is measured in terms of maximum tolerance of loss while return benchmarks are linked to multiples of cash returns.
The portfolios are carefully constructed using appropriate asset classes for each Fund’s stated risk level. Detailed back-testing and performance simulations are used to verify that the Fund is likely to match the stated risk parameters. The full range of asset classes and sub-classes includes bonds, equities, listed property, commodities and, of course, cash.
A summary of the characteristics of each Fund is shown in the table below, together with the core weightings in each asset class. The table also states the performance benchmarks and an indicative level of risk during normal market conditions. The range of assets which may be included in each Fund is shown in the Range of Asset Classes page.
We will seek to mitigate risk in difficult markets by holding more cash and avoiding riskier assets. The Funds target rates of return above inflation over the longer term, coupled with a lower risk of loss than comes from remaining fully invested at all times. Therefore their performance will not necessarily track the rise (or fall) of any specific index.
