Stakeholders at Bestinvest
Bestinvest has special terms with Scottish Widows so you have more choice.
Normally investors are unable to access external funds
(non provider funds) and are forced to buy the providers' own fund
range.
Our clients can put up to 100% of their investments into
external funds, versus the normal 30% (with Scottish Widows). This
provides a greater level of choice and flexibility for our
clients.
Because Bestinvest believe that clients should have well
diversified portfolios we have created some asset models which are
designed to meet their requirements. There are four models to
consider and they are outlined below.
Defensive
This is effectively our pre-retirement asset model for those who
opt out of Scottish Widows automatically phasing into their Cash
Fund. It is a balanced portfolio with a substantial allocation to
defensive sectors such as quality bonds and hedge funds. The
minimum suggested timescale for such a portfolio should be 3 years;
those investing for less than 3 years may wish to consider the
Scottish Widows cash fund.
Defensive asset model
allocation
Defensive asset model allocation
| Fund |
Defensive |
Cautious |
Moderate |
Adventurous |
| SCWI European |
6% |
8% |
10% |
12% |
| SCWI Indexed Stock |
18% |
13% |
9% |
8% |
| SCWI North American |
6% |
9% |
12% |
15% |
| SCWI Property |
13% |
9% |
7% |
6% |
| SCWI SSgA Asia Pacific Ex Japan Equity
Index |
3% |
5% |
7% |
9% |
| SCWI SSgA Japanese Equity Index |
2% |
2% |
4% |
5% |
| SCWI SSgA Sterling Corporate Bond All Share
Index |
13% |
12% |
4% |
6% |
| SCWI SSgA UK Equity Index |
17% |
16% |
15% |
15% |
| SCWI Strategic Income Bond |
18% |
17% |
18% |
9% |
| SCWI UK Equity |
- |
9% |
14% |
15% |
| SCWI UK Fixed Interest Tracker |
4% |
- |
- |
- |
Cautious
This is a portfolio has significant equity exposure and is
diversified across alternative asset classes such as bonds,
commercial property and cash-like investments to help reduce
volatility. The minimum suggested timescale for such a portfolio
should be 4 years.
Cautious asset model
allocation
Cautious asset model allocation
| Fund |
Defensive |
Cautious |
Moderate |
Adventurous |
| SCWI European |
6% |
8% |
10% |
12% |
| SCWI Indexed Stock |
18% |
13% |
9% |
8% |
| SCWI North American |
6% |
9% |
12% |
15% |
| SCWI Property |
13% |
9% |
7% |
6% |
| SCWI SSgA Asia Pacific Ex Japan Equity
Index |
3% |
5% |
7% |
9% |
| SCWI SSgA Japanese Equity Index |
2% |
2% |
4% |
5% |
| SCWI SSgA Sterling Corporate Bond All Share
Index |
13% |
12% |
4% |
6% |
| SCWI SSgA UK Equity Index |
17% |
16% |
15% |
15% |
| SCWI Strategic Income Bond |
18% |
17% |
18% |
9% |
| SCWI UK Equity |
- |
9% |
14% |
15% |
| SCWI UK Fixed Interest Tracker |
4% |
- |
- |
- |
Moderate
This is a largely equity based portfolio with significant
exposure to overseas equities. This asset model is more appropriate
for investors who are planning their retirement in over 5 years
time or longer term investors who are more risk averse in their
attitude to investing.
Moderate asset model
allocation
Moderate asset model allocation
| Fund |
Defensive |
Cautious |
Moderate |
Adventurous |
| SCWI European |
6% |
8% |
10% |
12% |
| SCWI Indexed Stock |
18% |
13% |
9% |
8% |
| SCWI North American |
6% |
9% |
12% |
15% |
| SCWI Property |
13% |
9% |
7% |
6% |
| SCWI SSgA Asia Pacific Ex Japan Equity
Index |
3% |
5% |
7% |
9% |
| SCWI SSgA Japanese Equity Index |
2% |
2% |
4% |
5% |
| SCWI SSgA Sterling Corporate Bond All Share
Index |
13% |
12% |
4% |
6% |
| SCWI SSgA UK Equity Index |
17% |
16% |
15% |
15% |
| SCWI Strategic Income Bond |
18% |
17% |
18% |
9% |
| SCWI UK Equity |
- |
9% |
14% |
15% |
| SCWI UK Fixed Interest Tracker |
4% |
- |
- |
- |
Adventurous
This asset model is suitable for investors with a long term time
(over 7 years) horizon to retirement and are happy to take a higher
level of risk. It is a largely equity based portfolio with a
significant exposure to overseas equities. The aggressive approach
means there is a greater potential for volatility.
Adventurous asset model
allocation
Adventurous asset model allocation
| Fund |
Defensive |
Cautious |
Moderate |
Adventurous |
| SCWI European |
6% |
8% |
10% |
12% |
| SCWI Indexed Stock |
18% |
13% |
9% |
8% |
| SCWI North American |
6% |
9% |
12% |
15% |
| SCWI Property |
13% |
9% |
7% |
6% |
| SCWI SSgA Asia Pacific Ex Japan Equity
Index |
3% |
5% |
7% |
9% |
| SCWI SSgA Japanese Equity Index |
2% |
2% |
4% |
5% |
| SCWI SSgA Sterling Corporate Bond All Share
Index |
13% |
12% |
4% |
6% |
| SCWI SSgA UK Equity Index |
17% |
16% |
15% |
15% |
| SCWI Strategic Income Bond |
18% |
17% |
18% |
9% |
| SCWI UK Equity |
- |
9% |
14% |
15% |
| SCWI UK Fixed Interest Tracker |
4% |
- |
- |
- |
Apply for a Stakeholder pension
Choosing a model
The model you choose will be dependent on you investment
style. Your investment style is linked to the level of
risk that you are willing to.
Higher risk portfolios tend to have more exposure to
equities, including overseas equity exposure; these
sectors provide higher potential returns but with greater levels of
risk. Lower risk portfolios have increased exposure to investments
such as bonds, cash and hedge funds; taking on a lower risk tends
to reduce potential returns.
There is always a trade-off between risk and
return. If one investment appears to offer a significantly
higher return than another it is almost always because it involves
more risk. When you select a portfolio you should try to ensure
that the risk is appropriate for your circumstances. Your actual
return could be higher, or lower, than your objective. The level of
risk that individuals take is often linked to the length of time
the money is going to be invested. This is because volatility can
be evened out over time.