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.