Offering the simplicity and reassurance of knowing they’re built and governed by experts, these portfolios let savers invest in a value-for-money fund that matches their risk appetite.
The Core Portfolios focus on offering value while making it easy to save in a pension.
Benefits of Core Portfolios:
- Let savers choose the balance of risk and long-term growth potential that’s right for them.
- Uses Morningstar's asset allocation expertise.
- Hold mainly low-cost investments, designed to perform in line with the markets they track.
- Are backed by our Funds Promise.
You can choose from seven Core Portfolios, each of which is designed to match a different risk appetite.
How Core Portfolios work
Morningstar uses an asset allocation model to create the optimal strategic asset mix for each target risk level, and then tactically refines it to account for shorter-term expectations. Generally riskier investments offer better long-term growth potential, but they are also more likely to fall in value.
To keep costs low, the portfolios use mainly passively managed investments. These investments aim to produce returns broadly in line with the markets they track by mirroring the same investments, in the same proportions, as their benchmark.
Monitoring and rebalancing
Because the portfolios are backed by our Funds Promise, we check them regularly to see if they're meeting expectations. That means:
- We make asset allocation changes based on recommendations from Morningstar.
- We check if both the component investments and overall portfolios meet their objectives.
- We change the mix if needed to ensure the optimum asset mix.
There’s no guarantee that fund objectives will be met. The value of an investment may go down as well as up and investors may get back less than originally invested.