Offering the simplicity and reassurance of knowing they’re built and governed by experts, these seven risk-target portfolios let savers invest in a value-for-money fund that matches their risk appetite. The portfolios benefit from Morningstar’s asset allocation expertise, and hold a mix of funds designed to keep costs low. All customers need to do is agree, and regularly review, their risk appetite with their adviser.
- Let savers choose the balance of risk and long-term growth potential that’s right for them
- Benefit from 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, so we monitor them and make any changes we need to.
How the 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.
To keep costs low, the portfolios use mainly passively managed funds. These funds 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
All our fund ranges are monitored to check we’re keeping our Funds Promise, but for our Core portfolios we make extra commitments:
- We make asset allocation changes based on recommendations from Morningstar
- We check if both the component funds and overall portfolios meet their objectives
- We change the mix quarterly 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.