Many of Hamilton Hindin Greene’s clients would consider themselves to be conservative investors. These are investors who are happy to take on some risk (in order to beat bank deposit rates, for example), but on the whole are not inclined to take too much risk.
Most retirees would fall towards the conservative end of the risk spectrum. However, many who have not sort advice regarding asset allocation will have portfolios that are anything but conservative.
Portfolios that have included exposure to the share market have performed very well in recent years. This strong performance from equities has resulted in many portfolios being over-exposed to the share market.
Investors who have not asked Hamilton Hindin Greene to manage their asset allocation need to keep one eye on the asset allocation for their portfolios to ensure they are not taking more risk than they would otherwise be comfortable with.
Hamilton Hindin Greene recommends that conservative investors should have an asset allocation as below.
There is no one size fits all strategy when it comes to investing, but if you consider yourself to be conservative, and your portfolio differs materially from the asset allocation above, then Hamilton Hindin Greene recommends you contact your advisor to discuss your options.
A Conservative Portfolio is designed to provide the investor with income. It aims to preserve capital and is suitable for the more risk-averse investor. The portfolio is invested primarily in fixed interest securities with a small allocation to other asset classes. It is suitable for investors who wish to achieve average returns for average volatility.