Acorn Life Cautiously Managed

The Cautiously Managed Fund invests mainly in euro-denominated fixed income assets, including government, agency, supranational and corporate bonds. It also holds a smaller amount in other assets such as equities and deposit-type assets. The fund is designed to be broadly diversified across asset classes, markets and sectors.

The Cautiously Managed Fund may suit investors who want only modest growth and are uncomfortable with large falls in value. It is described as a low risk fund and is expected to be more stable over the longer term than funds that invest mostly in equities. It is aimed at investors with a short to medium-term minimum investment horizon.

The Cautiously Managed Fund spreads its investments across different asset classes, global markets and sectors rather than relying on one area. That diversification can help reduce risk because weak performance in one holding may be offset by another. It also keeps most of the portfolio in fixed income assets, which are generally less volatile than shares.

The Cautiously Managed Fund is exposed to market risk and currency risk. Market risk means the value of the fund can go up or down if bond, share or other asset prices move. Currency risk means that if investments are held in different currencies, exchange-rate changes can reduce returns when they are converted back into the fund’s currency.

The Cautiously Managed Fund is managed by HSBC Global Asset Management (UK) Limited, the investment solutions provider of the HSBC Group. The manager decides how much to allocate to each asset based on its outlook for individual assets and the global economy. This means the fund’s mix can change over time as views change.