Portfolio Strategy Information

Cautious Income | EUR & GBP

OBJECTIVE AND INVESTMENT POLICY

The main objective of the Core Cautious Income Portfolio (EUR and GBP) is to provide investors with a regular income paid quarterly (typically end of January, April, July, October). The portfolio also aims to preserve capital. It targets a distribution yield (not guaranteed) in excess of prevailing 10-year German Bund (EUR) or 10-year UK Gilt (GBP), after fees.

The portfolio seeks diversification within an unrestricted asset class through active asset management. Underlying investments typically consist of long-only UCITS compliant structures, including Collective Investment Schemes and ETFs, managed by established global asset managers. We believe a structured and disciplined investment process is central to our endeavour to deliver good returns. Our Investment Committee meets regularly to review and select individual funds within each of the various investment markets. This culminates in our recommended list of investments, from which the Core Cautious Income Portfolio is constructed and monitored, so as to take advantage of any tactical ideas and ‘special situations’ that may be appropriate to enhance performance or to return a consistent level of income in line with our main objective.

The prevailing asset allocation can be found in both the Monthly Investment Report as well as the Monthly Fact Sheet. This service attracts a cautious to moderate risk rating.

SERVICE DELIVERY OPTIONS

Our Core Portfolio strategies can be offered via Nominee Service (in-house account managed by Integra Private Wealth) or External Asset Management (EAM) (via selected banking partners), and on either an Advisory Service or Discretionary Service basis.

  • Nominee Service: Client assets held in Integra’s omnibus account for seamless execution and custody.

  • External Asset Management (EAM): Client accounts directly with partner banks, with Integra providing the management mandate.

  • Advisory Service: Integra provides personalised recommendations (reviewed quarterly); client approves execution.

  • DiscretionaryS ervice: Full mandate to Integra for execution within agreed risk parameters, minimising client administration.

This flexible structure ensures alignment with client preferences for control, custody, and efficiency.

FEE STRUCTURE

UPFRONT FEES

An upfront fee may be charged on any new placements to this service. The fee charged will be specified in the Investment Services Agreement provided before placing the investment and the fee will be deducted from the funds invested.

ON-GOING FEES

A management fee of 0.5% p.a. plus VAT and a nominee fee of 0.1% p.a. (in accordance with Investment Service Agreement) based on the daily average value of the total portfolio charged quarterly in arrears. Integra Private Wealth might receive rebates from underlying service providers based on the investments held in the portfolio. All these rebates are credited back to the client thus reducing the impact of fees on the portfolio. Unless otherwise stated, fees will be netted-off from any cash holdings in the portfolio before any distribution.

GENERAL RISKS

The value of any portfolio serviced by Integra Private Wealth may go down as well as up, positive returns are not guaranteed, and investors may get back an amount which is less than the money invested. Aside from macroeconomic factors that affect all investments to varying degrees, some of the unique factors that could lead to adverse returns include, but are not limited to:

  • Business risk: Uncertainty of dividend flows caused by the nature of the business of the issuers of stocks, bonds and other securities. For example, the stock price of automobile companies may suffer in the event of a downturn in consumer spending.

  • Financial risk: The uncertainty produced by how issuers finance their investments. For example, the government of an emerging economy that issued bonds denominated in US$ may find it more costly if US$ interest rates rise.

  • Liquidity risk: The ease/difficulty with which an investment can be converted to cash and the uncertainty of the price to be received.

  • Currency risk: The uncertainty introduced by the buying and selling of securities in a currency different from the investor’s own.

  • Country risk: The uncertainty of returns caused by changes in the political/economic environment in a country.

  • Market risk: Portfolios may take positions in traded instruments including listed securities. All securities present a risk of loss of capital.

  • Underlying collective investment schemes: Portfolios may have a substantial part of their investments in collective investment schemes. Accordingly the value of the underlying investments may be affected by the fees charged by these schemes.

  • Counterparty risk: The risk that the counterparty with whom you have entered a financial contract will default on its obligation or fail to settle the contract.

Disclaimer: This page is intended for information purposes only. All portfolios are designed following a thorough financial planning exercise to establish the financial objectives and risk attitude. Past Performance should not be taken as an indication of future performances. Portfolio values can go up as well as down.