The Deposit Alternative Portfolio

Introduction

Private investors typically turn to fixed term deposits with a bank or building society when they seek a return on cash without risk of loss over even a short period. Whilst returns on deposits are not high (on average 2% above inflation) and investors have to wait for the deposit to mature to receive cash, the capital has been perceived to be safe.

In the present environment, the security of even the largest bank can no longer be taken for granted and ready access to cash is increasingly desirable.

In response to today's challenging times, Prospect has designed an investment strategy that offers higher expected returns than deposits, after fees, with a minimal risk of loss over any 1 month period. This strategy takes advantage of market inefficiencies and specialist skills to achieve higher returns than would normally be expected for the low level of risk taken. Importantly, the investment is not linked to equity markets and does not involve derivatives (e.g. options) to reduce risk.
 

The Deposit Alternative Portfolio

The portfolio is designed to provide the following investment characteristics:

• A target return of 4 - 6% per annum after fees.
• Low volatility - a predictable, positive, monthly return.
• Broad diversification across a wide range of low risk investments.
• Minimal risk of loss through default.
• Liquidity - the expected ability to realise the bond part of the portfolio within 3 days and the balance within 6 weeks.

The minimum portfolio size applicable to this investment is £75,000. For further information please contact Matthew Hunt on 0207 392 2811 or email matthew.hunt@prospectwealth.co.uk.