If you’re new to investing, the volume of information can seem daunting. Getting up to speed with how things work can be a challenge. It can take time to put together a portfolio that offers you diversification across different types of investments, while settling on a level of risk and reward that you’re comfortable with. Ready-made Investments offer a quick, efficient and cost-effective way to build a diversified portfolio.
What you'll learn:
- How Ready-made Investments work
- How they aim for different levels of risk and reward
- The importance of asset allocation and diversification
If you’re new to investing, the volume of information can seem daunting. Getting up to speed with how things work can be a challenge. It can take time to put together a portfolio that offers you diversification across different types of investments, while settling on a level of risk and reward that you’re comfortable with.
Ready-made Investments offer a quick, efficient and cost-effective way to build a diversified portfolio. Even if you’ve invested before, if you’d prefer to let Barclays experts manage your investments, once you’ve identified the investment that corresponds to your own goals and risk appetite, Ready-made Investments could be just what you’re looking for.
Why choose Barclays?
If a ready-made approach appeals to you, there are several products available on the market, so why choose Barclays?
Barclays offers a range of ready-made investments – some aimed at investors who are primarily seeking to earn a regular income from their investments and some aimed at those looking for capital growth.
Once you’ve decided on the risk and reward balance you’re comfortable with and you’ve selected the appropriate Ready-made Investment, Barclays Investment experts will manage your investment in line with the features described in its Key Investor Information document.
Partnering with industry experts
Ready-made Investments for growth, Barclays has partnered with asset management experts BlackRock, who are leaders in ‘passive’ portfolio management. BlackRock has been appointed to implement our asset allocations for growth investments.
Passive investments aim to match the performance of an index they’re tracking, unlike an ‘active’ approach in which a fund manager actively aims to beat it. Passive investments usually have much lower fees.
Barclays Ready-made Investments for income give you exposure to a wide range of leading specialist third-party fund managers, including fund managers from around the world whose services are usually available only to institutional, rather than individual, investors. Our in-house fund manager research team is responsible for selecting some of the world’s best investment firms, which they consider to be suited to implementing the asset allocation. It’s an effective combination of Barclays investment philosophy and know-how, with industry-leading management expertise.
Diversification and why it’s important
Investing in just one type of investment or ‘asset class’ is risky. If that particular asset class performs well, you’re likely to see good returns, but if it performs badly, your whole investment is at risk.
One way to protect yourself from this risk is to also invest in other types of assets that may perform well when others don’t and vice versa. Investing in a range of different types of investments can help you avoid too much exposure in any one area. It’s what’s known as diversification. Ready-made Investments aim to give you a diversified portfolio that spreads your investments across different types of assets and different geographies.
Barclays believes a thoughtfully designed, diversified portfolio is usually the best way to achieve long-term goals. It increases the sources of potential for returns to include bonds and equities from both developed and emerging economies, while delivering the benefits of diversification to reduce the overall risk of investing.
The Barclays approach to asset allocation
Asset allocation is about how much of your money is invested in which types of assets. The process for Ready-made Investments draws on Barclays’ investment philosophy and incorporates a deep understanding of how global markets work. Our investment researchers take a view of how they think the markets will perform over a market cycle, typically 5 to 10 years. These forecasts and other investment processes are combined to form the ‘strategic asset allocation’ that’s used to build Ready-made Investments.
Once you’re invested, our experts follow the economic and political developments that can lead to shorter-term opportunities and risks. By monitoring day-to-day developments in the markets and altering the asset allocation accordingly, they can make sure it stays true to each fund’s investment objective. This process is known as our ‘tactical asset allocation’.
Expertise and insight
When you choose Barclays, you’re choosing many years of market expertise and the ability to work with investment professionals who would otherwise be inaccessible. Ready-made Investments combine modern investment management with Barclays’ expertise in investment and global markets.
Things to remember
Remember that like all investments, Ready-made Investments are designed for the long-term, so you should be thinking about holding your investment for at least five years. The value of your investments can fall as well as rise – there’s always a chance of losing money and you may not get back what you put in, so never invest what you can’t afford to lose. If you're unsure about this, or any other investment’s suitability for you, you should seek independent advice. We don’t offer personal advice.
If you’d like to find out more about Ready-made Investments or explore the different risk profiles, it’s easy to get started.