Conservative
Designed for cautious investors seeking modest real returns.
Who Is This Strategy For?
This strategy is ideal for cautious investors looking to preserve wealth while keeping ahead of inflation in a measured, risk-aware way. It avoids extremes while still offering the potential for capital growth.
- Seeking financial stability with low volatility
- Short to medium-term investment horizon
- Low risk tolerance
- Part of Core Wealth planning
- Desire modest, consistent returns
Asset Allocation Guidelines
The strategy’s allocation is based on a long-term neutral policy of 75% stabiliser assets and 25% growth assets, with the flexibility to move ±15% based on market conditions.
- Stabiliser Assets: 60%–90% — UK gilts, sovereign debt, cash
- Growth Assets: 10%–40% — Global equities, credit, high yield
Philosophy & Features
The Conservative Strategy aims to preserve capital and deliver modest real growth over a 3–10-year horizon. It combines stabilising assets with a cautious allocation to return-seeking investments, offering low volatility and steady progress.
- Targets CPI + 1% net of fees, aligned with the ARC Cautious Private Client Index
- Combines gilts, investment-grade bonds, cash, and select equity and credit exposure
- Portfolio includes both direct securities and collective vehicles (ETFs, funds, bonds)
- Guided by macroeconomic outlook with active tactical shifts as conditions evolve
- Typically holds 5–30 diversified holdings to reduce concentration risk
- Portfolio exposures reviewed through “look-through” analysis at asset class level
- Suitable for intergenerational wealth or capital not required for 10+ years
ARC 3D Award
The ARC 3D Award indicates Tacit Investment Management’s engagement with ARC’s Investment Manager Research Programme and fulfilment of the due diligence criteria. It is not a rating or endorsement of suitability for specific clients but a validation of our commitment to transparency.
Understanding Risk
We use a 7-Point Scale to help assess and match our investment strategies to your individual risk tolerance. Each strategy is mapped to a point on this industry-recognised scale, from 1 (Very Low Risk) to 7 (Very High Risk), so you can clearly understand the expected level of risk and potential volatility.
Key Risks
The strategy aims to preserve capital, but market conditions may lead to fluctuations in the value of your investment. There is no guarantee that returns will exceed inflation or that income will be stable.
- Market Risk – Modest volatility expected from limited equity and credit exposure
- Inflation Risk – Real returns are targeted but not guaranteed
- Interest Rate Risk – Changes in interest rates can affect bond and fixed income pricing
- Liquidity Risk – Some instruments may be less liquid in challenging market conditions
How We Manage the Portfolio
Every Tacit strategy is actively managed using a clear, disciplined approach that balances research, experience and long-term thinking.
We monitor portfolios continuously and make adjustments when needed, always within set guidelines. Our decisions are guided by in-house research into the global economy, markets, and investor behaviour.
Rather than chasing trends or taking unnecessary risks, we focus on steady progress, smart diversification, and protecting your capital.
Our approach includes:
- Regular adjustments based on market conditions and your strategy’s goals
- Careful balance between growth assets (like equities) and stabilisers (like bonds and cash)
- Strategies built with a mix of direct investments, bonds, and funds (e.g. ETFs)
- Risk managed by how assets behave together—not just how many are held
- Defined limits to how much we can shift each portfolio, to stay aligned with your goals
Our aim is simple: to help you grow and protect your wealth, with clarity and confidence.
Document Downloads
Further Reading & Downloads
For more detailed information about this strategy and how it could work for you, please explore the following downloadable resources.
Monthly Factsheet
Download the latest factsheet for the Tacit Conservative strategy
ARC PCI Factsheet
Download the latest ARC PCI quarterly factsheet for the GBP Cautious universe
Risk Warning & Disclaimer
The value of investments and the income derived from them can fall as well as rise. You may not get back the full amount you invested. Past performance is not a reliable indicator of future results. The information on this page does not constitute investment advice or a personal recommendation. Any investment decisions should be made based on your individual circumstances and objectives, and in consultation with a qualified financial adviser.
Tax treatment depends on individual circumstances and may change in the future. Tacit Investment Management does not provide tax advice. All investments carry risk, and you should ensure you fully understand the risks involved before proceeding.
Begin your journey
If you are looking for a conservative, low-volatility strategy that preserves wealth while delivering modest real returns, we’d be delighted to explore how we can support your financial goals.
Tell us a little about yourself using the form below, and a member of our team will be in touch to discuss your goals and how we might support them.
Prefer to speak directly? Call us on 0203 051 6450, we’d be happy to hear from you.
