Real Return
Aiming to preserve purchasing power with controlled risk
Who Is This Strategy For?
This strategy suits investors who want to preserve purchasing power while achieving real returns over the medium term. It’s designed for those seeking balance between growth and stability without taking on full equity risk.
- Concerned about inflation eroding wealth
- Medium-term investment horizon (5–10 years)
- Moderate risk tolerance
- Prefer diversified exposure with downside protection
- Ideal for Core Wealth or cautious Generational Wealth planning
Asset Allocation Guidelines
The strategy targets a balanced allocation between stabiliser and growth assets to protect against inflation while maintaining downside control. The neutral allocation is 50/50, with a tactical range of ±15%.
- Stabiliser Assets: 35%–65% — Gilts, sovereign debt, strategic cash
- Growth Assets: 35%–65% — Global equities, credit, high yield, diversifiers
Philosophy & Features
The Real Return Strategy focuses on maintaining and growing purchasing power over time, balancing capital preservation with exposure to real-return assets. It’s suited for clients who want growth above inflation with controlled risk.
- Aims for CPI + 1% net of fees, benchmarked to the ARC Balanced Private Client Index
- Allocates across gilts, fixed income, global equities, credit, and diversifying strategies
- Combines direct securities and select collectives to balance cost, risk and access
- Uses active macro-driven tilts to adjust to inflation, rates, and market regime shifts
- Seeks diversified return sources to cushion market drawdowns
- Portfolio construction monitored using forward-looking and risk-based models
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
While the strategy targets growth above inflation, capital is at risk and returns are not guaranteed. The diversified nature reduces risk but cannot eliminate it.
- Market Risk – Moderate fluctuations in portfolio value expected
- Inflation Risk – Real return targets may not be met in all environments
- Interest Rate Risk – Exposure to fixed income instruments can be sensitive to rate changes
- Currency Risk – Returns may be affected by foreign exchange movements in global assets
- Liquidity Risk – Some holdings may be less liquid during market stress
How We Manage the Portfolio
All Tacit strategies are actively managed using a disciplined, research-led investment process that combines top-down macroeconomic insight with structured risk management. Our approach is designed to adapt to changing market conditions while remaining anchored in long-term objectives.
- Portfolios are monitored continuously and adjusted on a discretionary basis within defined asset allocation ranges
- Tactical shifts are informed by in-house macroeconomic analysis, including indicators such as corporate earnings, market liquidity, sentiment, and valuations
- Diversification is assessed through correlation analysis, focusing on effective risk spreading rather than number of holdings
- Each strategy is managed within strategic allocation guardrails, with a neutral asset mix and defined minimum/maximum exposure to growth and stabiliser assets
- Portfolios are constructed using a combination of direct securities, bonds, and collective vehicles (e.g. ETFs, funds), chosen to express views across asset class, size, style, sector, region and theme
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 Real Return 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’re aiming to protect purchasing power and grow your wealth steadily over time, our Real Return Strategy could be a strong fit. Let’s discuss how we can help bring structure and clarity to your investment planning.
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.
