UK Gilt Strategy
For capital preservation, liquidity and near-term certainty
Who Is This Strategy For?
This strategy is suited to highly risk-averse investors who prioritise capital preservation and liquidity above return. It is ideal for those with short-term spending plans or needing a secure reserve within their overall portfolio.
- Prioritising capital security over return
- Very low risk tolerance
- Short investment horizon (0–5 years)
- Need for liquidity and stability
- Using as a defensive component in a broader portfolio
Asset Allocation Guidelines
This strategy is fully focused on stabiliser assets, with no allocation to growth assets. It aims to minimise capital risk and interest rate sensitivity.
- Stabiliser Assets: 100% — Short-duration UK gilts, sovereign debt, cash
- Growth Assets: 0% — No equity or credit exposure
Philosophy & Features
The UK Gilt Portfolio is built for capital preservation over short-term timeframes, focusing on stability, liquidity, and sovereign credit quality. It is suitable for clients with very low risk tolerance and near-term spending needs.
- Targets Cash + 0% net of fees, benchmarked to the ARC Cautious Private Client Index
- Invests solely in high-quality, short-duration UK government bonds and cash
- Designed to minimise volatility and avoid equity or credit market risk
- Uses direct fixed income instruments for transparency and control
- Actively managed to ensure liquidity and sensitivity to interest rate shifts
- Ideal for clients requiring low-risk reserves or preparing for defined outgoings
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
As with all investments, the value of your capital may fall as well as rise. While this strategy is designed to minimise volatility, it is not risk-free, and income or capital may be impacted by market conditions.
- Market Risk – Typically low, but gilt values can fluctuate with market sentiment
- Interest Rate Risk – Rising rates may reduce the value of existing fixed income holdings
- Inflation Risk – Returns may not keep pace with inflation, leading to erosion of real value
- Liquidity Risk – Unlikely but possible in times of extreme 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
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 seeking a low-risk strategy designed to preserve capital and provide liquidity for short-term needs, we’d be pleased to discuss how our Gilt Portfolio might support your objectives.
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.
