What are the risks associated with Yield+?
Yield+ is a low-risk portfolio (Risk Level 1), but its value can still go up or down. The main risks are:
- Interest rate risk: When interest rates rise, the portfolio’s value may fall.
- Credit risk: The portfolio invests in bonds issued by governments and companies, which may be unable to make their payments.
- Risk of loss on withdrawal: Rising interest rates push down the prices of the bonds the portfolio holds, which lowers its value. If you withdraw while prices are down, you could get back less than you invested.
To reduce these risks, Yield+ invests in short-duration bond funds, which are less affected by interest rate changes.
Is my capital guaranteed with Yield+?
No, Yield+ is not capital guaranteed. It is an investment portfolio, not a bank deposit, so its value can go up or down. The portfolio holds short-duration bond funds, and their value can change when interest rates move. With an overall duration of about one year, the portfolio is less sensitive to interest rate changes, but it is still affected by them.
