Alpha model portfolio - short-term growth, medium risk

Who is it for: 
  • Investors looking to grow their capital over at least five to ten years, who can afford to lose some of their capital under a worst case scenario.
  • It may suit investors with children seeking to build up capital for their further education within an Isa.
  • Investors in their fifties building up extra capital within an ISA may also wish to consider this option.
What it looks like: 
Fund Role in portfolio
Artemis Monthly Distribution Aimed mainly at income-seekers this fund also offers accumulation shares. Its yield is attractive and the compounding effect of this income will help the portfolio to provide a steady return. View Factsheet
Fundsmith Provides exposure to large global companies with strong brands. View Factsheet
HSBC FTSE All Share Index Ret Acc Tracks the performance of the FTSE All Share Index. View Factsheet
Royal London Sustainable Diversified Trust Invest in growing, innovative companies having a positive impact on society. View Factsheet
Lindsell Train Global Equity Targets absolute returns by focusing on sustainable businesses around the world. View Factsheet
Fidelity Moneybuilder Balanced Invests in a mixture of equities and bonds. View Factsheet
Why were these funds selected: 

With the aim of protecting investors from excessive volatility, this portfolio has three core holdings which each invests in a mixture of bonds and equities - Artemis Monthly Distribution, Fidelity Moneybuilder Balanced and Royal London Sustainable Diversified Trust. Bonds tend to fluctuate less in value than shares, while the UK equity exposure in these funds provides growth potential. The managers of the funds adjust their holdings in each type of security in response to market conditions.

The portfolio also holds the HSBC FTSE All Share Index fund to gain broad exposure to UK companies of all sizes and, being a passive fund, this also avoids the risk of choosing the wrong investment manager. To spread risk further two internationally invested funds, Fundsmith Equity and Lindsell Train Global Equity, are included. The managers of these two funds are highly experienced and focus on well established, stable companies.

* Charts show bid-to-bid performance with income reinvested.

Please note that past performance is not a guide to future performance. Fund performance data does not take into account fees and expenses which are specific to individual plans.

Please be aware of the risks involved. Money Observer does not provide investment advice. You should choose investments to suit your personal circumstances and attitude to risk. If you are at all unsure you should seek advice.

Where to get it: 

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Timeline: 

2017

  • Sell Kames Ethical Cautious Managed

  • Buy Royal London Sustainable Diversified Trust

    We have stuck with a similarly cautious mixed asset fund but we believe the ability of this fund to invest in overseas equities will help its performance.

2016

  • Sell Premier Defensive Growth

  • Buy Artemis Monthly Distribution

    Attractive yield and compounding effect will help to provide a steady return.

  • Sell Newton Real Return

  • Buy Kames Ethical Cautious

    Has good record of providing consistent, lower risk returns.

2015

  • Sell Investec Cautious Managed

    Manager's contrarian approach had produced disappointing performance

  • Buy Lindsell Train Global Equity

    To provide international diversification and exposure to strong, profit making global businesses.

2014

  • Sell Artemis Strategic Assets

    Disappointing performance.

  • Buy Premier Defensive Growth

    Better track record of delivering positive returns.

2013

  • Sell Baring Global Bond

    Poor performance.

  • Buy Fidelity Moneybuilder Balanced

    Invests in both equities and bonds therefore providing stability but with greater growth potential.

  • Sell Kames Inflation Linked Bond

    Low inflation, lack of growth potential.

  • Buy HSBC FTSE All Share Index tracker

    Equities seen as offering greater growth potential and better long term inflation protection.

  • Sell M&G Strategic Corporate Bond

    Bonds no longer seen as offering sufficient growth potential.

  • Buy Fundsmith Equity

    To provide international diversification and exposure to strong, profit making global businesses.

2012

  • Buy Baring Global Bond

    For stability and diversification.

  • Buy Kames Inflation Linked Bond

    For inflation protection.

  • Buy M&G Strategic Corporate Bond

    To provide a stable core and modest growth.

  • Buy Artemis Strategic Assets

    To provide absolute returns in all market conditions.

  • Buy Investec Cautious Managed

    To provide a stable core and modest but consistent returns.

  • Buy Newton Real Return

    To provide absolute returns in all market conditions.

Last updated: 
16 January 2017