Delta model portfolio - short term growth, higher risk

Who is it for: 
  • Investors looking to grow their capital over at least five to ten years, who have other secure savings, and can afford to lose a significant portion of this capital under a worst case scenario.
  • Could be considered by investors wishing to accumulate an extra nest egg in an ISA who are unsure about when the capital will be required.
  • Investors approaching retirement with ample pension provision who want to make extra savings may also consider this option.
What it looks like: 
Fund Role in portfolio
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
Rathbone Income A steady performer investing for income in UK companies, dividends can be reinvested by growth investors. View Factsheet
Jupiter Asian Income Invests in large and mid-sized companies in the region which the managers believe are well managed and resilient. View Factsheet
Witan Investment Trust plc Highly diversified global investment trust which uses the specialist skills of a range of external managers. View Factsheet
Why were these funds selected: 

Providing the portfolio with a solid base are three UK invested funds, with different approaches. Royal London Sustainable Diversified Trust invests in a mixture of UK bonds and equities. Although bonds do not offer the same long term growth prospects as equities, they help to offset volatility. We believe the ability of this fund to invest in overseas equities will help its performance. HSBC FTSE All Share Index provides investors with broad exposure to UK companies of all sizes and, being a passive fund, this also avoids the risk of choosing the wrong investment manager. Rathbone Income is actively managed with the aim of providing steady growth and income, dividends can be reinvested by growth investors.

To spread risk further and extend the scope for potential gains, two internationally invested funds, Fundsmith Equity, and Witan are also included. Each is managed in a somewhat different way. Fundsmith Equity’s manager picks strong companies, while Witan delegates parts of its portfolio to external managers to get the best returns for investors. And finally Stewart Investors Asia Pacific Leaders has been replaced by Jupiter Asian Income. It is a relatively new fund launched in March 2016 and is run by Jason Pidcock who has a strong track record in the sector. It currently yields 3.8 per cent, which is much higher than rivals.

* 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 Stewart Investors Asia Pacific Leaders

  • Buy Jupiter Asian Income

    Swapped the Stewart fund for Jupiter Asian Income because of its investment discipline its focus on yield entails

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 Newton Real Return

    Pedestrian performance.

  • Buy Kames Ethical Cautious Managed

    To gain from this fund's greater growth potential but still relatively low risk approach

2015

  • Sell Investec Cautious Managed

    Manager's contrarian approach had produced disappointing performance.

  • Buy Rathbone Income

    A steady performer investing for income in UK companies which can be reinvested by growth investors.

2014

2013

  • Sell Troy Spectrum

    Disappointing performance.

  • Buy Fundsmith Equity

    To gain from fund's exposure to large global companies with strong brands.

2012

  • Buy HSBC FTSE All-Share Index

    To provide broad exposure to UK companies of all sizes without manager risk.

  • 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.

  • Buy Stewart Inv Asia Pacific Leaders

    To provide exposure to fast growing Pacific region via investment in large and mid-sized companies.

  • Buy Troy Spectrum

    To provide global diversification gained through fund of funds approach, with emphasis on capital preservation.

  • Buy Witan

    To provide global diversification gained through fund of funds approach.

Last updated: 
1 July 2017