Echo model portfolio - medium-term growth, higher risk

Who is it for: 
  • Investors looking to grow their capital over at least ten to fifteen 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 a nest egg for grandchildren via a JISA.
  • Investors in their early fifties with adequate pension provision who want to make extra savings for their retirement in an ISA.
What it looks like: 
Fund Role in portfolio
Ardevora Global Equity Invests in undervalued companies globally, but is also able to ‘short’ shares that the managers believe will go down in value. View Factsheet
RIT Capital Partners Has a widely diversified, international portfolio across a range of asset classes, both quoted and unquoted. View Factsheet
CF Miton UK Value Opportunities Invests in UK companies of all sizes which its managers believe are undervalued and likely to produce superior capital growth. View Factsheet
F&C Global Smaller Companies Provides exposure to faster growing smaller companies worldwide, including in the UK. View Factsheet
HSBC FTSE All Share Index Ret Acc Tracks the performance of the FTSE All Share Index. View Factsheet
Old Mutual Global Equity Highly diversified global fund that adopts a pragmatic and multi themed approach. View Factsheet
Veritas Asian Manager Ezra Sun has generated strong performance over a number of years. View Factsheet
Why were these funds selected: 

At the base of the portfolio is a holding in HSBC FTSE All Share Index fund which 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. CF Miton UK Value Opportunities aims to provide exposure to undervalued companies that produce strong growth, although we have reduced our holding because of a manager change. The largest part of the portfolio is invested in four global funds with different strategies to provide diversification and maximum scope for gains. Old Mutual Global Equity has a highly diversified portfolio with no style bias, and invests where the managers see prices rising. Ardevora Global Equity invests in undervalued companies globally, but is also able to ‘short’ shares that the managers believe will go down in value. RIT Capital Partners has a widely diversified, international portfolio across a range of asset classes, while F&C Global Smaller Companies focuses on faster growing smaller businesses. To top it off, there is a holding in Veritas Asian. It's arguably a riskier option but manager Ezra Sun has generated strong performance over a number of years and the fund has been a winner in our annual awards for the past two years.

* 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 Caledonia Investments

  • Buy RIT Capital Partners

    We believe this trust will be a good core holding for the higher risk portfolios.

2016

  • Sell BlackRock World Mining

    Trust's performance hit by failed investments and falling commodity prices.

  • Buy Ardevora Global Equity

    To gain from fund's global approach and the fact that it can invest for the long term but also sell stocks short in order to take advantage of falling values.

  • Reduce CF Miton UK Value Opportunities

    Holding reduced because of manager change.

  • Increase Old Mutual Global Equity

    To boost the portfolio’s global exposure and increase relatively small portfolio holding of this solid performer.

  • Increase Ardevora Global Equity

    To boost the portfolio’s global exposure and increase relatively small portfolio holding of this solid performer.

2015

  • Sell Legal & General UK Alpha

    Returns more erratic than expected.

  • Buy CF Miton UK Value Opportunities

    To benefit from managers who have shown a talent for finding undervalued companies which produce strong growth.

2014

  • Sell Monk

    Disappointing performance.

  • Buy Caledonia

    To gain from global exposure, high discount to NAV and significant exposure to unquoted companies.

  • Sell Templeton Emerging Markets

    Disappointing performance.

  • Buy JPMorgan Global Emerging Markets Income

    To maintain exposure to emerging markets but through a trust which invests in stable companies that pay a growing dividend which can be reinvested by growth investors.

  • Sell M&G Global Basics

    Disappointing performance and change of manager.

  • Buy BlackRock World Mining

    To benefit from the potential turnaround in resources sector as demand recovers.

2013

2012

  • Buy F&C Global Smaller Companies

    To benefit from faster growing smaller companies worldwide.

  • Buy HSBC FTSE All-Share Index

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

  • Buy Legal & General UK Alpha

    To gain exposure to undervalued, and potentially faster growing UK companies.

  • Buy M&G Global Basics

    Provides exposure to manufacturing and commodity companies worldwide.

  • Buy Monks

    To provide global exposure and benefit from the trust's significant exposure to Asia Pacific and Emerging Markets.

  • Buy Stewart Asia Pacific Leaders

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

  • Buy Templeton Emerging Markets

    To gain from the faster growth of the world's emerging economies.

Last updated: 
1 July 2017