Foxtrot model portfolio - long-term growth, higher risk
- 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.
|Fund||Role in portfolio|
|BlackRock World Mining||Invests principally in the shares of mining companies around the world.||View Factsheet|
|RIT Capital Partners||Has a widely diversified, international portfolio across a range of asset classes, both quoted and unquoted.||View Factsheet|
|Scottish Mortgage||Managers look for inspirationally managed companies with strong competitive advantages and radical growth opportunities.||View Factsheet|
|HSBC FTSE 250 Index C Acc||Tracks the performance of the FTSE 250 Index.||View Factsheet|
|Marlborough UK Micro Cap Growth||Invests in companies of less than £250m, providing exposure to the UK’s smallest companies with growth potential.||View Factsheet|
|Old Mutual Global Equity||Highly diversified global fund that adopts a pragmatic and multi themed approach.||View Factsheet|
|Pantheon International||A fund of private equity funds which provides exposure to private companies globally.||View Factsheet|
Over the long term, small and medium sized companies have traditionally outperformed larger ones. Therefore the UK exposure of this portfolio is focused on these areas. It consists of the HSBC FTSE 250 Index fund which tracks the performance of the UK's 250 medium sized companies, and, being a passive fund, this avoids the risk of choosing the wrong investment manager. Marlborough UK Micro Cap Growth provides the exposure to the UK’s smallest companies, where active management is advisable to avoid companies which may fail.
Old Mutual Global Equity and RIT Capital Partners provide broad exposure to international markets. The former has a highly diversified portfolio with no style bias, and invests where the managers see prices rising. RIT Capital Partners has a widely diversified, international portfolio across a range of asset classes.
The other three holdings are focused on more specialist areas which we believe have long term potential. Pantheon International invests globally in private companies in various industries through other private equity funds. Scottish Mortgage has had an excellent run of performance but we believe that its increasing investment in unquoted companies, its exposure to emerging markets and emphasis on disruptive technologies will stand it in good stead. BlackRock World Mining invests mainly in mining company shares which we believe will recover and produce significant gains in the long term when the demand for commodities increases again.
* 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.
Follow this portfolio
Rated Funds and the Model Portfolios are at the heart of everything we do here at Money Observer, and subscribing to our newsletters or the monthly magazine will keep you informed of any changes and updates we make and why.
Our sister company Interactive Investor offers investment in our Model Portfolios for the price of a single fund trade.
Sell Herald Investment Trust
Buy Scottish Mortgage Investment Trust
We believe that its increasing investment in unquoted companies, its exposure to emerging markets and emphasis on disruptive technologies will stand it in good stead.
BuyRIT Capital Partners
We believe this trust will be a good core holding for the higher risk portfolios.
Sell JPMorgan Global Emerging Markets Income
Poor performance and lack of a meaningful recovery in sight.
Buy Old Mutual Global Equity
To provide greater diversity and opportunities for growth through a fund which has no style bias and takes advantage of rising share prices wherever it finds them.
To gain from global exposure, high discount to NAV and significant exposure to unquoted companies.
Sell Templeton Emerging Markets
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.
To provide grobal exposure to smaller quoted TMT companies.
Buy HSBC FTSE 250 Index
Tracks the performance of the UK's 250 medium sized companies ranking behind the 100 largest.
Buy M&G Global Basics
Provides exposure to manufacturing and commodity companies worldwide.
Buy Marlborough UK Micro Cap Growth
To gain exposure to the UK's smallest companies with growth potential.
To provide global exposure and benefit from the trust's significant exposure to Asia Pacific and Emerging Markets
Buy Pantheon International
To benefit from the potentially strong growth potential offered byinvestment in private companies through this fund of private equity funds.
Buy Templeton Emerging Markets
To gain from the faster growth of the world's emerging economies.