Foxtrot model portfolio - long-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
Scottish Oriental Smaller Companies IT 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
Old Mutual UK Mid Cap Takes a flexible approach through the economic cycle. 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
Why were these funds selected: 

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 Old Mutual UK Mid Cap fund which replaces the HSBC FTSE 250 Index which had been in the portfolio since inception. The active fund's performance has been far superior to the tracker, returning 184 per cent over five years compared to 105 per cent for the tracker. 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 has been replaced by Scottish Oriental Smaller Companies trust. Some 28 per cent of this trust's assets are India, with 13 per cent each in China and Taiwan. The trust focuses on companies on with a market capitalisation of less than £1 billion.

* 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

  • SellBlackRock World Mining IT

  • BuyScottish Oriental Smaller Companies

    The trust focuses on companies with a market capitalisation of less than £1 billion and its biggest weightings are in consumer stocks.

2017

  • Sell HSBC FTSE 250 Index

  • Buy Old Mutual UK Mid Cap

    The active fund's performance has been far superior to the tracker fund, with returns of 184 per cent versus 105 per cent over five years.

2017

  • 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.

2017

  • SellCaledonia Investments

  • BuyRIT Capital Partners

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

2016

  • 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.

2015

2014

  • Sell Monks

    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 Herald

    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.

  • Buy Monks

    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.

Last updated: 
1 July 2017