Many investors might have forgotten what stock market volatility feels like until recently. Indeed, those who started their investment journey within the past 10 years will not previously have experienced sustained (historically pretty normal) volatility. However, October 2018 brought the first notable sell-off in global stock markets for years, hitting investors’ portfolios and dragging down returns. Even the professionals were not immune to the damage.
Our capital conserver portfolio has been a real mixed bag since the last update four months ago, with some holdings posting incredible double-digit returns over the period while others are in the red. Three funds in the portfolio are up by 13 per cent or more over the past four months, but six are in negative territory.
A year on from inception, our £100,000 portfolio designed for capital preservation is in the red. However, losses have been limited.
Rob Morgan at Charles Stanley discusses his £100,000 portfolio designed for capital preservation, and how it is faring after eight months.
Rob Morgan was tasked with building a portfolio which would protect investors’ cash in times of uncertainty, and provide some growth if the going was good. The first four months have provided a political challenge that should have put it through its paces, with a UK general election, a French election and countless changes to the US administration, though in practice markets have continued to take such events in their stride. After four months, the portfolio is up 1.8 per cent, with an average yield among its holdings of 2.5 per cent.
Introducing the first of a new set of four £100,000 portfolios - Capital Conserver.
Rob Morgan is usually something of a ‘gung-ho’ investor. Still in his 30s, the investment analyst at Charles Stanley Direct has the time – and the risk appetite – to ride out ups and downs in the market for his own investments.
But not everyone can stomach the idea of sending their savings on a rollercoaster ride. We have taken Morgan out of his comfort zone and tasked him with running our cautious Capital Conserver portfolio.