Who is it for
Artemis Monthly Distribution
Aimed mainly at income-seekers this fund also offers accumulation shares. Its yield is attractive and the compounding effect of this income will help the portfolio to provide a steady return.
Provides exposure to large global companies with strong brands.
Capital Gearing IT
Tracks the performance of the FTSE All Share Index.
Royal London Sustainable Diversified Trust
Invest in growing, innovative companies having a positive impact on society.
LF Lindsell Train UK Equity
Manager Nick Train stresses the fund's emphasis on maintaining or growing the real value of investors' capital and income over time
Quilter Investors Cirilium Conservative Portfolio
Invests in a mixture of equities and bonds (name has changed from Old Mutual to Quilter Investors)
Why these funds were selected
With the aim of protecting investors from excessive volatility, this portfolio has three core holdings which each invests in a mixture of bonds and equities - Artemis Monthly Distribution, Quilter Investors Cirilium Conservative Portfolio and Royal London Sustainable Diversified Trust. Bonds tend to fluctuate less in value than shares, while the UK equity exposure in these funds provides growth potential. The managers of the funds adjust their holdings in each type of security in response to market conditions.
The portfolio also holds the Capital Gearing Investment Trust to bring an element of capital preservation for this short-term portfolio in the event of a market correction. To spread risk further two internationally invested funds, Fundsmith Equity and LF Lindsell Train UK Equity, which replaced Lindsell Train Global Equity in June 2018, are included. The managers of these two funds are highly experienced and focus on well established, stable companies.
Model Portfolio Alpha performance 4 Dec 2018
|Total return (%) over:|
|1 mth||6 mths||1 year||3 yrs||5 yrs||Inception|
|FTSE All Share||-1.6||-7.6||-1.4||22.6||29.2||72.1|
|FTSE UK Private Investor Growth||0.6||-0.3||3.2||32.8||47.6||88.0|
LF LINDSELL TRAIN UK EQUITYJune 2018
Increases the portfolio's exposure to UK equity market.
LINDSELL TRAIN GLOBAL EQUITYJune 2018
Swapped for LF Lindsell Train UK Equity as there is little exposure to UK equity market in this portfolio
CAPITAL GEARING TRUST ITJanuary 2018
Sold HSBC fund because of the potential for short-term losses from equity volatility and replaced it with Capital Gearing IT to being an element of capital preservation