Alpha model portfolio - short-term growth, medium risk

Growth: Short term
Risk: Medium
Last updated: March 23, 2018

Who is it for

Investors looking to grow their capital over at least five to ten years, who can afford to lose some of their capital under a worst case scenario.
It may suit investors with children seeking to build up capital for their further education within an Isa.
Investors in their fifties building up extra capital within an ISA may also wish to consider this option.

Portfolio breakdown

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.

Fundsmith Equity

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 31 July 2018

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
Alpha 1.6 5.8 11.2 43.2 64.0 89.1
FTSE All Share 1.3 5.0 9.2 30.2 44.9 88.5
FTSE UK Private Investor Growth 2.3 4.0 8.4 35.4 53.7 93.4

 

Timeline

2018

  • Buy
    LF LINDSELL TRAIN UK EQUITY
    June 2018

    Increases the portfolio's exposure to UK equity market.

  • Sell
    LINDSELL TRAIN GLOBAL EQUITY
    June 2018

    Swapped for LF Lindsell Train UK Equity as there is little exposure to UK equity market in this portfolio

  • Buy
    CAPITAL GEARING TRUST IT
    January 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