Bravo model portfolio - medium-term growth, medium risk

Growth: Medium term
Risk: Medium
Last updated: April 2, 2019

Who is it for

Investors looking to grow their capital over at least 10 to 15 years, who can afford to lose some of their capital under a worst-case scenario.
It may suit investors with young children seeking to build up capital for their further education, or to help them with a deposit for their first home through an Isa.
Investors in their late 40s or early 50s who want to build up extra capital in an Isa may also wish to consider this option.

Portfolio breakdown

Fidelity Global Dividend

Manager Dan Roberts not only seeks to provide a combination of income and capital growth, but also focuses on wealth preservation.

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CFP SDL UK Buffettology

This fund aims to replicate the investment style of legendary value investor Warren Buffett.

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Fundsmith

Provides exposure to large global companies with strong brands.

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Artemis Global Growth Fund I Acc

Aims to provide capital growth from a diversified portfolio investing in any economic sector in any part of the world.

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Capital Gearing Trust

Heavily weighted to bonds, but is completely flexible in its asset allocation and has an absolute return objective.

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F&C Investment Trust

Seeks to secure long-term growth in capital and income from an international diversified portfolio of listed equities, as well as unlisted securities and private equity with gearing.

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Jupiter Strategic Bond

Risk-averse bond fund is a good fit for a medium-risk portfolio. Strategic bond funds can dig out the best opportunities from across the fixed income universe

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Why these funds were selected

To provide this portfolio with a good foundation of UK holdings, we have selected Capital Gearing Trust and CFP SDL UK Buffettology. Capital Gearing is heavily weighted to bonds, but it is completely flexible in its asset allocation and has an absolute return objective, while CFP SDL UK Buffettology provides broad exposure to mid and smaller cap companies.

Given the uncertainties over how Brexit will pan out, we have taken some UK equity exposure off the table and recycled the proceeds into global equities. This led to swapping Witan IT for F&C Trust. While both operate on a global scale, Witan has a third of its assets in the UK, while F&C has less than 7% in the UK.

We have removed the HSBC FTSE All Share Index in favour of Artemis Global Growth. To spread risk further and extend the scope for potential gains, another internationally invested fund, Fundsmith Equity, is also included. Fidelity Global Dividend seeks to provide a mix of income and capital with wealth preservation in mind. Each is managed in a somewhat different way so they should give investors the opportunity to benefit from different investment approaches.

Holding in Royal London Sustainable Diversified was increased in June and currently represents a 14.7% portfolio weighting.

Model Portfolio Bravo performance 1 April 2019

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
Bravo 2.3 -1.5 9.3 46.6 69.5 121.0
FTSE All Share 2.6 -1.8 6.3 31.3 34.4 82.2
FTSE UK Private Investor Growth 2.6 -0.5 8.2 35.4 50.1 93.9

 

Timeline

2019

  • Buy
    JUPITER STRATEGIC BOND
    January 2019

    Added strategic bond  as replacement for Royal London Sustainable Diversified Trust as the portfolio is already well diversified in equities

  • Sell
    ROYAL LONDON SUSTAINABLE DIVERSIFIED TRUST
    January 2019

    Replacing with pure bond fund - Jupiter Strategic Bond

2018

  • Sell
    Witan Investment Trust plc
    October 2018

    To take some UK equity exposure off the table - Witan has one-third of its assets in the UK.

  • Sell
    HSBC FTSE All Share Index Ret Acc
    October 2018

    Swapped for Artemis Global Growth.

  • Buy
    Artemis Global Growth Fund I Acc
    October 2018

    Has held Money Observer Rated Fund status in every year since 2014.

  • Buy
    F&C Investment Trust
    October 2018

    Dynamic asset allocation approach, including exposure to private equity, and just 6.6% of its assets in the UK.

  • Buy
    ROYAL LONDON SUSTAINABLE DIVERSIFIED TRUST
    June 2018

    Increased portfolio weighting by 5 per cent

  • Buy
    CFP SDL UK BUFFETTOLOGY
    June 2018

    Replaces the more volatile Mercantile trust

  • Sell
    MERCANTILE
    June 2018

    Because of its focus on medium and small UK companies it is relatively volatile, so replaced with CFP SDL UK Buffettology

  • Buy
    FIDELITY GLOBAL DIVIDEND
    June 2018

    Provides a combination of income and capital growth, but also focuses on wealth preservation

  • Sell
    ARDEVORA GLOBAL EQUITY
    June 2018

    Better suited to a higher-risk portfolio than to this medium-risk line-up

  • Buy
    ROYAL LONDON SUSTAINABLE DIVERSIFIED
    January 2018

    Reduced holding in Mercantile IT and HSBC FTSE and used proceeds to buy Royal London Sustainable Diversified for a 10% portfolio weighting.

2017

  • Buy
    CAPITAL GEARING TRUST
    June 2017

    Heavily weighted to bonds, but is completely flexible in its asset allocation and has an absolute return objective.

  • Sell
    KAMES ETHICAL CAUTIOUS MANAGED
    January 2017

2016

  • Sell
    EDENTREE UK EQUITY GROWTH
    July 2016

    Change of manager in 2015 and disappointing performance since start of 2016

  • Buy
    MERCANTILE
    July 2016

    To take advantage, post-Brexit, of the lower valuations of small and mid-cap firms held in this well-regarded trust

2015

  • Sell
    NEWTON REAL RETURN
    July 2015

    Pedestrian performance

  • Buy
    KAMES ETHICAL CAUTIOUS MANAGED
    July 2015

    To gain from this fund's greater growth potential but still relatively low risk approach

2013

  • Sell
    TROY SPECTRUM
    October 2013

    Disappointing performance.

  • Buy
    FUNDSMITH EQUITY
    October 2013

    To gain from fund's exposure to large global companies with strong brands.

2012

  • Buy
    ARTEMIS STRATEGIC ASSETS
    January 2012

    To provide absolute returns in all market conditions.

  • Buy
    HSBC FTSE ALL-SHARE INDEX
    January 2012

    To provide broad exposure to UK companies of all sizes without manager risk.

  • Buy
    MONKS
    January 2012

    To provide global exposure and benefit from the trust's significant exposure to Asia Pacific and Emerging Markets.

  • Buy
    NEWTON REAL RETURN
    January 2012

    To provide absolute returns in all market conditions.

  • Buy
    TROY SPECTRUM
    January 2012

    To provide global diversification gained through fund of funds approach, with emphasis on capital preservation.

  • Buy
    WITAN
    January 2012

    To provide global diversification gained through fund of funds approach.