Bravo model portfolio - medium-term growth, medium risk

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

Who is it for

Investors looking to grow their capital over at least ten to fifteen 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 forties or early fifties 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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HSBC FTSE All Share Index Ret Acc

Tracks the performance of the FTSE All Share Index.

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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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Witan Investment Trust plc

Highly diversified global investment trust which uses the specialist skills of a range of external managers.

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Royal London Sustainable Diversified

A mixed-asset fund investing in companies with a good environmental, social and governance record, with almost half in fixed interest and property for diversification.

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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 which replaces Mercantile IT. 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.

It holds the HSBC FTSE All Share Index fund to provide investors with additional broad exposure to UK companies of all sizes and, being a passive fund, this also avoids risk of choosing the wrong investment manager. To spread risk further and extend the scope for potential gains, two internationally invested funds, Fundsmith Equity, and Witan are also included. Ardovora Global Equity has been replaced by Fidelity Global Dividend which 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.

We have reduced holding in Mercantile IT and HSBC FTSE and used proceeds to buy Royal London Sustainable Diversified for a 10% portfolio weighting. This was increased by 5% in June.

Model Portfolio Bravo performance 31 July 2018

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
Bravo 2.1 6.2 13.8 49.6 80.1 122.9
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
    ROYAL LONDON SUSTAINABLE DIVERSIFIED
    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.