Charlie model portfolio - long-term growth, medium risk

Growth: Long term
Risk: Medium
Last updated: January 3, 2020

Who is it for

Investors looking to grow their capital over 15 years or more, who are can afford to lose some of their capital under a worst-case scenario.
It may suit investors with very young children seeking to build up capital via an Isa for their further education or to help them with a deposit for their first home.
Investors in their 40s or younger who want to build up a nest egg or extra capital for when they retire may wish to consider this option.

Portfolio breakdown

Fidelity Global Focus

The Fund aims to provide long term capital growth through investment in global equities. The Fund will predominantly invest in equities (and equity related securities) of medium sized companies, and aims to hold a concentrated portfolio within a range of 40-60 securities.

Mercantile IT

Invests primarily in medium-sized companies that are constituents of the FTSE 250 index.

Capital Gearing Trust

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

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.

LF Lindsell Train UK Equity

Invests in durable, cash-generative businesses and focuses on cash preservation, with an absolute return approach.

Fidelity Emerging Markets

Added because of its focus on larger companies and 'best of breed' approach

Schroder Asian Total Return Investment Trust

Solid replacement for Baring Eastern. Provides downside protection

Why these funds were selected

Read our latest
Model Portfolio
Quarterly Review

Charlie has gained 23% in the past year helped by Mercantile, our top performer of 2019. Fidelity Emerging Markets also helped keep the portfolio buoyant. Merian Global Equity was replaced by Fidelity Global Focus in January 2020. The incoming fund is more opportunistic than the outgoing fund. The Merian fund also shared with another constituent – F&C IT – a focus on large companies. Exposure to Lindesll Train UK Equity has been increased to 15% after trimming 3% from F&C and Fidelity Global Focus having a 3% smaller weight than the Merian fund it replaced.

The portfolio’s overseas exposure consisted of two globally invested funds, Ardevora Global Equity and Witan. However, Witan was swapped for F&C Trust in October 2018, while Ardevora Global Equity was sold in June 2018 and was replaced with Merian Global Equity, which was more suitable for a longer-term portfolio. Merian Global Equity as we mentioned earlier was subsequently replaced by Fidelity Global Focus.

Model Portfolio Charlie performance 3 January 2020

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
Charlie 3.0 7.3 22.9 29.2 56.8 124.5
FTSE All Share 3.3 5.4 19.1 22.0 43.8 99.1
FTSE UK Private Investor Growth 1.2 4.1 16.6 25.0 53.4 112.0

Timeline

2020

  • Buy
    FIDELITY GLOBAL FOCUS
    January 2020

    Putting 15% into this fund compared to 18% in the departing Merian fund; trimming weighting of F&C IT by 3% and increasing weighting in Lindsell Train UK Equity from 9% to 15%

  • Sell
    MERIAN GLOBAL EQUITY
    January 2020

    Is being replaced by the more opportunistic Fidelity Global Focus, a new Money Observer Rated Fund.

2019

  • Sell
    BARING EASTERN
    January 2019

     A significant loss-maker, down 16%, so selling

  • Sell
    LF MITON UK VALUE OPPORTUNITIES
    January 2019

    Disappointed by losing 17%

  • Buy
    FIDELITY EMERGING MARKETS
    January 2019

    Bought for its focus on larger companies

  • Buy
    SCHRODER ASIAN TOTAL RETURN INVESTMENT TRUST
    January 2019

    Combine quality growth firms with a degree of capital preservation

2018

  • Sell
    Witan Investment Trust plc
    October 2018

    A move designed to take some UK equity exposure off the table.

  • Buy
    F&C Investment Trust
    October 2018

    Dynamic asset allocation approach, including its exposure to private equity. Operates on a global scale, yet has just 6.6% of its assets in the UK.

  • Sell
    ARDEVORA GLOBAL EQUITY
    June 2018

    Replaced by punchier Old Mutual Global Equity

  • Buy
    OLD MUTUAL GLOBAL EQUITY
    June 2018

    Aims to 'follow the money' so may be relatively sensitive to market movements and therefore well-suited to a longer-term portfolio

  • Sell
    HSBC FTSE ALL-SHARE INDEX FUND
    January 2018
  • Buy
    MERCANTILE IT
    January 2018

    This is a good active fund that invests in medium-sized companies and should outperform over 15 years

  • Sell
    STEWART ASIA PACIFIC LEADERS
    January 2018
  • Buy
    BARING EASTERN
    January 2018

    A tech helped this fund perform impressively in recent years.

2017

  • Sell
    KAMES ETHICAL CAUTIOUS MANAGED
    January 2017
  • Buy
    CAPITAL GEARING TRUST
    January 2017

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

2016

  • Reduce
    CF MITON UK VALUE OPPORTUNITIES
    July 2016

    Holding reduced because of manager change.

  • Buy
    LINDSELL TRAIN UK EQUITY
    July 2016

    To gain from absolute return approach and focus on cash preservation in challenging times.

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.

  • Sell
    LEGAL & GENERAL UK ALPHA
    January 2015

    Returns more erratic than expected.

  • Buy
    CF MITON UK VALUE OPPORTUNITIES
    January 2015

    To benefit from managers who have shown a talent for finding undervalued companies which produce strong growth.

2014

  • Sell
    MONKS
    October 2014

    Disappointing performance.

  • Buy
    ARDEVORA GLOBAL EQUITY
    October 2014

    To gain from fund's global mandate and the fact that it can invest for the long term but also sell stocks short in order to take advantage of falling values.

2012

  • Buy
    HSBC FTSE ALL-SHARE INDEX
    January 2012

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

  • Buy
    LEGAL & GENERAL UK ALPHA
    January 2012

    To gain exposure to undervalued, and potentially faster growing UK companies.

  • 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
    STEWART INV ASIA PACIFIC LEADERS
    January 2012

    To provide exposure to fast growing Pacific region via investment in large and mid-sized companies.

  • Buy
    WITAN
    January 2012

    To provide global diversification gained through fund of funds approach.