Delta model portfolio - short-term growth, higher risk

Growth: Short term
Risk: Higher
Last updated: April 11, 2018

Who is it for

Investors looking to grow their capital over at least five to ten years, who have other secure savings, and can afford to lose a significant portion of this capital under a worst case scenario.
Could be considered by investors wishing to accumulate an extra nest egg in an ISA who are unsure about when the capital will be required.
Investors approaching retirement with ample pension provision who want to make extra savings may also consider this option.

Portfolio breakdown

Fundsmith Equity

Provides exposure to large global companies with strong brands.

HSBC FTSE All Share Index Ret Acc

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.

Rathbone Income

A steady performer investing for income in UK companies, dividends can be reinvested by growth investors.

Schroder Asian Total Return Inv. Co.

Blends exceptional returns with a focus on capital preservation.

Witan Investment Trust plc

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

Why these funds were selected

Providing the portfolio with a solid base are three UK invested funds, with different approaches. Royal London Sustainable Diversified Trust invests in a mixture of UK bonds and equities. Although bonds do not offer the same long term growth prospects as equities, they help to offset volatility. We believe the ability of this fund to invest in overseas equities will help its performance. HSBC FTSE All Share Index provides investors with broad exposure to UK companies of all sizes and, being a passive fund, this also avoids the risk of choosing the wrong investment manager. Rathbone Income is actively managed with the aim of providing steady growth and income, dividends can be reinvested by growth investors.

To spread risk further and extend the scope for potential gains, two internationally invested funds, Fundsmith Equity, and Witan are also included. Each is managed in a somewhat different way. Fundsmith Equity’s manager picks strong companies, while Witan delegates parts of its portfolio to external managers to get the best returns for investors. And Jupiter Asian Income has been replaced by Schroder Asian Total Return Investment Company. It has blended exceptional returns with a focus on capital preservation. We feel this approach will be well-suited to a shorter-term, higher-risk growth portfolio.

Model Portfolio Delta performance 31 July 2018

  Total return (%) over:          
  1 mth 6 mths 1 year 3 yrs 5 yrs Inception  
  % % % % % %
Delta 1.8 4.3 9.0 42.6 68.4 108.0
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

  • Sell
    JUPITER ASIAN INCOME
    January 2018
  • Buy
    SCHRODER ASIAN TOTAL RETURN INVEST. CO.
    January 2018

    Swapped Jupiter Asian Income, which has lagged its peers, for Schroder Asian TR with its focus on capital preservation.

2017

  • Sell
    STEWART INVESTORS ASIA PACIFIC LEADERS
    July 2017
  • Buy
    JUPITER ASIAN INCOME
    July 2017

    Swapped the Stewart fund for Jupiter Asian Income because of its investment discipline its focus on yield entails.

  • Sell
    KAMES ETHICAL CAUTIOUS MANAGED
    January 2017
  • Buy
    ROYAL LONDON SUSTAINABLE DIVERSIFIED TRUST
    January 2017

    We have stuck with a similarly cautious mixed asset fund but we believe the ability of this fund to invest in overseas equities will help its performance.

2016

  • Sell
    NEWTON REAL RETURN
    January 2016

    Pedestrian performance.

  • Buy
    KAMES ETHICAL CAUTIOUS MANAGED
    January 2016

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

2015

  • Sell
    INVESTEC CAUTIOUS MANAGED
    January 2015

    Manager's contrarian approach had produced disappointing performance.

  • Buy
    RATHBONE INCOME
    January 2015

    A steady performer investing for income in UK companies which can be reinvested by growth investors.

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
    HSBC FTSE ALL-SHARE INDEX
    January 2012

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

  • Buy
    INVESTEC CAUTIOUS MANAGED
    January 2012

    To provide a stable core and modest but consistent returns.

  • 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
    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.