Who is it for
Utilico Emerging Markets
Invests predominantly in listed companies involved in infrastructure, transport and similar sectors operating in emerging markets.
Invests in UK companies of all sizes to achieve increasing income and capital growth.
Schroder Oriental Income
Focuses on quality companies in Asia Pacific Region.
JP Morgan European Trust Income Pool
Looks for sustainable dividends from larger companies.
Conservatively managed contrarian fund
Replaces Scottish Mortgage.
Baillie Gifford Strategic Bond
Seeks a mixture of income and capital growth. Replaces Artemis Global Income
Why these funds were selected
This portfolio invests purely in equity funds in order to provide the best prospects for income growth and capital gains over the long term. It includes four UK focused funds. The core holding is JPMorgan European Trust (income shares). It focuses on large companies but also targets growing, medium-sized companies in the region and has returned over 40 per cent in the past year. Two further UK equity holdings in the portfolio are Lowland and PFS Chelverton UK Equity Income which provide more exposure to medium and smaller sized companies and should give the portfolio greater income and capital growth potential.
Diversified international exposure comes from the portfolio’s holdings in Artemis Global Income and Scottish Mortgage. They are invested in different ways. The Artemis fund is a classic global equity income fund while Scottish Mortgage is more growth oriented and can be used as a source of capital withdrawals to supplement income. Utilico Emerging Markets gives the portfolio exposure to emerging markets. This trust invests for total return but has a yield of over 3 per cent and pays a quarterly income. Finally, the portfolio includes Schroder Oriental Income which provides exposure to the Asia Pacific region and has good potential to provide an increasing income and capital gains over the long term from this faster growing economic area.
Model Portfolio Lima performance 1 October 2019
|Total returns (%) over:|
|1 mo||6 mo||1 yr||3 yrs||Since inception|
|FTSE All-Share index||2.9||4.5||2.6||21.6||89.5|
|FTSE UK Private Investor
SCOTTISH MORTGAGE INVESTMENT TRUSTJanuary 2019
Replaced with Fundsmith Equity
CHELVERTON UK EQUITY INCOMEJanuary 2019
Too much smaller companies exposure
ARTEMIS GLOBAL INCOMEJanuary 2019
Swapped with Baillie Gifford Strategic Bond
TEMPLE BARJanuary 2019
Should thrive in current environment.
FUNDSMITH EQUITYJanuary 2019
Play a similar role to Scottish Mortgage (a means to withdraw capital should income payments fall short) but with less volatility
BAILLIE GIFFORD STRATEGIC BONDJanuary 2019
Introduces a small allocation to fixed income
SCHRODER ORIENTAL INCOMEJuly 2017
Added to Schroder Oriental Income with part of the proceeds from reducing Scottish Mortgage holding.
Used proceeds from reducing Scottish Mortgage holding by 8 per cent to 17 per cent to add to Lowland and Schroder Oriental Income
JPMORGAN EUROPEAN TRUSTJuly 2017
Increased exposure to European equities
SCOTTISH MORTGAGEJuly 2017
Reduced holding by 8 per cent to 17 per cent.
TROY INCOME & GROWTHJuly 2017
Sold Troy Income & Growth to reduce exposure to UK.