Money Observer Model Portfolios
A strong rebound in stockmarkets from the pounding shares received at the end of 2018 catapulted the Money Observer model portfolios firmly back into profitability during the first quarter of 2019.
Constructing a diversified portfolio that is well-placed to weather storms and take advantage of future bright spots is no mean feat. That is where Money Observer’s 12 model portfolios aim to help investors reach their financial goals.
Last year was a difficult one for investors. The UK stock market felt the heat of the Brexit burn as politicians failed to agree on a strategy to exit the European Union.
The UK equity market lagged international stock markets in the first half of 2018, and it was the same story in the third quarter, with the FTSE All-Share index posting a loss of 0.8 per cent. In contrast, the FTSE World index returned 6.2 per cent in sterling terms.
While the underperformance of UK equities may whet the appetite of more contrarian-minded investors, as far as our model portfolios are concerned, it was a big factor behind eight of the 12 falling short of their relevant FTSE UK Private Investor index benchmark in the three months to 1 October.
Markets shook off a rocky start to 2018 to return to form during the second quarter – and propel the Money Observer model portfolios firmly back into the black.
All 12 of our portfolios beat the relevant FTSE UK Private Investor index benchmark during the three months to the end of June – some by as much as 3.5 per cent. That saw them recoup losses incurred during the volatility that pervaded investment markets in the first quarter of the year – and then some.
Money Observer's growth portfolios offer opportunities over three timeframes. Here's how each has performed.
Our model portfolios, however, have done reasonably well, particularly against the FTSE UK Private Investor index series.
Strong long-term performance from some holdings, a desire to introduce targeted regional exposure and weeding out relatively poor funds, means nine of our 12 model portfolios are adjusted in this quarterly review. Andrew Pitts and Holly Black explain why.
Find out how the continuing bull market has helped our 12 model portfolios over the past quarter.