As we usher in the new year, James Brumwell, the manager of our Regular Income portfolio, has made a number of changes over what has been a truly torrid period.
Many investors might have forgotten what stock market volatility feels like until recently. Indeed, those who started their investment journey within the past 10 years will not previously have experienced sustained (historically pretty normal) volatility. However, October 2018 brought the first notable sell-off in global stock markets for years, hitting investors’ portfolios and dragging down returns. Even the professionals were not immune to the damage.
Our capital conserver portfolio has been a real mixed bag since the last update four months ago, with some holdings posting incredible double-digit returns over the period while others are in the red. Three funds in the portfolio are up by 13 per cent or more over the past four months, but six are in negative territory.
Our higher-income portfolio has been a mixed bag over the past four months, but one holding has stolen the show. The TR Property investment trust has returned an impressive 15 per cent since our last update and is now up by more than a third since the launch of the portfolio.
A year on from inception, our £100,000 portfolio designed for capital preservation is in the red. However, losses have been limited.
Investor sentiment for developed markets has weakened, with some major indices displaying the dreaded ‘death cross.
Gary Millward at Alan Steel Asset Management explains the higher-income portfolio’s performance over its first year of operation.
Manager Mike Deverell tells Holly Blackhow he plans to preserve gains ahead of a larger stock market correction.
Our Regular Income portfolio has collected £4,393 in dividends since its April launch, a yield of almost 4.4 per cent. With many UK equity income funds struggling to meet the Investment Association sector requirement to match the yield of the FTSE All-Share index – currently 3.6 per cent – James Brumwell is pleased with his portfolio’s progress
Rob Morgan at Charles Stanley discusses his £100,000 portfolio designed for capital preservation, and how it is faring after eight months.