Between the end of May and the start of October, our long-term growth fund portfolio returned a respectable 5.5%. “That performance is reasonably pleasing,” says the portfolio’s manager, Mike Deverell at Equilibrium. “Most things in there made some money. Of course, some didn’t, and unsurprisingly those were UK assets. But everything else went up.”
Purposeful Portfolios: Long-term growth
The past four months have seen our long-term growth portfolio stage a healthy recovery. At the close of January this year the portfolio fell in value by 3.8%, largely because of a sharp dip in global markets between October and December. But markets have rebounded since, and the portfolio returned a respectable 4.2% between February and the end of May.
That return lagged those from the US and other major global indices. Data from FE Analytics shows that the US market produced a return on sterling of 5.6% in those four months.
A solid start to the year helped ease the pain of the final quarter of 2018 for our long-term growth portfolio. All fund sectors were in positive territory in the first month of 2019. Those investors who held on through the tumult of the previous few months have been rewarded, as the stockmarket has recovered since the beginning of the year.
Even long-term investors occasionally take advantage of a short-term opportunity in the stock market. Mike Deverell at Equilibrium, manager of our long-term growth portfolio, sprang into action in February when the FTSE 100 index slipped.
Manager Mike Deverell tells Holly Blackhow he plans to preserve gains ahead of a larger stock market correction.