How our 12 Model Portfolios fared in 2016
16th December 2016 12:12
Over the year, the top performing model portfolio was
, our long-term growth portfolio for higher-risk investors. It is constructed to provide strong capital growth over at least 10-15 years through broad equity exposure, even though this may involve some shorter-term volatility.Foxtrot has
to thank for its strong performance in 2016, which has risen an incredible 93% since the start of 2016, up to 8 December. BlackRock World Mining has benefited from the oil price staging a recovery, rising from a low of $30 a barrel earlier this year to above $50.In response mining shares, which were trading at depressed levels, have soared. This has played a big part in Foxtrot returning 17.5% over the year. Over three years the portfolio is up 24.8%.
UK weighting
The UK weighting in the portfolio focuses on small and medium-sized companies, which have traditionally outperformed larger ones, although this correlation has not played out since the Brexit vote.
Foxtrot's holdings include the
, which tracks the performance of the UK's 250 medium-sized companies, while provides exposure to the UK's smallest companies (under £250 million), where active management is needed to identify potential winners.The portfolio could suit investors who wish to accumulate a nest egg for grandchildren through a Junior ISA, or those in their early 50s with adequate pension provision, who want to grow extra savings for their retirement in an ISA.
The second best performing model portfolio was
, our short-term growth portfolio for higher-risk investors. Delta contains four active funds, one passive fund and one investment trust.They are:
, , , , and .Delta has returned 13% over the year and 32% over the last three years to 8 December, compared with the FTSE All Share which has posted gains of 11 and 17% over three years.
It is interesting to note that all three top performing portfolios were in the higher-risk category. The third best portfolio was
, a medium-growth portfolio for higher-risk investors.At the base of the Echo portfolio is a holding in HSBC FTSE All Share Index fund, which provides investors with broad exposure to UK companies of all sizes. Another holding is
, up 15% over the year.
Model Portfolio | 1yr total ret (%) | 3yr total ret (%) |
Foxtrot: longer-term growth, higher risk | 17.52 | 24.78 |
Delta: short-term growth, higher risk | 13.01 | 32.40 |
Echo: medium-term growth, higher risk | 11.82 | 15.64 |
Bravo: medium-term growth, medium risk | 11.47 | 33.05 |
Alpha: short-term growth, medium risk | 11.27 | 27.31 |
India: growing income, medium risk | 11.21 | 30.37 |
Hotel: balanced income, medium risk | 9.71 | 20.83 |
Juliet: immediate income higher risk | 8.61 | 24.72 |
Charlie: longer-term growth, medium risk | 8.40 | 27.41 |
Kilo: balanced income, higher risk | 8.37 | 24.00 |
lima: growing income, higher risk | 8.36 | 28.79 |
Golf: immediate income, medium risk | 7.32 | 14.21 |
FTSE All Share | 11.34 | 17.11 |
FTSE World | 24.17 | 45.63 |
FTSE WMA Stockmarket Growth | 14.45 | 27.56 |
FTSE WMA Stockmarket Income | 10.89 | 23.69 |
Data to 8 December. Source: FE Trustnet |
This article was originally published in our sister magazine Money Observer. Click here to subscribe.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Editor's Picks