Echo portfolio (medium-term growth, higher risk) (JD6T)
Echo portfolio (medium-term growth, higher risk)
What is it
- Created by Money Observer associate editor Andrew Pitts, the model portfolio range consists of 12 portfolios catering for medium and higher risk profiles, income or growth aims and different time horizons
- The portfolios are reviewed quarterly and you can read the reviews in the Money Observer magazine or website
Who is this portfolio for
- Investors looking to grow their capital over at least ten to fifteen years, who have other secure savings, and can afford to lose a significant portion of this capital under a worst case scenario
- Could be considered by investors wishing to accumulate a nest egg for grandchildren via a JISA
- Investors in their early fifties with adequate pension provision who want to make extra savings for their retirement in an ISA
Please be aware of the risks involved. ii does not provide investment advice. You should choose investments to suit your personal circumstances and attitude to risk. If you are at all unsure you should seek advice.
|Holding||What it does|
|Ardevora Global Equity||Invests in undervalued companies globally, but is also able to 'short' shares that the managers believe will go down in value|
|RIT Capital Partners||Has a widely diversified, international portfolio across a range of asset classes, both quoted and unquoted.|
|CF Miton UK Value Opportunities||Invests in UK companies of all sizes which its managers believe are undervalued and likely to produce superior capital growth|
|F&C Global Smaller Companies||Provides exposure to faster growing smaller companies worldwide, including in the UK|
|Veritas Asian||Invests in large and mid-sized companies in the region which the managers believe are well managed and resilient|
|HSBC FTSE All Share Index||Tracks the performance of the FTSE All Share Index|
|Old Mutual Global Equity||Highly diversified global fund that adopts a pragmatic and multi themed approach|
Why these funds were selected
At the base of the portfolio is a holding in HSBC FTSE All Share Index fund, which provides investors with broad exposure mainly to larger UK-listed companies although smaller companies are also represented in this index-tracking fund. The actively managed CF Miton UK Value Opportunities aims to provide exposure to undervalued UK companies that the manager expects to produce strong growth.
The largest part of the portfolio is invested in four global funds and trusts with different strategies to provide diversification and maximum scope for gains. Old Mutual Global Equity has a highly diversified portfolio with no style bias, and invests where the managers see prices rising.
Ardevora Global Equity invests in undervalued companies globally, but is also able to 'short' shares that the managers believe will go down in value. RIT Capital Partners is an investment trust with a widely diversified, international portfolio across a range of asset classes and targets capital preservation. Another investment trust, F&C Global Smaller Companies, focuses on faster growing smaller businesses.
To top it off, there is a holding in Veritas Asian, which has performed very well against its benchmark over several years.
The fund's portfolio is split into two parts. The core portfolio is comprised of companies that are expected to provide steady returns over the longer term (three to five years). The trading portfolio, which is short term in nature (up to 6 months), is used to capitalise on market inefficiencies and earnings momentum.
How to buy it
- These portfolios are available to buy* for £10 per portfolio, saving you up to £60 on commission charges (quarterly account fees apply)
- You can only buy Money Observer's Model Portfolios through Interactive Investor
- Once you have opened and funded your ii account simply buy the portfolio of your choice for your trading account, ISA, SIPP or JISA with us
- Your invesment will be allocated to each underlying fund in the same proportion as its weighting within the model portfolio (to the nearest 1%) as at the last quarterly review. The £10 purchase fee will be deducted from the amount invested in the first named holding
- Rather than be displayed as a single model portfolio investment, each underlying fund holding will be shown separately in your account
- To find out why you should invest with ii, visit our share and fund account page
*Each line of stock must be sold individually
About This Fund Factsheet
The factsheet for this Model Portfolio provides a view of its past performance since inception in January 2012. It accounts for any switches that will have been made at specific quarterly review dates. These switches are generally made at the current portfolio weighting at the time.
While constituent weightings in each of the model portfolios are monitored quarterly, investors in the portfolios should be aware that, when making a purchase, your investment will be allocated to each of the model portfolio's constituents based on their weighting as at the last quarterly review: these are shown in the 'top holdings' section of the 'fund holdings' tab on the respective portfolio factsheet. This means that performance experienced by investors over time is unlikely to be directly comparable with the performance quoted in the factsheet.
Portfolios are not automatically rebalanced: should you wish to sell part of overweight holdings in order to mirror the underlying fund weightings, normal dealing charges will apply to each sale and purchase.