Foxtrot portfolio (Long-term growth, higher risk) (JD6U)

Foxtrot portfolio (Long-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 fifteen years or more, 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 over the long term via a JISA or other savings
  • Investors in their forties or younger with existing pension provision who want to make extra long term savings 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.

Portfolio holdings

HoldingWhat it does
BlackRock World MiningInvests principally in the shares of mining companies around the world
RIT Capital PartnersHas a widely diversified, international portfolio across a range of asset classes, both quoted and unquoted.
Scottish Mortgage TrustManagers look for inspirationally managed companies with strong competitive advantages and radical growth opportunities.
HSBC FTSE 250 IndexTracks the performance of the UK's 250 medium sized companies which have historically outperformed their larger counterparts
Marlborough UK Micro Cap GrowthInvests in companies of less than £250m, providing exposure to the UK’s smallest companies with growth potential
Pantheon InternationalA fund of private equity funds which provides exposure to private companies globally
Old Mutual Global EquityHighly diversified global fund that adopts a pragmatic and multi themed approach

Why these funds were selected

Over the long term, small and medium sized companies have traditionally outperformed larger ones. Therefore the UK exposure of this portfolio is focused on these areas. It consists of the HSBC FTSE 250 Index fund which tracks the performance of the UK's 250 medium sized companies, and, being a passive fund, this avoids the risk of choosing the wrong investment manager. Marlborough UK Micro Cap Growth provides the exposure to the UK’s smallest companies, where active management is advisable to avoid companies which may fail.

Old Mutual Global Equity and RIT Capital Partners provide broad exposure to international markets. The former has a highly diversified portfolio with no style bias, and invests where the managers see prices rising. RIT Capital Partners has a widely diversified, international portfolio across a range of asset classes.

The other three holdings are focused on more specialist areas which we believe have long term potential. Pantheon International invests globally in private companies in various industries through other private equity funds. Scottish Mortgage has had an excellent run of performance but we believe that its increasing investment in unquoted companies, its exposure to emerging markets and emphasis on disruptive technologies will stand it in good stead. BlackRock World Mining invests mainly in mining company shares which we believe will recover and produce significant gains in the long term when the demand for commodities increases again.

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