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.
|Holding||What it does|
|Scottish Oriental Smaller Companies||Focuses on domestic consumption through small companies in Asia|
|RIT Capital Partners||Has a widely diversified, international portfolio across a range of asset classes, both quoted and unquoted.|
|Scottish Mortgage Trust||Managers look for inspirationally managed companies with strong competitive advantages and radical growth opportunities.|
|Old Mutual UK Mid Cap||Takes a flexible approach through the economic cycle|
|Marlborough UK Micro Cap Growth||Invests in companies of less than £250m, providing exposure to the UK’s smallest companies with growth potential|
|Pantheon International||A fund of private equity funds which provides exposure to private companies globally|
|Old Mutual Global Equity||Highly 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 Old Mutual UK Mid Cap fund, which replaced the HSBC FTSE 250 Index fund in July 2017. There are two reasons for the switch; one is that long term performance of the Old Mutual fund is far superior to the HSBC FTSE 250 tracker fund (5 years: 184% vs 105%); and that an index-tracker cannot respond to the challenges that Brexit will bring to UK mid-caps, whereas an active manager can.
Marlborough UK Micro Cap Growth provides targeted exposure to the UK's smallest companies, where active management is advisable to help avoid companies that 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. Investment trust RIT Capital Partners has a widely diversified, international portfolio across a range of asset classes and targets capital preservation.
The other three holdings are all investment trusts focused on more specialist areas which we believe have long term potential. Pantheon International invests globally in unlisted 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.
In July 2017, we decided that the time is right for this long-term portfolio to have direct exposure to the Asia Pacific region, through Scottish Oriental Smaller Companies investment trust.
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.