Delta portfolio (short-term growth, higher risk) (JD6V)
Delta portfolio (short-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 five to ten 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 an extra nest egg in an ISA who are unsure about when the capital will be required
- Investors approaching retirement with ample pension provision who want to make extra savings may also consider this option
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|
|Fundsmith Equity||Provides exposure to large global companies with strong brands|
|HSBC FTSE All Share Index||Tracks the performance of the FTSE All Share Index|
|Royal London Sustainable Diversified Trust||Invest in growing, innovative companies having a positive impact on society.|
|Rathbone Income||Invests in large and medium-sized UK company shares with above-average and maintainable dividends|
|Jupiter Asian Income||One of the few funds investing in the region with an income, as well as a capital growth, objective|
|Witan||Highly diversified global investment trust which uses the specialist skills of a range of external managers|
Why these funds were selected
Providing the portfolio with a solid base are three UK invested funds, with different approaches. Royal London Sustainable Diversified invests in a mixture of UK bonds and equities. Although bonds do not offer the same long-term growth prospects as equities, they help to offset volatility.
HSBC FTSE All Share Index provides investors with broad exposure mainly to larger UK-listed companies although smaller companies are also represented in this index-tracking fund. Rathbone Income is actively managed with the aim of providing steady growth and income, with dividends reinvested in this growth portfolio holding.
To spread risk further and extend the scope for potential gains, two internationally invested funds, Fundsmith Equity and Witan Investment trust are also included. Each is managed in a somewhat different way.
Fundsmith Equity's manager picks strong and durable companies, while Witan delegates parts of its portfolio to external managers to get the best returns for investors.
Finally there is Jupiter Asian Income. We feel that investors in this portfolio would be best served by having a fund that has the discipline of a focus on yield. The fund is relatively new, but manager Jason Pidcock ran the successful Newton Asian Income fund for many years. This growth-oriented portfolio will include the accumulation share class of this fund, rather than the income share class.
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.