Alpha portfolio (short-term growth, medium risk) (JD7B)
Alpha portfolio (short-term growth, medium 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 years to ten years, who are prepared to take some risk and can afford to lose some of their capital under a worst case scenario
- It may suit investors with young children seeking to build up capital for their further education
- Investors in their fifties may wish to consider this option in order to grow their savings capital for use when they first retire
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|
|Fidelity Moneybuilder Balanced||Invests in a mixture of equities and bonds|
|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|
|Lindsell Train Global Equity||Targets absolute returns by focusing on sustainable businesses around the world|
|Artemis Monthly Distribtution||The fund aims to achieve an income in addition to capital growth through an actively managed combination of global equities, bonds and cash|
Why these funds were selected
With the aim of protecting investors from excessive volatility, this portfolio has three core holdings which each invests in a mixture of bonds and equities - Artemis Monthly Distribution, Fidelity Moneybuilder Balanced and Royal London Sustainable Diversified. Bonds tend to fluctuate less in value than shares, while the UK equity exposure in these funds provides growth potential. The managers of the funds adjust their holdings in each type of security in response to market conditions.
The portfolio also holds the 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.
To spread risk further two internationally invested funds, Fundsmith Equity and Lindsell Train Global Equity, are included. The managers of these two funds are highly experienced and focus on well established, stable companies.
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.