Bravo model portfolio - medium-term growth, medium risk

Who is it for: 
  • Investors looking to grow their capital over at least ten to fifteen years, who 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 or to help them with a deposit for their first home through an ISA.
  • Investors in their late forties or early fifties who want to build up extra capital in an ISA may also wish to consider this option.
What it looks like: 
Fund Role in portfolio
Ardevora Global Equity Invests in undervalued companies globally, but is also able to ‘short’ shares that the managers believe will go down in value. View Factsheet
Mercantile IT Strong management team focuses on UK smaller and mid-cap companies. View Factsheet
Fundsmith Provides exposure to large global companies with strong brands. View Factsheet
HSBC FTSE All Share Index Ret Acc Tracks the performance of the FTSE All Share Index. View Factsheet
Capital Gearing Trust Heavily weighted to bonds, but is completely flexible in its asset allocation and has an absolute return objective. View Factsheet
Witan Investment Trust plc Highly diversified global investment trust which uses the specialist skills of a range of external managers. View Factsheet
Why were these funds selected: 

To provide this portfolio with a good foundation of UK holdings, we have selected Capital Gearing Trust and EdenTree UK Equity Growth. Capital Gearing is heavily weighted to bonds, but it is completely flexible in its asset allocation and has an absolute return objective, while Mercantile provides broad exposure to mid and smaller cap companies.

It holds the HSBC FTSE All Share Index fund to provide investors with additional broad exposure to UK companies of all sizes and, being a passive fund, this also avoids risk of choosing the wrong investment manager. To spread risk further and extend the scope for potential gains, three internationally invested funds, Ardevora Global Equity, Fundsmith Equity, and Witan are also included. Each is managed in a somewhat different way so they should give investors the opportunity to benefit from different investment approaches.

* Charts show bid-to-bid performance with income reinvested.

Please note that past performance is not a guide to future performance. Fund performance data does not take into account fees and expenses which are specific to individual plans.

Please be aware of the risks involved. Money Observer 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.

Where to get it: 

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Timeline: 

2017

  • SellKames Ethical Cautious Managed

  • BuyCapital Gearing Trust

    Heavily weighted to bonds, but is completely flexible in its asset allocation and has an absolute return objective.

2016

  • Sell EdenTree UK Equity Growth

    Change of manager in 2015 and disappointing performance since start of 2016

  • Buy Mercantile

    To take advantage, post-Brexit, of the lower valuations of small and mid-cap firms held in this well-regarded trust

2015

  • Sell Newton Real Return

    Pedestrian performance

  • Buy Kames Ethical Cautious Managed

    To gain from this fund's greater growth potential but still relatively low risk approach

2014

  • Sell Artemis Strategic Assets

    Disappointing performance

  • Buy EdenTree UK Equity Growth

    To gain from positive growth outlook for UK equities through steady-as-you-go type of fund.

  • Sell Monk

    Disappointing performance.

  • Buy Ardevora Global Equity

    To gain from fund's global approach and the fact that it can invest for the long term but also sell stocks short in order to take advantage of falling values.

2013

  • Sell Troy Spectrum

    Disappointing performance.

  • Buy Fundsmith Equity

    To gain from fund's exposure to large global companies with strong brands.

2012

  • Buy Artemis Strategic Assets

    To provide absolute returns in all market conditions.

  • Buy HSBC FTSE All-Share Index

    To provide broad exposure to UK companies of all sizes without manager risk.

  • Buy Monks

    To provide global exposure and benefit from the trust's significant exposure to Asia Pacific and Emerging Markets.

  • Buy Newton Real Return

    To provide absolute returns in all market conditions.

  • Buy Troy Spectrum

    To provide global diversification gained through fund of funds approach, with emphasis on capital preservation.

  • Buy Witan

    To provide global diversification gained through fund of funds approach.

Last updated: 
16 January 2017