Charlie model portfolio - long-term growth, medium risk

Who is it for: 
  • Investors looking to grow their capital over fifteen years or more, who are can afford to lose some of their capital under a worst case scenario.
  • It may suit investors with very young children seeking to build up capital via an ISA for their further education or to help them with a deposit for their first home.
  • Investors in their forties or younger who want to build up a nest egg or extra capital for when they retire may wish to consider this option.
Charlie Money Observer model portfolio icon
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
CF - Miton UK Value Opportunities B Inst Acc Invests in UK companies of all sizes which its managers believe are undervalued and likely to produce superior capital growth. 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
Stewart Investors Asia Pacific Leaders Invests in large and mid-sized companies in the region which the managers believe are well managed and resilient. View Factsheet
Witan Investment Trust plc Highly diversified global investment trust which uses the specialist skills of a range of external managers. View Factsheet
Lindsell Train UK Equity Invests in durable, cash-generative businesses and focuses on cash preservation, with an absolute return approach. View Factsheet
Why were these funds selected: 

Providing the portfolio with a solid base are three UK invested funds, with different approaches. Capital Gearing Trust is heavily weighted to bonds, but it is completely flexible in its asset allocation and has an absolute return objective. HSBC FTSE All Share Index provides investors with broad exposure to UK companies of all sizes and, being a passive fund, this also avoids risk of choosing the wrong investment manager. CF Miton UK Value Opportunities aims to provide exposure to undervalued companies that produce strong growth, although we have reduced our holding because of a manager change, and added Lindsell Train UK Equity for its focus on strong household names.

The portfolio’s overseas exposure consists of two globally invested funds, Ardevora Global Equity and Witan. These provide both diversification and a spread of risk not just in terms of their geographical distribution but also due to their different investment approaches. And finally there is Stewart Investors Asia Pacific Leaders. Although it focuses on a region that has been going through a difficult time recently, we still believe in Asia’s higher growth economies and stock markets and expect they will recover before too long.

* 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 it is completely flexible in its asset allocation and has an absolute return objective.

2016

  • Reduce CF Miton UK Value Opportunities

    Holding reduced because of manager change

  • Buy Lindsell Train UK Equity

    To gain from absolute return approach and focus on cash preservation in challenging times

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.

  • Sell Legal & General UK Alpha

    Returns more erratic than expected.

  • Buy CF Miton UK Value Opportunities

    To benefit from managers who have shown a talent for finding undervalued companies which produce strong growth.

2014

  • Sell Monks

    Disappointing performance.

  • Buy Ardevora Global Equity

    To gain from fund's global mandate 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

2012

  • Buy HSBC FTSE All-Share Index

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

  • Buy Legal & General UK Alpha

    To gain exposure to undervalued, and potentially faster growing UK companies.

  • 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 Stewart Inv Asia Pacific Leaders

    To provide exposure to fast growing Pacific region via investment in large and mid-sized companies.

  • Buy Witan

    To provide global diversification gained through fund of funds approach.

Last updated: 
16 January 2017