Mountains

Description

This page provides an interactive illustration of how a portfolio could be constructed according to a set level of risk by blending the Margetts’ Risk Rated funds.

It is designed to provide information about a risk rated portfolio and may help align expectations using historic data.

To the right is a descriptive summary of the risk category and the type of investor that is likely to be invested in line with this level of risk.

The information does not provide any guarantees. Past performance may not be a reliable guide to future returns. Investors may get back less than they invested as the value of investments can fall as well as rise.

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Performance

The chart below shows the performance of the portfolio over the last five years.

 

  • Investors willing and able to take a high level of risk in order to achieve higher returns
  • Volatility may be high with a wide range of monthly returns
  • Significant losses may be experienced in the medium term (typically less than 40%, however, there is greater risk that losses may be higher or may take longer to recover than lower risk portfolios)
  • A long time frame should be considered for this risk profile in excess of six to seven years
  • It is not advisable to take income from this portfolio as capital may be eroded, making losses harder to recover

Source*: Financial Express

Performance is based on a blend of the Margetts Risk Rated funds. Performance is shown on a bid to bid basis with income reinvested.

Past performance may not be a reliable guide to future returns. Investors may get back less than they invested as the value of investments can fall as well as rise.

Cumulative Performance

  1 Year
(%)
3 Years
(%)
5 Years
(%)
10 Years
(%)
Risk 5-6 Portfolio -2.24 33.15 44.28 172.26
Composite Benchmark 0.48 30.4 42.7 155.

Discrete Performance

  YTD
(%)
2017
(%)
2016
(%)
2015
(%)
2014
(%)
2013
(%)
Risk 5-6 Portfolio -3.60 14.09 20.08 1.77 6.99 13.64
 

Source*: Morningstar Direct

Portfolio Construction

Each portfolio is constructed by blending up to four of the Margetts risk rated fund of funds. Each portfolio is designed to meet a set level of risk and is constructed in the three steps of the investment process.

Mix of Margetts Funds

Click on the sections of the chart to learn more about the individual Margetts Risk Rated Funds


Step 1 - Long term allocation (Strategic Asset Allocation)

For each risk profile the investment managers have set a long term asset allocation. This allocation is based on modern portfolio theory and can be used to help set expectations, monitor performance and manage risk. Although the allocation won’t be representative of the portfolio today, it should be representative over the long term.

Click on the sections of the chart to find out more about the asset classes

Step 2 - Short term allocation (Tactical Asset Allocation)

The investment team meet weekly to discuss the current economic and investment environment. In light of the meeting the asset allocation is adjusted in line with the prevailing views of the team

The below illustrates the short term allocation for this portfolio and you can find out about the current views and strategy by reading the investment diary.

Click on the sections of the chart to find out more about the asset classes


Step 3 - Fund selection

The investment team select holdings to match the risk profile and short term allocation, creating a portfolio of investments which offers a high level of diversification.

The below list of funds are currently held by this portfolio.

Fund Name Allocation Asset Class/Region
Vanguard US Equity Index Acc 7% USA
Vanguard FTSE U.K. All Share Index Unit Trust Accumulation 6% UK
Fidelity Index US Fund P Accumulation 5% USA
Schroder Asian Income L GBP Accumulation 4% Asia Pacific
Henderson Emerging Markets Opportunities Fund I Acc 4% Emerging Markets
Threadneedle Global Emerging Markets Equity Fund Z Accumulation GBP 4% Emerging Markets
iShares North American Equity Index Fund (UK) D Acc 3% USA
JPM US Select C - Net Accumulation 3% USA
Legal & General Asian Income Trust C Acc 3% Asia Pacific
Baillie Gifford Pacific B Acc 3% Asia Pacific
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The information above is based on the current portfolio using the Margetts Risk Rated funds in the proportions shown. The funds are actively managed and the asset allocation and holdings are based on the position as at 30/11/2018 and may change without notice. Past performance is not a guarantee of future performance. The value of an investment and the income derived from it can fall as well as rise. Investors may get back less than they invested. Performance is calculated on a bid to bid basis with income reinvested and the portfolio is rebalanced monthly to the relevant proportions.