Portfolios / Investment ideas

Visitors may find the following resources of interest when putting together an investment portfolio:

Vanguard LifeStrategy Funds could provide a one-stop solution for many investors.  Find out more information at https://www.vanguardinvestor.co.uk/what-we-offer/life-strategy-products

The table below shows the calendar year performance figures for the Vanguard LifeStrategy Funds. This should give prospective investors a feel for average returns but more importantly their variability.

Vanguard LifeStrategy Fund Performance
Name 2012 2013 2014 2015 2016 2017 2018 2019 Avg
LS 20% Equity 6.24 2.44 9.79 1.06 10.39 4.40 -1.14 9.86 4.91
LS 40% Equity 7.89 6.62 9.64 1.85 14.35 6.44 -2.25 12.45 6.57
LS 60% Equity 9.29 11.13 9.36 2.53 18.27 8.67 -3.10 15.24 8.32
LS 80% Equity 10.60 15.95 9.07 3.09 22.15 10.91 -4.04 18.06 10.03
LS 100% Equity 11.81 20.81 8.97 3.49 26.07 13.27 -5.04 21.03 11.76

 

MoneyWeek magazine has an ongoing, low turnover investment trust portfolio reviewed every six months or so. More information can be viewed at

https://moneyweek.com/investments/funds/investment-trusts/investment-trust-model-portfolio

MoneyWeek magazine also suggests a  minimal turnover, all-weather portfolio made up of low-cost ETFs which reflects the widely-adopted 60/40 split between riskier assets and safer ones. The portfolio was last updated in June 2020. The ticker codes for suggested ETFs provided by iShares and Vanguard are in brackets.

The riskier assets (which make up 60% of the portfolio) comprise the following:

  • UK and Europe large-cap shares (LSE:VEUR) – 15%
  • UK Mid-cap shares (LSE:VMID) – 10%
  • US shares (LSE:VUSA) – 5%
  • Japan shares (LSE:VJPN) – 10%
  • Emerging market shares (LSE:EMIM) – 10%
  • Property shares (LSE:IWDP) – 10%

The safer assets making up the remaining 40% are:

  • UK conventional government bonds (LSE:VGOV) – 10%
  • US inflation-linked government bonds (LSE:ITPS) – 10%
  • Gold (LSE:SGLN) – 10%
  • Cash – 10%

There’s a wealth of investment material to be found on the internet, as well as more traditional information sources such as investment magazines and the personal finance sections of newspapers.  There are also a large number of ‘tipsheets’ available by subscription.  These often focus on particular sectors of the stock market that are less researched by larger financial institutions such as small companies. Such tipsheets often run their own theoretical portfolios that give an indication of their track record of its recommendations.  Be warned, however – although these may look impressive, results are rarely independently verified.

Personally, I find the weekly magazine “MoneyWeek” and the Money section of Saturday’s Daily Telegraph excellent sources for personal finance and investment ideas and information.

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