Forward Glance

Strategy Report – Medium Portfolio

January 2020

1st November 2011 – 31st December 2019 – gross return since inception


Another year passes and a new year of opportunities awaits as our investment committee sat down to look at what the future may bring. Amongst this it is difficult to ignore the following:

Brexit may be moving forward following Johnson’s election victory. While the UK is set to leave by the end of January, the effects are going to be long-lived and getting agreements in place that provide meaningful economic improvements to where we were previously, will take a great deal longer.

The Boris bounce happened and has proved short term, proving a boon to your global portfolio. Currency will continue to have a significant impact on the sterling value of your investments, but the difficulties of predicting trends are such that we prefer to hold a basket of different currencies within the portfolio, rather than hedge the movements, at cost, back to sterling.

The mega trends that will dominate life and economic activity in the years ahead are technology (running through almost everything these days), decarbonisation with low cost and renewable energy, massive changes to healthcare through education and understanding of new drugs, and of course population trends – both aging and ultimately declining across the world.

Underpinning the current position is the low rate of interest on cash and with, this low inflation. While central banks and governments continue to provide stimulus and support, money is put to work in other assets to generate returns, and we see no signs of this abating any time soon.

There are areas in which we do have worries, including property within the UK, where we have seen liquidity issues amidst a changing backdrop and therefore, we are looking to reduce property levels where we currently hold it.

We are also looking to increase the sterling exposure within the portfolio, building on changes that we made to your portfolios last year, as the Brexit debacle moves onwards, and the UK becomes a more likely place to benefit from investment. We will continue to send you details of changes that are appropriate.

There are reasons to be extremely optimistic for the future and we will continue to look for opportunities to generate those long term returns to which you have become accustomed.

Portfolio analysis

Investment objectives

The medium portfolio offers a diverse fund range with the aim of achieving capital growth over the longer term. The portfolio has the ability to invest in a broad range of investments on a wide geographical basis. Equity exposure within this portfolio will vary between 40% – 65%.

Portfolio details

Inception date1/11/2011
Number of holdings30
Estimate yield2.04%
BenchmarkBoE Base Rate +2%
Total expense ratio0.51% (net – clean)
Volatility target range6% – 10%
Minimum investment time horizonFive years

Contribution to performance by fund – 1 year

1st July 2019 – 31st December 2019 – gross return (six months)

Gross statistics – 1st November 2011 – 31st December 2019