Growth Model Strategy

To provide capital growth with some income through an equity focused portfolio complemented with other assets

Performance

The Growth Model Strategy returned +3.1% in March, net of management fees and platform costs. The total return of the strategy since inception (31st December 2012) to 31st March 2021 is +82.2%, net of fees and platform costs, annualising at +7.5% per annum.

Investment Objective and Approach

The objective of the Growth Model Strategy, over the medium term, is to achieve an above inflation return through a combination of income and capital growth. A typical investor would be seeking long-term growth. The equity focused nature of the investments makes the strategy suitable for investors seeking exposure to broad equity markets, with a moderate amount of exposure to other assets.

The model strategy will invest in ETFs and other collective funds. The manager’s approach is to utilise passive instruments where possible to minimise cost. However, active managers are considered for each asset class and used in a minority of cases where it is felt justified. The firm’s investment philosophy advocates complementing a core of traditional assets with exposure to risk premia such as value, low volatility and size. Within equities, a global approach is taken with only a moderate UK bias. For alternative investments, lowly correlated, daily liquid funds are used.