Performance

Performance

As each current client has a unique requirement, and therefore mainly invest through The Chichester Account, and also having started their investing at different times it would be inaccurate to show an amalgamated total return for these clients. Therefore in order to see how your possible portfolio may have performed some Model Portfolios were setup with various different approaches to risk.

The Model Portfolios started on 4th January 2011 with £100,000 each and, as with all purchases, there are initial obstacles to overcome before a profit can be clearly seen. These include overcoming the Spread (the difference between Bid and Offer or Sell and Buy prices) and the fact that very few dividends will arrive into the portfolio for the first few months. Expenses have not been included in order to be aligned with the index.

It was decided that in order to give a fair view of what investments were currently favoured all the holdings were purchased on day-one with no attempt to purchase when the timing seemed right. Coincidentally the Emerging Markets and Far Eastern holdings were bought at a high point in the market. Therefore you can see from the graphs below that this is what would have happened to your portfolio were you to already have these holdings. Consequently, the Model Portfolios are more attuned to a past reality as it goes forward. As it turned out the timing was interesting because not only did a large amount of investment capital leave the Emerging and Far Eastern economies but the Arab nations ousted many of their leaders and Japan suffered from the catastrophic earthquake and consequential tsunami. It is also interesting to note that the lower risk portfolio, because it is offering some downside protection, has actually fared better than the higher risk portfolio after six months, but it is expected to reverse over the medium to long term. The higher risk portfolio is akin to The Winchester Extra Growth Account.

Performance Graphs of various model portfolios

Notes


  • The FTSE All-Share index and the portfolios show dividends reinvested.

  • Fees are not included in either the index or the portfolios.

  • Although income is paid out monthly after the first three months for The Salisbury Extra Income Account, this amount is added back in to the valuation calculation. It therefore effectively shows a Total Return. However this remains as a cash position effectively and therefore does not grow thereby dragging somewhat on performance.