Our client portfolios contain both investment trusts and exchange traded funds (ETFs), with the former being the larger weighting because of their superior record of performance relative to unit trusts and markets.
The advantages of using ETFs as part of a balanced portfolio are covered by the page Exchange Traded Funds. This page highlights the potential of a portfolio consisting solely of investment trusts.
Background
Since 2009, John Baron has been reporting on two real investment trust portfolios in his popular monthly column in the Investors Chronicle magazine (where they are called ‘Growth’ and ‘Income’). These are two of nine real portfolios managed in real time on the website www.johnbaronportfolios.co.uk (where they are called ‘Summer’ and ‘Autumn’) which achieve a range of risk-adjusted strategies and income levels.
What £100 invested on 1 January 2009 would be worth
as at 31 December 2023
Source: Investors Chronicle, Office of National Statistics (ONS), FTSE Russell Indices, MSCI PIMFA Indices
Extent of outperformance
In summary, £100 invested in the Growth Portfolio on 1st January 2009 was worth £502.65 on 31st December 2023. £100 invested in the Income Portfolio was worth £377.31. This compares with:
- £126.93 if left in a Savings Account
- £145.43 if linked to CPIH (Consumer Price Index)
- £268.38 for the PIMFA MSCI Income Index
- £307.47 for the FTSE 100 Index
- £328.19 for the FTSE All Share
- £346.15 for the PIMFA MSCI Growth Index
Please note:
- All figures are calculated on a total return basis and portfolio figures include all costs.
- These graphs are for illustrative purposes only. Past performance is not a guide to future returns and the portfolios may not be suitable investments for every investor.
- Baron & Grant Investment Management Limited’s client portfolios may or may not perform as well as the portfolio shown in this illustration.
Consistency of performance
Consistency of performance is also important for our clients. Since its launch on 1st January 2009, John Baron’s Growth Portfolio has outperformed its MSCI PIMFA Growth benchmark in 9 of the 15 years of its existence. The Income Portfolio also has a similar track record of consistent outperformance.
