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Model Portfolios

Four ready-made portfolios selected and managed?by our experts. Designed to help you realise your financial goals.

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Looking for a ready-made portfolio to fit your investment goals??Then look no further than our new model portfolios. Designed to make it easier for investors, these four portfolios offer either growth or?income options, with a choice of actively managed investments or low-cost tracker funds. Selected and managed by ii with input from?the team who brought you the Money Observer portfolios, whose performance has made them a popular choice with investors. Full details of our methodology, including how the model portfolios are constructed and managed, as well as the full selection process can be found here.

Our new model portfolios are designed to help investors realise their financial goals. They comprise our highest-conviction choices from the whole fund universe and are built upon a proven selection process. Created with an asset allocation to global equities of between 80% and 100%, they are designed for investors who have at least five years before they need the money.

Moira O'Neill, Head of Personal Finance at interactive investor

The information we provide in respect of the ii Model Portfolios is an opinion provided by ii or one of its partners on whether to buy a specific investment or portfolio. None of the opinions provided are a “personal recommendation”, therefore you should ensure that any investment decisions you make are suitable for your personal circumstances. Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

What will it cost to buy and sell the model portfolios?

You will have to buy and sell each constituent individually. Lump-sum investment starts from as little as £3.99 online with ii, depending on the Service Plan you select. You can also invest monthly using our free regular investment service. A 0.5% UK stamp duty applies when you buy investment trust shares and government charges apply to some investments.

Our ready-made portfolios

Active growth

A portfolio of 10 actively managed funds and trusts for investors building their assets.

Active growth

This portfolio is designed for investors who are building their wealth and are interested in investing in active fund managers, who are able to select what sectors and stocks they want.

The following table lists the constituents of the active growth portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

Investment Portfolio Weighting Ongoing Charge (OCF) Product Cost Allocation of £20,000
Liontrust Special Situations I Inc 10% 0.87% 1.16% £2,000
Castlefield CFP SDL UK Bufftlgy Gen Inc 10% 1.19% 1.36% £2,000
Scottish Mortgage Ord 15% 0.37% 0.83% £3,000
Fidelity Global Dividend W Acc 10% 0.92% 1.09% £2,000
Fundsmith Equity I Acc 15% 0.95% 0.96% £3,000
F&C Investment Trust Ord 10% 0.57% 1.16% £2,000
JPMorgan Emerging Markets Ord 10% 0.99% 1.07% £2,000
Jupiter Strategic Bond I Acc 10% 0.74% 0.95% £2,000
Capital Gearing Ord 5% 0.68% 1.18% £1,000
Standard Life Private Eq Ord 5% 1.12% 5.50% £1,000
Total / Weighted Average 100% 0.82% 1.28%* £20,000

* This is the combined figure for the portfolio, based on the current portfolio weighting. Data correct as at 30.04.2020.

In addition, ii charges a monthly Service Plan fee?and a separate SIPP fee. Our monthly fee comes with trading credits. Trade costs are usually £7.99, or £3.99?for our Super Investor Service Plan?and free for regular investments. Please note that UK Stamp Duty Reserve Tax is not tiered and is charged at 0.5% on Investment Trusts. For full details on our charges please see our Rates & Charges.

Timeline

April 2020

Buy

Scottish Mortgage Trust
Global exposure to exciting disruptive growth companies, public and private, selected by highly experienced managers at Baillie Gifford.

April 2020

Buy

Standard Life Private Equity Trust
High conviction portfolio of third-party private equity funds selected by Aberdeen Standard Investments.

April 2020

Annual Review

Increase in the number of funds for greater diversification and a full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.

January 2019 Portfolio launched

Active income

Please note: As a result of recent extreme economic conditions, many companies have temporarily stopped paying dividends or have significantly reduced the amount they are paying out. This means the income that is likely to be achieved by funds and trusts in the near future may be far less than the historic yield quoted in the portfolios.

This portfolio is designed for investors who are looking for income and are interested in investing in active fund managers, who are able to select what high yielding stocks they want.

The following table lists the constituents of the active income portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

Investment Portfolio Weighting Ongoing Charge (OCF) Product Cost Historic Yield Allocation of £20,000
City of London Ord 10% 0.39% 0.94% 5.76% £2,000
Man GLG UK Income Professional Inc D 10% 0.90% 1.70% 6.76% £2,000
Fidelity Global Dividend W Inc 15% 0.92% 1.09% 2.84% £3,000
Bankers Ord 10% 0.50% 0.94% 2.35% £2,000
Artemis Global Income I Inc 15% 0.85% 1.42% 3.86% £3,000
Murray International Ord 10%` 0.69% 1.01% 5.68% £2,000
Utilico Emerging Markets Ord 10% 1.10% 1.80% 3.89% £2,000
Jupiter Strategic Bond I Inc 10% 0.74% 0.95% 3.50% £2,000
Standard Life Private Equity 5% 1.12% 5.50% 2.70% £1,000
BMO Commercial Property 5% 1.18% 2.36% 4.42% £1,000
Total / Weighted Average 100% 0.81%* 1.50%* 4.16%* £20,000

*These are the combined figures for the portfolio, based on the current portfolio weighting. Data correct as at 30.04.2020.

In addition, ii charges a monthly Service Plan fee and a separate SIPP fee. Our monthly fee comes with trading credits. Trade costs are usually £7.99, or £3.99 for our Super Investor Service Plan and free for regular investments. Please note that UK Stamp Duty Reserve Tax is not tiered and is charged at 0.5% on Investment Trusts. For full details on our charges please see our Rates & Charges.

Timeline

May 2020

Buy

Jupiter Strategic Bond Fund
‘Go-anywhere’ bond fund that invests in the best opportunities globally, across global credit and sovereign bond markets. Derivatives may be used to manage risk and all foreign currency exposure is hedged back to sterling.

May 2020

Sell

Royal London Sterling Extra Yield Bond Fund
Replaced with Jupiter Strategic Bond Fund.

April 2020

Dividend Suspension

BMO Commercial Property Trust
The trust has temporarily suspended its future monthly dividend payments amid the uncertainty brought about by the coronavirus pandemic. It last paid a 0.5 pence per share dividend on 31 March. The suspension is aimed at preserving the long-term value of the trust and bolster its cash reserves.

April 2020

Buy

City of London Trust
UK equities portfolio with a bias towards large, multinational companies. A conservative management style employed by the manager at Janus Henderson prioritises sustainable income and long-term capital growth.

April 2020

Sell

Threadneedle UK Equity Income Fund
Replaced with Super 60 rated City of London Trust.

April 2020

Buy

Fidelity Global Dividend Fund
Sound, high-conviction portfolio of quality, global large capitalisation companies with a focus on total return and downside protection.

April 2020

Sell

Henderson International Income Trust
Replaced with Super 60 rated Fidelity Global Dividend Fund.

April 2020

Buy

Murray International Trust
Globally diversified portfolio of high-quality defensive stocks. Bonds are also used to enhance the dividend yield as well as to diversify equity exposure. Managed by Aberdeen Standard Investments.

April 2020

Annual Review

Increase in the number of funds for greater diversification and a full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.

August 2019

Sell

Renewables Infrastructure Trust
Premium too high. Replaced with BMO Commercial Property and Standard Life Private Equity Trusts.

August 2019

Buy

BMO Commercial Property Trust
Diversified portfolio of prime UK commercial property.

August 2019

Buy

Standard Life Private Equity Trust
High conviction portfolio of third-party private equity funds selected by Aberdeen Standard Investments.

January 2019 Portfolio launched

Low-cost growth

This portfolio is designed for investors who are building their wealth and are interested in investing in low-cost tracker funds, who replicate an index and where there is no fund manager discretion.

The following table lists the constituents of the low-cost growth portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

Investment Portfolio Weighting Ongoing Charge (OCF) Product Cost Allocation of £20,000
Fidelity Index UK P Acc 10% 0.06% 0.04% £2,000
Vanguard FTSE 250 UCITS ETF 10% 0.10% 0.26% £2,000
iShares Core MSCI World ETF USD Acc GBP 15% 0.20% 0.21% £3,000
L&G Global 100 Index I Acc 15% 0.14% 0.13% £3,000
Vanguard Glbl Small-Cap Idx GBP Acc 15% 0.31% 0.35% £3,000
Fidelity Index Emerging Markets P Acc 15% 0.20% 0.54% £3,000
Vanguard Global Bond Index GBPH Acc 10% 0.15% 0.28% £2,000
WisdomTree Enhanced Cmdty ETF USD Acc GBP 5% 0.35% 0.81% £1,000
iShares Glb Prpty Secs Eq Idx (UK) D Acc 5% 0.18% 0.21% £1,000
Total / Weighted Average 100% 0.19%* 0.29%* £20,000

* This is the combined figure for the portfolio, based on the current portfolio weighting. Data correct as at 30.04.2020.

In addition, ii charges a monthly Service Plan fee?and a separate SIPP fee. Our monthly fee comes with trading credits. Trade costs are usually £7.99, or £3.99?for our Super Investor Service Plan?and free for regular investments. Please note that UK Stamp Duty Reserve Tax is not tiered and is charged at 0.5% on Investment Trusts. For full details on our charges please see our Rates & Charges.

Timeline

April 2020

Buy

Vanguard FTSE 250 ETF
Tracks the performance of the FTSE 250 Index of mid-size stocks in the UK.

April 2020

Buy

L&G Global 100 Index Fund
Tracks the performance of the S&P Global 100 Index of multinational companies.

April 2020

Annual Review

Increase in the number of funds for greater diversification and a full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.

January 2019 Portfolio launched

Low-cost income

Please note: As a result of recent extreme economic conditions, many companies have temporarily stopped paying dividends or have significantly reduced the amount they are paying out. This means the income that is likely to be achieved by funds and trusts in the near future may be far less than the historic yield quoted in the portfolios.

This portfolio is designed for investors who are building their wealth and are interested in investing in low-cost tracker funds, who replicate an index and where there is no fund manager discretion.

The following table lists the constituents of the low-cost growth portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

Investment Portfolio Weighting Ongoing Charge (OCF) Product Cost Historic Yield Allocation of £20,000
Vanguard FTSE U.K. Eq Inc Idx Inc 10% 0.14% 0.21% 6.93% £2,000
SPDR? S&P UK Dividend Aristocrats ETF 10% 0.30% 0.73% 5.03% £2,000
SPDR? S&P Global Div Aristocrats ETF 15% 0.45% 0.58% 4.77% £3,000
WisdomTree Glbl Eqlty Div Gr ETF USD Acc GBP 15% 0.38% 0.40% 2.53% £3,000
Vanguard FTSE All-World High Div Yld ETF 15% 0.29% 0.33% 4.09% £3,000
WisdomTree Emerging Mkts Eq Inc ETF GBP 15% 0.46% 0.55% 5.60% £3,000
Vanguard Global Bond Index GBPH Inc 10% 0.15% 0.28% 1.85% £2,000
SPDR Morningstar Multi-Asset Infrastructure ETF Inc 5% 0.40% 0.40% 2.54% £1,000
iShares Glb Prpty Secs Eq Idx (UK) D Inc 5% 0.18% 0.21% 3.28% £1,000
Total / Weighted Average 100% 0.33%* 0.43%* 4.22%* £20,000

* This is the combined figure for the portfolio, based on the current portfolio weighting. Data correct as at 30.04.2020.

In addition, ii charges a monthly Service Plan fee?and a separate SIPP fee. Our monthly fee comes with trading credits. Trade costs are usually £7.99, or £3.99?for our Super Investor Service Plan?and free for regular investments. Please note that UK Stamp Duty Reserve Tax is not tiered and is charged at 0.5% on Investment Trusts. For full details on our charges please see our Rates & Charges.

Timeline

April 2020

Buy

SPDR? S&P UK Dividend Aristocrats ETF
Tracks the performance of the S&P UK High Yield Dividend Aristocrats Index of the 40 highest dividend-yielding UK companies.

April 2020

Buy

WisdomTree Global Quality Dividend Growth ETF
Tracks the performance of the WisdomTree Global Developed Quality Dividend Growth, a fundamentally weighted index that is comprised of companies with the best combined rank of growth and quality factors from global developed markets.

April 2020

Buy

WisdomTree Emerging Markets Equity Income ETF
Tracks the WisdomTree Emerging Markets Dividend, fundamentally weighted index and comprises the highest dividend-yielding stocks.

April 2020

Sell

iShares EM Dividend ETF
Replaced with WisdomTree Emerging Markets Equity Income ETF.

April 2020

Annual Review

Increase in the number of funds in the portfolio for greater diversification and a full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.

January 2019 Portfolio launched

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.

The information we provide in respect of the ii Model Portfolios is an opinion provided by ii or one of its partners on whether to buy a specific investment or portfolio. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor.

Any changes to the ii Model Portfolio constituents and the rationale behind those decisions will be communicated through the?Quarterly Investment Outlook.

ii adheres to a strict code of conduct. Members of ii staff may hold shares or units in investments which make up the ii Model Portfolios, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of the ii Model Portfolios are subject to a personal account dealing restriction. This prevents them from placing a transaction in these portfolios or the underlying specified constituents of each portfolio for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of the ii Model Portfolio options.

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