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Model Portfolio: 19 Dec 2006
The Fixed Income Investor model portfolio. Regular editorial updates on p&l, reinvestment etc.     
        

From the first quarter of 2007, we will be launching the Fixed Income Investor model portfolio, based on an initial sum of £100,000. The portfolio will serve to illustrate some of the techniques used in selecting assets and managing risk and will be composed of Sterling investment grade bonds chosen from Gilts, Corporates and other fixed income securities. The primary aim of the model portfolio will be to generate income and preserve capital. Capital gains will be a secondary criteria.

Ground rules for the model portfolio will be as follows:

  • Sterling-denominated, investment grade bonds only*
  • "Ladder" structure to help immunise against interest rate risk
  • Diversification of ten holdings, or cash equivalent

 

*In the event of an existing holding being downgraded to below investment grade, the position may be kept at the analystís discretion.