Picking Perfect Portfolios

Variety really is the spice of life. Especially in investment terms. Fill your portfolio with lots of similar investments and you will either enjoy great success or suffer significant losses. Spread the asset class, instrument type, location and risk ratios and you are far more likely both to enjoy the warm sunshine of the good times……..and to weather the storms that life sends.

I was recently asked what the perfect portfolio looks like and I plumped for a strategy that I am working to implement for a client at the moment. He is a balanced investor who has a small appetite for well qualified risk. His portfolio will eventually look like this:

Property and directly managed investments/businesses: 50%

·         Family home – £570,000

·         Holiday home – £280,000

·         2 x rental properties – £220,000

·         2 x petrol stations – £400,000

·         Total value: £1.47m – Total net yield: £36,000 per annum


Arms length investments: 35%

·         UK property fixed return loan notes – £579,000

·         Student Accommodation with contracted fixed return in UK – £350,000

·         Algorithm trading – £100,000

·         Total value – £1.029m – £139,850


Cash: 15%

Total value: £294,000 – yield £14,700 per annum

Clearly my client´s property and directly managed investments are the least lucrative in terms of return but probably most enjoyable in terms of his quality of life. The things that we manage directly for him so that he doesn´t have to give him an income of nearly 14% per annum with strong asset security (except the trading), and he has more than enough cash to allow him to deal with life´s emergencies, opportunities and essentials.

Interestingly he says the best thing about the investments that we found for him isn´t the yield (which he is very happy with), but the fact that he doesn´t have to think about them – time is way more important than money!

If you would like us to help you to rebalance your portfolio – and have more time for life in all its fullness then get in touch – jon@investmentowl.com