IpsoFacto Investor model portfolios

Investment approach

IpsoFacto is a one stop advice shop for the DIY investor. Our aim is to provide intelligent information with integrity. The strong IpsoFacto investor investment performance is based on rigorous analysis. We use value investing principles inside a structured logical approach to provide regular investment updates to our model portfolios.

Investment performance versus benchmark

The table below shows the strong performance of our equity and investment trust models. As you can see since active launch on 31.03.12 our equity model, taking into account dealing charges, has increased by 63.1% compared to 67.7% for the FTSE All Share.

IpsoFacto Model Performance Capital plus Income Returns to 30.06.19
	YTD	1 Year	3 Years	5 Years	Since launch 31.03.12
IpsoFacto Investment Trust Model*	15.0%	2.8%	43.8%	49.9%
IpsoFacto Equity Model**	4.7%	-10.5%	14.6%	17.7%	63.1%
FTSE All Share	12.9%	0.4%	27.0%	32.3%	67.7%
IpsoFacto Bond Model***	0.9%	1.4%	0.7%	14.9%
Bond Benchmark (total return)****	4.1%	5.7%	6.1%	28.5%
*Based on £100,000 portfolio after estimated dealing charges, + 119.9% since launch (30.04.12) v. 67.3% FTSE All Share. **Based on £200,000 portfolio after estimated dealing charges (active launch 31.03.12). ***Based on £30,000 portfolio after estimated dealing charges; 10.9% since launch (01.06.12) v. 20.4%. Bond benchmark 50% 5  – 10 year and 50% 10 – 15 year Gilts UK FTSE Actuaries Indices. ****Bond Benchmark is total return, ie. includes the effect of income reinvested in capital. This benefits performance v. the model when bond returns are positive.

 

IpsoFacto Ready Made Portfolios Capital plus Income Returns to 30.06.19
	YDT	1 Year	3 Years	5 Years	Since launch 29.06.12
Four Specialist Portfolios Combined (Flexible)*	12.5%	4.8%	38.1%	49.9%	94.8%
FTSE All Share	12.9%	0.4%	27.0%	32.3%	73.0%
Capital Accumulation**	8.2%	2.6%	N/a	N/a
Balanced***	9.5%	2.3%	N/a	N/a
CPI (inflation)	0.7%	2.0%	7.2%	N/a
Managed Income****	5.1%	1.4%	N/a	N/a
*Based on £100,000 portfolio after estimated dealing charges invested in our four specialist portfolios, Income, International, Contrarian and Alternative, launched 29.06.12 **Based on £200,000 portfolio after estimated dealing charges, + 5.4% since launch on 29.03.18. The portfolio’s objective is to grow capital at a steady pace at an average level of risk. ***Based on £200,000 portfolio after estimated dealing charges, + 6.3% since launch on 29.03.18. The portfolio’s objective is to achieve an annual income yield of over 3% and grow capital above the rate of inflation. Since launch Capital growth has been 1.8% (after initial investment costs of 0.75%), CPI 2.8% and the average annual yield 3.6%. ****Based on £100,000 portfolio after estimated dealing charges, + 11.0% since launch on 31.12.16. The portfolio’s objective is to generate a high income through an active strategy while at least preserving capital in real terms. The latest 1 year yield is 4.2%.

 

Asset allocation

The IpsoFacto Asset Allocation Model selects between equities, bonds and cash according to a matrix which is determined by real yields and riskiness of asset class. The back testing of this model, using the relevant indices, shows good risk adjusted returns compared to the FTSE All Share to 28.06.19, % versus 131.4% over ten years and 8.2% versus 10.3% over five years, with much lower volatility; these returns are achieved despite always holding an element of cash in a strong period for equities.

 

 

 

 

 

 

 

Annual Average Returns to 28.06.19	1 Year	3 Years	5 Years	10 Years
FTSE All Share	0.6%	8.6%	6.3%	10.3%
Gilts	4.7%	1.5%	4.0%	4.5%
Cash	0.7%	0.5%	0.5%	0.5%
IpsoFacto Asset Allocation	1.1%	4.8%	4.3%	8.2%

 

Equity model performance

The graph below shows the performance of our equity portfolio for the five years to 29.03.19 in capital terms – it is up 27.8% versus a gain of 32.5% for FTSE All Share. We update this quarterly.

 

 

 

 

 

 

 

Discrete Annual Capital Returns	RRR	FTSE All Share
26.06.15	2.8%	3.8%
01.07.16	-6.8%	-8.6%
30.06.17	9.5%	18.1%
29.06.18	6.4%	-2.4%
28.06.19	-15.3%	4.2%

Charges are not included in the five year figures. Stamp duty, the bid/offer spread and commission will reduce returns. Model selected annually until 31.03.12 and thereafter monthly. Performance figures are compiled by IpsoFacto Investor.com, based on prices extracted from the Financial Times.