A balanced portfolio with a strong tilt towards international small-cap equities and growth

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Balanced Investors

This portfolio suits an investor seeking growth with a moderate to high risk tolerance and a long-term investment horizon. It's designed for those comfortable with the volatility associated with international small-cap equities, looking to diversify globally while aiming for higher returns. The investor likely values both capital appreciation and diversification across sectors and geographies.

Positions

  • BRANDES INTERNATIONAL SMALL CAP EQUITY FUND CLASS I
    BISMX - US1052627379
    90.02%
  • Vanguard Growth Index Fund ETF Shares
    VUG - US9229087369
    9.98%

This portfolio predominantly invests in the Brandes International Small Cap Equity Fund Class I, making up 90.02% of the allocation, complemented by the Vanguard Growth Index Fund ETF Shares at 9.98%. Such a composition indicates a strategic focus on international small-cap equities, aiming for growth through diversification across various sectors and geographies, albeit with a significant concentration in one fund.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.15%, with a maximum drawdown of -43.26%. These figures suggest a relatively high return potential, albeit with considerable volatility, as indicated by the significant drawdown. The days contributing to 90% of returns being concentrated in just 40 days further underscores the portfolio's susceptibility to short-term fluctuations.

Projection Info

Monte Carlo simulations, based on 1,000 iterations, project a wide range of outcomes, from a 5th percentile growth of 148.4% to a 67th percentile growth of 883.4%, with an annualized return across all simulations at 16.46%. This suggests a high potential for growth, though it's important to note that such projections are inherently uncertain and rely on historical data, which may not predict future performance accurately.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

With 98% allocated to stocks and the remaining 2% in cash, the portfolio is heavily weighted towards equities, reflecting a growth-oriented strategy. This high equity allocation is typical for portfolios seeking higher returns, albeit at the cost of increased volatility and risk, especially in the short term.

Sectors Info

  • Industrials
    26%
  • Consumer Staples
    14%
  • Health Care
    13%
  • Financials
    11%
  • Telecommunications
    9%
  • Technology
    8%
  • Consumer Discretionary
    6%
  • Real Estate
    4%
  • Basic Materials
    4%
  • Energy
    3%
  • Consumer Discretionary
    1%
  • Utilities
    1%

The sectoral distribution is broad, spanning industrials, consumer defensive, healthcare, and more, indicating a well-diversified approach within equities. However, the significant weighting towards industrials might expose the portfolio to sector-specific risks, suggesting a potential area for rebalancing to mitigate concentration risk.

Regions Info

  • Europe Developed
    41%
  • North America
    23%
  • Latin America
    14%
  • Japan
    9%
  • Asia Developed
    7%
  • Asia Emerging
    4%
  • Europe Emerging
    2%

Geographic allocation is diversified, with a notable emphasis on developed Europe and North America, complemented by exposures to Latin America, Japan, and Asia. This global distribution enhances diversification, potentially reducing risk while capturing growth across different markets.

Market capitalization Info

  • Small-cap
    36%
  • Mid-cap
    36%
  • Large-cap
    12%
  • Mega-cap
    7%
  • Micro-cap
    6%

The market capitalization breakdown shows a balanced exposure to small and medium-sized companies, which can offer higher growth potential but also increased risk compared to larger, more established companies. The presence of big and mega-cap exposures provides some level of stability to the portfolio.

Dividends Info

  • BRANDES INTERNATIONAL SMALL CAP EQUITY FUND CLASS I 1.20%
  • Vanguard Growth Index Fund ETF Shares 0.40%
  • Weighted yield (per year) 1.12%

The dividend yield of the portfolio stands at 1.12%, combining a higher yield from the Brandes fund with a lower yield from the Vanguard ETF. While not the primary focus, these dividends contribute to the portfolio's total return, offering a modest income stream in addition to capital appreciation.

Ongoing product costs Info

  • BRANDES INTERNATIONAL SMALL CAP EQUITY FUND CLASS I 1.11%
  • Vanguard Growth Index Fund ETF Shares 0.04%
  • Weighted costs total (per year) 1.00%

The total expense ratio (TER) of 1.00% reflects the costs associated with managing the portfolio's investments. While the Vanguard ETF is notably low-cost, the Brandes fund's higher fee significantly impacts the overall cost structure. Reducing costs where possible can enhance long-term returns by minimizing the drag on performance.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

The portfolio's current allocation suggests an emphasis on growth through international small-cap exposure. While the Efficient Frontier analysis could indicate whether a different allocation might offer a better risk-return trade-off, the existing strategy appears well-aligned with a balanced investor's growth objectives, assuming comfort with the associated volatility.

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