A balanced portfolio with a strong focus on global equities and value investing

Report created on Aug 25, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

4/5
Broadly Diversified
Less diversification More diversification

Positions

The portfolio is composed of two ETFs: iShares MSCI ACWI UCITS ETF USD (Acc) GBP, making up 75%, and iShares MSCI World Value Factor UCITS, accounting for the remaining 25%. This composition indicates a strong inclination towards global equity markets with a specific emphasis on value investing. The allocation between these two ETFs suggests a strategy that aims to capture worldwide market performance while seeking additional value-driven growth opportunities. Given the broad diversification across sectors and geographies, this portfolio is designed to mitigate specific risks associated with individual markets or sectors.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 12.28%, with a maximum drawdown of -25.91%. These figures highlight the portfolio's ability to generate substantial returns while also experiencing significant volatility. The max drawdown figure is particularly important as it provides insight into the portfolio's resilience during market downturns. Comparatively, the performance metrics suggest a balance between risk and return, aligning with the portfolio's balanced risk profile.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential returns for this portfolio. With 988 out of 1,000 simulations producing positive returns, there's a strong likelihood of future gains. However, the broad range from the 5th percentile (74.9% return) to the 67th percentile (491.0% return) underscores the inherent uncertainty in these projections. Investors should understand that while these simulations can offer valuable insights, they cannot guarantee future performance.

Asset classes Info

  • Stocks
    100%

This portfolio is exclusively invested in stocks, providing a high growth potential but also higher volatility compared to portfolios with a mix of asset classes. A 100% allocation to equities is typical for investors with a higher risk tolerance and a long-term investment horizon. Diversification within this single asset class is achieved through the global exposure of the ETFs, yet the lack of bonds or alternative investments means the portfolio could be more susceptible to market swings.

Sectors Info

  • Technology
    27%
  • Financials
    17%
  • Industrials
    11%
  • Consumer Discretionary
    10%
  • Health Care
    9%
  • Telecommunications
    9%
  • Consumer Staples
    6%
  • Energy
    4%
  • Basic Materials
    3%
  • Utilities
    3%
  • Real Estate
    2%

The sector allocation shows a heavy tilt towards Technology and Financial Services, combined accounting for 44% of the portfolio. This concentration in high-growth and cyclically sensitive sectors could lead to increased volatility. However, it also presents an opportunity for significant returns, especially in bullish market conditions. The presence of Industrials, Consumer Cyclicals, and Healthcare adds a layer of diversification, potentially mitigating risks associated with sector-specific downturns.

Regions Info

  • North America
    61%
  • Europe Developed
    19%
  • Japan
    10%
  • Asia Emerging
    4%
  • Asia Developed
    4%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

With 61% of assets in North America and significant exposures to Europe Developed and Japan, the portfolio is well-positioned to benefit from the growth in major developed markets. However, the relatively low allocation to emerging markets (4% in Asia Emerging and 1% in Latin America) might limit exposure to high-growth regions. Increasing investments in emerging markets could offer enhanced diversification benefits and access to faster-growing economies.

Market capitalization Info

  • Mega-cap
    43%
  • Large-cap
    38%
  • Mid-cap
    18%
  • Small-cap
    1%

The focus on Mega and Big cap stocks (81% combined) suggests a preference for stability and lower volatility associated with larger, well-established companies. However, the minimal exposure to Small cap stocks (1%) might limit potential high-growth opportunities often found in smaller companies. Considering a slight increase in Small and Medium cap allocations could enhance growth prospects while adding diversification benefits.

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.

Click on the colored dots to explore allocations.

The current portfolio demonstrates a well-thought-out balance between risk and return, as evidenced by its historical performance and Monte Carlo projections. However, optimizing the portfolio using the Efficient Frontier could further enhance this balance. This method could identify an asset allocation that offers the highest expected return for a given level of risk. While the portfolio is already performing well, there's always room for incremental improvements in efficiency.

Ongoing product costs Info

  • iShares MSCI World Value Factor UCITS 0.30%
  • iShares MSCI ACWI UCITS ETF USD (Acc) GBP 0.20%
  • Weighted costs total (per year) 0.22%

The Total Expense Ratio (TER) of 0.22% is impressively low, enhancing the portfolio's attractiveness by minimizing the drag on returns due to costs. This efficient cost structure is crucial for long-term investment success, as lower costs directly translate to higher net returns for investors. Maintaining this focus on cost efficiency should remain a priority.

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