Investment: how our philosophy works

We let portfolios breathe allowing the underlying holdings to do their job

Below are performance charts for a selection of Brunel Wealth Management portfolios: Cautious, Balanced and Adventurous which are compared against the FTSE All Share.

The FTSE All Share is not a true benchmark because it is made up of 100% equities. Our clients’ portfolios only contain a percentage of equities. We use the FTSE All Share to give general market context and because it is the one most often reported in UK market news bulletins.

The 6 months show the impact on markets of Brexit

bwm-portfolios-6-months-vs-ftse-all-share

12 months include Brexit and the fallout from the markets going wobbly over China last year

bwm-portfolios-12-months-vs-ftse-all-share

Since the inception of our clients’ portfolios on 1st January 2012, the markets and our clients’ portfolios have experienced significant market meltdowns such as the Euro Crisis, Greece (twice), the fall out in the China market and most recently Brexit.

Brunel Wealth Management portfolios from 1st January 2012

bwm-portfolios-since-inception-vs-ftse-allshare

The past performance is evidence that our philosophy is working.

Our approach is to hold a low cost, diversified portfolio. Our underlying philosophy is not to second guess the markets but to take advantage of what the whole market has to offer. It means not trying to control the markets using complex products such as hedge funds and structured products and sticking to a rebalancing programme when our portfolios become too weighted towards certain asset classes. We let portfolios breathe allowing the underlying holdings to do their job.

This four year scatter graph shows that our clients’ portfolios display lower levels of volatility but delivered higher returns than the FTSE All Share

bwm-scatter-chart-4-year-comparison

Steve Brady, Director
Brunel Capital Partners & Brunel Wealth Management