The Consistent Appreciation Builder

This portfolio was built to provide for large future outlays that current income cannot cover — with a strong emphasis on both preserving and growing capital. Since coming under our management in 2000, none of the capital has been lost while appreciation has been maintained near the target return.

This investor came to us in 2000 with a cash portfolio at the height of the IT bubble burst. To protect capital at the outset we applied patience — investing only a small percentage in our best equity selections initially, then taking advantage of the downturn by increasing exposure at favourable valuations. By the time the market bottomed in 2003 the portfolio was more fully invested.

Capital appreciation has since been maintained at a rate that more than beats inflation, with moderate volatility compared to broad market indices. The charts below illustrate the portfolio's investment profile and performance under our management.

Tactical asset allocation

Value invested relative to cost of living