Interactive Investor

Model Portfolios

Five ready-made portfolios selected and managed by our experts. Designed to help you realise your financial goals.


Model portfolios - we've done the hard work for you

Looking for a ready-made portfolio to fit your investment goals? Then look no further than our model portfolios. Designed to make selections easier for investors, these five portfolios offer either growth or income options, with a choice of actively managed investments or low-cost tracker funds

Model Portfolios - Moira O'Neill October 2020

Full details of our methodology, including how the model portfolios are constructed and managed, as well as the full selection process can be found here.

Read: Your guide to our five model portfolios

Our model portfolios are designed to help investors realise their financial goals. They comprise our highest-conviction choices from the whole fund universe and are built upon a proven selection process. Created with an asset allocation to global equities of between 80% and 100%, they are designed for investors who have at least five years before they need the money.


Don’t miss our monthly model portfolio updates by signing up to our ii newsletter. Our updates, published mid-month, run through fund performance and highlight any changes that have been made to our models. Register now.

The information we provide in respect of the ii Model Portfolios is an opinion provided by ii or one of its partners on whether to buy a specific investment or portfolio. None of the opinions provided are a “personal recommendation”, therefore you should ensure that any investment decisions you make are suitable for your personal circumstances. Past performance of the underlying constituents is not a guarantee of future performance. Remember, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

What will it cost to buy and sell the model portfolios?

You will have to buy and sell each constituent individually. Lump-sum investment starts from as little as £3.99 online with ii, depending on the Service Plan you select. You can also invest monthly using our free regular investment service. A 0.5% UK stamp duty applies when you buy investment trust shares and government charges apply to some investments.



Active growth

This portfolio is designed for investors who are building their wealth and are interested in investing in actively managed funds, whose managers are able to select the investments they want, rather than passively tracking an investment index. 

The following table lists the constituents of the active growth portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

InvestmentPortfolio WeightingOngoing Charge (OCF)Product CostAllocation of £20,000
Liontrust Special Situations I Acc10%0.83%0.92%£2,000
Castlefield CFP SDL UK Bufftlgy Gen Acc10%1.19%1.41%£2,000
Scottish Mortgage Ord15%0.37%0.86%£3,000
Fidelity Global Dividend W Acc10%0.93%1.11%£2,000
Fundsmith Equity I Acc15%0.95%0.96%£3,000
F&C Investment Trust Ord10%0.57%1.10%£2,000
JPMorgan Emerging Markets Ord10%0.99%1.03%£2,000
Jupiter Strategic Bond I Acc10%0.73%0.94%£2,000
Capital Gearing Ord5%0.68%1.08%£1,000
Standard Life Private Eq Ord5%1.12%5.50%£1,000
Total / Weighted Average100%0.81%1.25%*£20,000

* This is the combined figure for the portfolio, based on the current portfolio weighting. Data correct as at end March 2021.

In addition, ii charges a monthly Service Plan fee and a separate SIPP fee. Our monthly fee comes with trading credits. Trade costs are usually £7.99, or £3.99 for our Super Investor Service Plan and free for regular investments. Please note that UK Stamp Duty Reserve Tax is not tiered and is charged at 0.5% on Investment Trusts. For full details on our charges please see our Rates & Charges.

Timeline

March 2021Annual review
A full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of performance of individual funds, the portfolio had diverged from the original weightings.
November 2020Quarterly review
A selective rebalancing back to the target Fund weightings: from Scottish Mortgage IT to Liontrust Special Situations and Jupiter Strategic Bond Funds
Our Asset Allocation has not changed since inception. However, as a result of performance of individual funds such as Scottish Mortgage IT, the portfolio had diverged from the original weightings.
April 2020Buy
Scottish Mortgage Trust
Global exposure to exciting disruptive growth companies, public and private, selected by highly experienced managers at Baillie Gifford.
April 2020Buy
Standard Life Private Equity Trust
High conviction portfolio of third-party private equity funds selected by Aberdeen Standard Investments.
April 2020Annual Review
Increase in the number of funds for greater diversification and a full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.
January 2019Portfolio launched


Active income

Please note: As a result of recent extreme economic conditions, many companies temporarily stopped paying dividends or significantly reduced the amount they have historically paid out. This means the income that is likely to be achieved by the portfolio in the near future may be less or more than the historic yield quoted in the table.

This portfolio is designed for investors who are looking for income and are interested in investing in actively managed funds, whose managers are able to select the investments they want, rather than passively track an investment index.

Among the portfolio’s fund holdings, the appropriate ‘income’ share class has been selected. This means income generated by the fund is not automatically reinvested, as it is with an ‘accumulation’ share class. For the portfolio’s investment trust holdings, dividends can either be taken as cash or reinvested. The latter option can be achieved via ii’s dividend reinvestment service.

The following table lists the constituents of the active income portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

InvestmentPortfolio WeightingOngoing Charge (OCF)Product CostHistoric YieldAllocation of £20,000
City of London Ord10%0.39%0.96%6.28%£2,000
Man GLG UK Income Professional Inc D10%0.90%1.63%7.12%£2,000
Fidelity Global Dividend W Inc15%0.93%1.11%2.84%£3,000
Bankers Ord10%0.50%0.95%2.21%£2,000
Morgan Stanley Global Brands Equity Income I Inc10%1.00%1.13%4.00%£2,000
Murray International Ord15%`0.69%1.04%5.65%£3,000
Utilico Emerging Markets Ord10%1.10%1.64%4.00%£2,000
Jupiter Strategic Bond I Inc10%0.73%0.94%3.05%£2,000
Standard Life Private Equity5%1.12%5.50%2.83%£1,000
BMO Commercial Property5%1.18%2.43%2.79%£1,000
Total / Weighted Average100%0.82%*1.44%*4.22%*£20,000

*These are the combined figures for the portfolio, based on the current portfolio weighting. Data correct as at end March 2021.

In addition, ii charges a monthly Service Plan fee and a separate SIPP fee. Our monthly fee comes with trading credits. Trade costs are usually £7.99, or £3.99 for our Super Investor Service Plan and free for regular investments. Please note that UK Stamp Duty Reserve Tax is not tiered and is charged at 0.5% on Investment Trusts. For full details on our charges please see our Rates & Charges.

Timeline

March 2021Annual review
A full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of performance of individual funds, the portfolio had diverged from the original weightings.
August 2020Dividend reinstatement
BMO Commercial Property Trust
The trust has reintroduced monthly dividends at 0.25p per share which is 50% of the previous rate.
August 2020Buy
Morgan Stanley Global Brands Equity Income Fund
Global portfolio of high-quality stocks with an enhanced income generated from dividends and premiums from selling index call options.
August 2020Increase
Murray International Trust
Increased allocation from 10% to 15% of the overall portfolio.
August 2020Sell
Artemis Global Income Fund
Replaced with Morgan Stanley Global Brands Equity Income Fund.
May 2020Buy
Jupiter Strategic Bond Fund
‘Go-anywhere’ bond fund that invests in the best opportunities globally, across global credit and sovereign bond markets. Derivatives may be used to manage risk and all foreign currency exposure is hedged back to sterling.
May 2020Sell
Royal London Sterling Extra Yield Bond Fund
Replaced with Jupiter Strategic Bond Fund.
April 2020Dividend suspension
BMO Commercial Property Trust
The trust has temporarily suspended its future monthly dividend payments amid the uncertainty brought about by the coronavirus pandemic. It last paid a 0.5 pence per share dividend on 31 March. The suspension is aimed at preserving the long-term value of the trust and bolster its cash reserves.
April 2020Buy
UK equities portfolio with a bias towards large, multinational companies. A conservative management style employed by the manager at Janus Henderson prioritises sustainable income and long-term capital growth.
April 2020Sell
Threadneedle UK Equity Income Fund
Replaced with Super 60 rated City of London Trust.
April 2020Buy
Fidelity Global Dividend Fund
Sound, high-conviction portfolio of quality, global large capitalisation companies with a focus on total return and downside protection.
April 2020Sell
Henderson International Income Trust
Replaced with Super 60 rated Fidelity Global Dividend Fund.
April 2020Buy
Murray International Trust
Globally diversified portfolio of high-quality defensive stocks. Bonds are also used to enhance the dividend yield as well as to diversify equity exposure. Managed by Aberdeen Standard Investments.
April 2020Annual review
Increase in the number of funds for greater diversification and a full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.
August 2019Sell
Renewables Infrastructure Trust
Premium too high. Replaced with BMO Commercial Property and Standard Life Private Equity Trusts.
August 2019Buy
BMO Commercial Property Trust
Diversified portfolio of prime UK commercial property.
August 2019Buy
Standard Life Private Equity Trust
High conviction portfolio of third-party private equity funds selected by Aberdeen Standard Investments.
January 2019Portfolio launched


Low-cost growth

This portfolio is designed for investors who are building their wealth and are interested in investing in low-cost tracker funds, which aim to replicate the performance of an index and where there is no fund manager discretion. 

The following table lists the constituents of the low-cost growth portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

InvestmentPortfolio WeightingOngoing Charge (OCF)Product CostAllocation of £20,000
Fidelity Index UK P Acc10%0.06%0.13%£2,000
Vanguard FTSE 250 UCITS ETF10%0.10%0.26%£2,000
iShares Core MSCI World ETF USD Acc GBP15%0.20%0.21%£3,000
L&G Global 100 Index I Acc15%0.14%0.11%£3,000
Vanguard Glbl Small-Cap Idx GBP Acc15%0.31%0.36%£3,000
Fidelity Index Emerging Markets P Acc15%0.20%0.54%£3,000
Vanguard Global Bond Index GBPH Acc10%0.15%0.30%£2,000
WisdomTree Enhanced Cmdty ETF USD Acc GBP5%0.35%0.93%£1,000
iShares Glb Prpty Secs Eq Idx (UK) D Acc5%0.17%0.26%£1,000
Total / Weighted Average100%0.18%*0.31%*£20,000

* This is the combined figure for the portfolio, based on the current portfolio weighting. Data correct as at end March 2021.

In addition, ii charges a monthly Service Plan fee and a separate SIPP fee. Our monthly fee comes with trading credits. Trade costs are usually £7.99, or £3.99 for our Super Investor Service Plan and free for regular investments. Please note that UK Stamp Duty Reserve Tax is not tiered and is charged at 0.5% on Investment Trusts. For full details on our charges please see our Rates & Charges.

Timeline

March 2021Annual review
A full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of performance of individual funds, the portfolio had diverged from the original weightings.
April 2020Buy
Vanguard FTSE 250 ETF
Tracks the performance of the FTSE 250 Index of mid-size stocks in the UK.
April 2020Buy
L&G Global 100 Index Fund
Tracks the performance of the S&P Global 100 Index of multinational companies.
April 2020Annual review
Increase in the number of funds for greater diversification and a full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.
January 2019Portfolio launched


Low-cost income

This portfolio is designed for investors who are building their wealth and are interested in investing in low-cost tracker funds, which aim to replicate the performance of an index and where there is no fund manager discretion.

Among the portfolio’s fund holdings, the appropriate ‘income’ share class has been selected. This means income generated by the fund is not automatically reinvested, as it is with an ‘accumulation’ share class. For the portfolio’s ETF holdings, dividends can either be taken as cash or reinvested. The latter option can be achieved via ii’s dividend reinvestment service.

The following table lists the constituents of the low-cost income portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

InvestmentPortfolio WeightingOngoing Charge (OCF)Product CostHistoric YieldAllocation of £20,000
Vanguard FTSE U.K. Eq Inc Idx Inc10%0.14%0.22%6.82%£2,000
SPDR® S&P UK Dividend Aristocrats ETF10%0.30%0.73%3.64%£2,000
SPDR® S&P Global Div Aristocrats ETF15%0.45%0.58%4.39%£3,000
WisdomTree Glbl Eqlty Div Gr ETF USD Acc GBP15%0.38%0.40%2.64%£3,000
Vanguard FTSE All-World High Div Yld ETF15%0.29%0.34%3.38%£3,000
WisdomTree Emerging Mkts Eq Inc ETF GBP15%0.46%0.53%5.29%£3,000
Vanguard Global Bond Index GBPH Inc10%0.15%0.30%1.64%£2,000
SPDR Morningstar Multi-Asset Infrastructure ETF Inc5%0.40%0.40%2.25%£1,000
iShares Glb Prpty Secs Eq Idx (UK) D Inc5%0.17%0.25%3.06%£1,000
Total / Weighted Average100%0.32%*0.44%*3.83%*£20,000

* This is the combined figure for the portfolio, based on the current portfolio weighting. Data correct as at end March 2021.

In addition, ii charges a monthly Service Plan fee and a separate SIPP fee. Our monthly fee comes with trading credits. Trade costs are usually £7.99, or £3.99 for our Super Investor Service Plan and free for regular investments. Please note that UK Stamp Duty Reserve Tax is not tiered and is charged at 0.5% on Investment Trusts. For full details on our charges please see our Rates & Charges.

Timeline

March 2021Annual review
A full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of performance of individual funds, the portfolio had diverged from the original weightings.
April 2020Buy
SPDR® S&P UK Dividend Aristocrats ETF
Tracks the performance of the S&P UK High Yield Dividend Aristocrats Index of the 40 highest dividend-yielding UK companies.
April 2020Buy
WisdomTree Global Quality Dividend Growth ETF
Tracks the performance of the WisdomTree Global Developed Quality Dividend Growth, a fundamentally weighted index that is comprised of companies with the best combined rank of growth and quality factors from global developed markets.
April 2020Buy
WisdomTree Emerging Markets Equity Income ETF
Tracks the WisdomTree Emerging Markets Dividend, fundamentally weighted index and comprises the highest dividend-yielding stocks.
April 2020Sell
iShares EM Dividend ETF
Replaced with WisdomTree Emerging Markets Equity Income ETF.
April 2020Annual review
Increase in the number of funds in the portfolio for greater diversification and a full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.
January 2019Portfolio launched


Ethical growth

A portfolio designed to give investors an idea about how they can build their own diversified ethical portfolio.

You can find out more about how we select ethical investments here.

The following table lists the constituents of the ethical growth portfolio and the current portfolio weighting of each. The Product Cost includes both the ongoing charge and any other costs associated with managing the investment, including transaction costs, incurred by the manager buying and selling underlying investments. It is a more accurate indication of the total annual costs, rather than just using the ongoing charge figure. We also show how a £20,000 investment would be allocated.

Nameii ACE ethical stylePortfolio WeightingOngoing Charge (OCF)Product CostAllocation of £20,000
Royal London Sustainable Leaders C AccConsiders10%0.76%0.96%£2,000
Liontrust UK Ethical 2 Net AccConsiders10%0.83%1.17%£2,000
BMO Responsible Global Equity 2 AccConsiders15%0.79%0.90%£3,000
Baillie Gifford Positive Change B AccEmbraces10%0.53%0.69%£2,000
Impax Environmental Markets OrdEmbraces15%1.04%1.30%£3,000
Montanaro Better World GBPEmbraces10%0.99%1.33%£2,000
Stewart Investors Glbl EM Sust B Acc GBPConsiders10%0.98%1.21%£2,000
Rathbone Ethical Bond I AccConsiders10%0.67%0.72%£2,000
Syncona OrdEmbraces5%1.40%2.10%£1,000
FP Foresight Global Rl InfrastructureEmbraces5%0.85%0.89%£1,000
Total100%0.86%1.09%*£20,000

* This is the combined figure for the portfolio, based on the current portfolio weighting. Data correct as at end March 2021.

Timeline

March 2021Quarterly Review
A full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of performance of individual funds, the portfolio had diverged from the original weightings.
November 2020Buy
Liontrust UK Ethical Fund
Multi-cap portfolio of UK companies, which have strong growth prospects and meet Liontrust’ s environmental and social criteria.
November 2020Sell
Trojan Ethical Income Fund
Replaced with Liontrust UK Ethical Fund.
November 2020Increase
BMO Responsible Global Equity Fund
Increased allocation from 10% to 15% of the overall portfolio.
November 2020Buy
Baillie Gifford Positive Change Fund
Concentrated impact portfolio of 25-50 global high-quality growth companies which can deliver positive change.
November 2020Sell
Fundsmith Sustainable Equity Fund
Replaced with Baillie Gifford Positive Change Fund.
November 2020Buy
Montanaro Better World Fund
Global small cap portfolio with six core themes and a focus on impact.
November 2020Sell
iShares Global Clean Energy ETF
Replaced with Montanaro Better World Fund.
November 2020Buy
FP Foresight Global Real Infrastructure Fund
Invests in companies that own or operate real infrastructure or renewable energy assets anywhere in the world.
November 2020Sell
Impact Healthcare REIT
Replaced with FP Foresight Global Real Infrastructure Fund.
November 2020Annual Review
A full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of performance of individual funds, the portfolio had diverged from the original weightings.
March 2020Quarterly Review
Full rebalancing back to the target Asset Allocation and Fund weightings
Our Asset Allocation has not changed since inception. However, as a result of market volatility in the first quarter and performance of individual funds, the portfolio had diverged from the original weightings.
October 2019Portfolio launched

Past performance of the underlying constituents is not a guarantee of future performance. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest.

Annual performance can be found on the factsheet of each fund, trust or ETF. Simply click on the asset’s name and then the performance tab.

The information we provide in respect of the ii Model Portfolios is an opinion provided by ii or one of its partners on whether to buy a specific investment or portfolio. Please note that none of the opinions we provide are a “personal recommendation”, which means that we have not assessed your investing knowledge and experience, your financial situation or your investment objectives. Therefore you should ensure that any investment decisions you make are suitable for your personal circumstances.

If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial advisor.

Any changes to the ii Model Portfolio constituents and the rationale behind those decisions will be communicated through the Quarterly Investment Outlook.

ii adheres to a strict code of conduct. Members of ii staff may hold shares or units in investments which make up the ii Model Portfolios, which could create a conflict of interest. Any member of staff intending to complete some research about any financial instrument in which they have an interest are required to disclose such interest to ii. We will at all times consider whether such interest impairs the objectivity of the recommendation.

In addition, staff involved in the production of the ii Model Portfolios are subject to a personal account dealing restriction. This prevents them from placing a transaction in these portfolios or the underlying specified constituents of each portfolio for five working days before and after an investment is included or amended and made public within the list. This is to avoid personal interests conflicting with the interests of the recipients of the ii Model Portfolio options.

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