GBP

Automated Trading Strategies in GBP

Automated Trading Strategies in GBP

GBP Robo Adviser

Automated Investment Strategies in GBP with The Money Pouch Robo Adviser

All investment portfolios are automatically invested and rebalanced monthly in GBP.

All investment portfolios are also optimised to reduce risk. Please note that results below do not include fees and are backtested.

We have three different types of strategies based on a client's risk profile. Once you answer a short risk questionnaire, your retirement accounts will be automatically invested on your behalf.

 

Robo Adviser Investment Returns in GBP

Please see the roboadviser investment returns below. The CAGR shows the Compound Annual Growth Return. This is how much your portfolio will grow each year over the time period. The time periods below vary depending on the ETFs used as many were launched at different times. However, most portfolios below are tested over the most recent period of around five years.

The final balance shows how much a $10,000 portfolio may be expected to grow over the time period, in this case, approximately five years. CAGR shows average annual returns per year. Please note that these portfolios may have long "down" periods and may be down for months as well as in any calendar year. This is expected.

Conservative strategy - expected annualised return is 6%. This is the least risky strategy and you can sleep at night knowing your accounts will not fluctuate wildly. Holdings include some of the largest multi-nationals, gold and UK government bonds (gilts).

Balanced strategy - expected annualised return is 6%. This is a balanced stock/bond portfolio mix that includes some mid-sized companies and property.

Adventurous strategy - expected annualised return is 6%. When stocks fall, this strategy will likely suffer the most, but when stocks rise, your portfolio will likely outperform. This portfolio includes technology, biotech and international stocks.

Please note that going forward, we expect the adventurous strategy to outperform the balanced and conservative strategies.

Results going forward will be different, but the strategies all take risk/reward in mind and the idea is to preserve capital whilst making gains. Results below do not include transaction fees. There are no set up fees or exit fees. 

 

Robo Investing Returns in GBP

Roboadviser Model Initial Investment Final Balance Test Period CAGR Winning Trades Average Profit Maximum Downtime Sharpe Ratio
Conservative £10,000 £13,491 03/01/2012 - 01/03/2017 6% 63.3% £677 per year, £56 per month 85 weeks from Apr 2013 0.83%
Balanced £10,000 £13,674 03/01/2012 - 01/03/2017 6% 67.6%

£712 per year, £59 per month

158 weeks from Jan 2012 0.80%
Adventurous £10,000 £12,630 02/01/2013 - 01/03/2017  6% 74.8% £632 per year, £53 per month 84 weeks from Apr 2013 0.81%

Conservative Portfolio (The Ivy League Portfolio) in GBP

ISF iShares Core FTSE 100 UCITS ETF GBP (Dist)  

IGLT iShares Core UK Gilts UCITS ETF GBP (Dist)

XBUI  DBX Iboxx UK Gilt Inflation Linked ETF GBP 

PHGP ETFS Physical Gold ETF GBP

IGWD  iShares MSCI World GBP Hedged UCITS ETF (Acc)


Robo Adviser Conservative Portfolio Top Holdings

UK government gilts, physical gold, inflation linked gilts, HSBC, British American Tobacco, Royal Dutch Shell, BP, GlaxoSmithKline, AstroZeneca, Diageo, Vodaphone, Unilever, Apple, Microsoft, Amazon, Exxon Mobil, Johnson & Johnson, JPMorgan Chase & Co, Facebook, Wells Fargo, General Electric, AT&T      

The IVY league portfolio in GBP is loosely based on David Swensen's management of Yale University's endowment fund where he's generated above average returns during the past couple of decades. The IVY League portfolio is not optimised to maximise the risk ratio which hampers returns as risk is alread fairly low.

Robo Adviser Returns & Performance Statistics in GBP 

Roboadviser Model Initial Investment Final Balance Test Period CAGR Winning Trades Average Profit Maximum Downtime Sharpe Ratio
 Conservative   £10,000  £13,491  03/01/2012 -  01/03/2017  6%  63.3% £677 per year, £56 per month  85 weeks from  Apr 2013  0.83%

Please note there will be down months as well as up months, the statistics above show the aveage profit over the time period.


Balanced Portfolio (Low Volatility Portfolio)

ISF iShares Core FTSE 100 UCITS ETF GBP (Dist)  

IGLT iShares Core UK Gilts UCITS ETF GBP (Dist)

INXG iShares £ Index-Linked Gilts UCITS ETF GBP 

IGWD iShares MSCI World GBP Hedged UCITS ETF (Acc) 

MIDD  iShares FTSE 250 UCITS ETF GBP (Dist) 

IEEM iShares MSCI Emerging Markets UCITS ETF GBP (Dist) 

MVUS iShares Edge S&P 500 Minimum Volatility UCITS ETF USD (Acc) (GBP) 

CUKS iShares MSCI UK Small Cap UCITS ETF GBP (Acc) 

IUKP iShares UK Property UCITS ETF GBP (Dist) 


Robo Adviser Balanced Portfolio Top Holdings

UK gilts, index linked gilts, British Land, Land Securities Group, HSBC, Vodaphone, BP, Apple, Amazon, Microsoft, Samsung, Tencent, Alibaba, China Construction, China Mobile, Baidu, Taiwan Semiconductor Manufacturing,  Infoma, Rentokil, Microfocus International, Melrose Industries, Rightmove, United Health Group, ADP, Procter & Gamble, Waste Management, Stryker and Accenture. 

The low volatility portfolio uses a mix of low volatility stocks (stable stocks which don't fluctuate much) in the small cap and large cap markets, paired with a leveraged treasury ETF for safety. This helps target much higher performance and then is optimised for risk for a high sharpe ratio of 0.93.

Robo Adviser Returns & Performance Statistics in GBP 

Roboadviser Model Initial Investment Final Balance Test Period CAGR Winning Trades Average Profit Maximum Downtime Sharpe Ratio
Balanced £10,000 £13,674 03/01/2012 - 01/03/2017 6% 67.6% £712 per year, £59 per month 158 weeks from Jan 2012 0.80%

Please note there will be down months as well as up months, the statistics above show the aveage profit over the time period.


Adventurous Portfolio in GBP

IGLT iShares Core UK Gilts UCITS ETF GBP (Dist)

IGWD iShares MSCI World GBP Hedged UCITS ETF (Acc) 

MIDD  iShares FTSE 250 UCITS ETF GBP (Dist) 

IJPH iShares MSCI Japan GBP Hedged UCITS ETF (Acc) 

HLTG Lyxor MSCI World Health Care UCITS ETF (GBP)

VUSA Vanguard S&P 500 UCITS ETF (GBP) | VUSA

XLKQ Source Technology S&P US Select Sector UCITS ETF (GBP)

SBIO Source NASDAQ Biotech UCITS ETF (USD) | SBIO

CUKS iShares MSCI UK Small Cap UCITS ETF GBP (Acc) 


Robo Adviser Adventurous Portfolio Top Holdings

UK gilts, Berkeshire Hathaway, Amazon, Exxon, Microsoft, Apple, Facebook, GE, AT&T, Toyota, Sony, Softbank, Mitsubishi, Honda, Mizuho, Daimler, BASF, Allianz, Deutsche Telekom, Exelixis Inc, Ionis Pharmaceuticals, IONS, Taro Pharmaceutical Industries, ACADIA Pharmaceuticals, Infoma, Rentokil, Microfocus International, Melrose Industries andRightmove.

The adventurous portfolio is based on an ageing, growing world population as well as the new technology stocks. The portfolio is leveraged to increase returns, whilst optimised to reduce risk. 

The portfolio holds many of the largest blue chip companies in the USA, the largest tech companies such as Amazon, Apple, Facebook and Google, as well as the biggest pharmaceutical companies on the planet.

Robo Adviser Returns & Performance Statistics in GBP

Roboadviser Model Initial Investment Final Balance Test Period CAGR Winning Trades Average Profit Maximum Downtime Sharpe Ratio
Adventurous £10,000 £12,630 02/01/2013 - 01/03/2017  6%  74.8%  £632 per year, £53 per month  84 weeks from Apr 2013  0.81%

Please note there will be down months as well as up months, the statistics above show the aveage profit over the time period.


Are the Strategies Leveraged?

We make use of both leveraged ETFs (max 3x) and a "reg T" portfolio margin account. We only risk 40% of capital at any time in an account which is leveraged at 4:1. In other words, your account will be leveraged at 1.6 times your initial deposit. We feel this is one of the least risky ways to trade your account. If you have a low risk tolerance and worried that your account will fall by more than 20% in any given one year period, we highly recommend investing in our conservative strategy.    


Glossary (Terminology Explained)

The Compound Annual Growth Rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period

The Standard Deviation (Std.Dev.) is a number used to tell how measurements for a group are spread out from the average (mean), or expected value. A low standard deviation means that most of the numbers are very close to the average. A high standard deviation means that the numbers are spread out. Max drawdown is an indicator of the risk of a portfolio chosen based on a certain strategy. It measures the largest single drop from peak to bottom in the value of a portfolio

The Sharpe Ratio is a measure for calculating risk-adjusted return, and this ratiohas become the industry standard for such calculations. It was developed by Nobel laureate William F. Sharpe. Measures above 1 are considered less risky

The Sortino ratio is a useful way for investors, analysts and portfolio managers to evaluate an investment's return for a given level of bad risk. Since this ratio uses the downside deviation as its risk measure, it addresses the problem of using total risk, or standard deviation, as upside volatility is beneficial to investors. Just like the Sharpe ratio, a higher Sortino ratio is better. When looking at two similar investments, a rational investor would prefer the one with the higher Sortino ratio because it means that the investment is earning more return per unit of bad risk that it takes on


Disclaimer/Performance Guide

  • Past performance is not a guarantee of future returns and data and other errors may exist. See Disclaimer and Terms of Use
  • The year range is automatically adjusted based on the selected year range and available return data for the specified assets
  • The annual results for 2016 are based on full calendar months from January to August
  • Mean variance optimization is based on the monthly return statistics of the selected assets, and the portfolio return statistics above use the same methodology
  • See methodology section of the FAQ for more information on mean variance optimization and its limitations
  • Expected annual return is based on annualized monthly returns
  • CAGR = Compound Annual Growth Rate
  • StdDev = Standard Deviation based on annualized standard deviation of monthly arithmetic returns (population standard deviation)
  • Sharpe and Sortino ratios are calculated and annualized from monthly excess returns over risk free rate (1month tbills)
  • Drawdowns are calculated based on monthly returns.
  • The backtested results include monthly rebalancing of portfolio assets to match the specified allocation
  • The results use total return and assume that all dividends and distributions are reinvested. Taxesand transaction fees are not included.