£ – GB Pound Permanent Portfolio
Below are the results of the British Pound based Growth Portfolio which tracks World Stocks, UK Bonds & Gold in GBP currency-based funds which are traded on the London Stock Exchange. The portfolio is updated monthly here on my website. (Note: for anyone looking for the previous GBP US Asset Permanent Portfolio, I decided to just track the GBP PP instead as the bond component was not tracking the correct long term bonds).
This portfolio is based on the well known Permanent Portfolio concept first introduced by Harry Browne back in the 1980’s, however the main cash component has been removed and invested in Peer to Peer lending instead of short term t-bills because for the last 10 years, they have paid very little return. The portfolio is re-balanced at the end of each year and that is really all the maintenance it needs.
Although I have personally been investing in these asset classes for over 20 years, I began tracking these specific funds in May 2018 at the same time I initiated my GBP Peer to Peer Lending Portfolio as another investment alternative for my GBP capital. My other personal Growth Portfolio is in USD currency which you can see here.
This portfolio uses the following ETF’s: CORE MSCI WORLD ETF (SWDA), Barclays 15 Year + GILT ETF (GLTL), and iShares Gold ETF (SGLN). Each fund is re-balanced to 1/3rd of the total portfolio value at the beginning of each year. Any of these funds could be replaced by other ETF’s or funds which track the same assets if required.
£ – GB Pound Portfolio Monthly Returns Table (click table to enlarge).
I have not yet found a way to accurately backtest GBP fund or asset class data as I have with the US data based portfolios. Based on how similar the portfolio tracks the USD Permanent Portfolio, asset class performance should be similar to the USD based Permanent Portfolio in the long term, with adjustments for currency fluctuations of course. You can see that asset class test here at Portfolio Visulizer which goes back to 1978 and has returned an overall average of around 9.3% per annum for the last 40 yeas.
This page is presented for informational purposes only. I am not a Financial Adviser and therefore not qualified to give financial advice. Please do your own research and make your own investment decisions. Read our disclaimer for further information.