£ – 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 Permanent Portfolio, I decided to extend the term of the portfolio as I dug up some backtest data so we can see how it performed in the past. Also some of the data I had been getting was corrupt).
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.
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
(Click Image for Interactive Charts)
This portfolio goes back to May 2012. I have not yet found a way to accurately backtest GBP fund or asset class data further back than that 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.