Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
An account already exists for this email address, please log in.
Investing in funds: All aboard the 'Tugboat'
Saltydog’s Richard Webb looks at how their cautious portfolio, the ‘Tugboat’, has performed, and decides which changes to make.
The Saltydog Investor strategy aims to boost fund investors' returns via a simple momentum strategy: buy what's rising, and avoid what's falling. You can read more here. Saltydog's Richard Webb looks at the latest updates to their cautious portfolio, the Tugboat'.
As momentum' investors, we look for the best-performing sectors (using Investment Management Association definitions), pick the top funds in each, and average out their performance to see which area of the market from least risky to most risky is performing most strongly.
Our latest analysis shows that all sectors rose for the second week in a row (for the week to 8/5/13). In our Slow Ahead' group (containing the least-risky sectors), the top sector was Sterling Corporate Bonds'. In the slightly higher-risk Steady As She Goes' group, UK Equity Income' and UK Equity and Bond Income' are leading the way.
Try 6 free issues of MoneyWeek today
Get unparalleled financial insight, analysis and expert opinion you can profit from.
Sign up for MoneyWeek’s free twice-daily newsletter.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
But the top sector, by a long way, is in the most volatile Full Steam Ahead' group. Japanese equities have beaten all others in recent months: the top six funds have each returned more than 20% in the last 12 weeks.
How does this affect our Tugboat' portfolio? We have reflected the resurgence in the Steady As She Goes' sector by hanging on to the Chelverton UK Equity Income Fund (up 24% since we bought it seven months ago). We have now added the Cazenove UK Equity Income Fund, investing £5,000 (10% of the portfolio).
Our top performer, the Legg Mason Japan Equity Fund, is up over 20% in less than two months, and we have raised our holding. We believe in cutting our losses and letting our winners run and we're keen to let this one run.
Join more than 165,000 subscribers and keep yourself informed with the latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
