The ‘Collective’ portfolio invests into eight carefully chosen investment funds, selected for their track record, their diversity and their quality and liquidity. Each of the Pound a Day portfolios pays a dividend which can either be reinvested back into the portfolio or paid away each calendar quarter.
The ‘Selective’ portfolio invests into a dozen high quality UK equities, also chosen for their diversity as well as their potential for capital appreciation. The overriding consideration, however is that each company must have an unbroken track record of dividend increases for at least 15 years. The universe for such securities is, therefore quite small but the investment discipline which we place on this portfolio provides reassurance over the longevity of the individual underlying companies and their ability to withstand external shocks, such as the 2008 banking crisis.
The ‘Selective Growth’ portfolio has a similar method of stock selection to the Selective portfolio in that we look for companies with a strong dividend track record. The difference however, is that each company requires only 7 or more years of unbroken dividend growth, and must belong to the FTSE250 at time of selection. The objective is to identify stocks which have a proven record and are financially strong but are yet to grow to the level of which they could progress into the FTSE 100.
The ‘American Selective’ portfolio invests into sixteen US equities also with at least a 15 year period of unbroken dividend growth.