JPMorgan Natural Resources -48% down but still hanging on

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  • Mistermeaner
    Mistermeaner Posts: 2,958 Forumite
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    Pensionsaver wrote: »
    Hi folks,


    Currently picking funds for my Friends Life SIPP (my employer's provider of choice).


    I am 29, so willing to take a fair bit of risk early on. My pot is currently small.


    The JPM Natural Resources fund has performed dreadfully, but is surely ripe for putting some of my money into, as natural resources are bound to increase at some point during the next 35 years of my working life?


    My thoughts at the moment on fund selection are:


    JPM Natural Resources (10%)
    Blackrock emerging markets (25%)
    Blackrock pacific rim (10%)
    Property fund (25%) - not decided which one yet
    Blackrock consensus (15%)
    Blackrock over 15 year corporate bond index (Aq C)
    (15%)


    I have no investing experience, but have read a little.


    Any thoughts on the above strategy appreciated, as my choices are by no means set in stone. Note that I plan to move to less risky investments as time goes on.

    Start a new thread for best responses

    Personally I'd ditch the bond. No point if your time frame is 35 years

    Profile is also high risk with lots of emerging markets and Asia.

    Consensus is a balanced fund giving a consensus weighting to the various global markets. You have decided against the consensus and gone with your own weighting. What do you know that everyone else doesn't?
    Left is never right but I always am.
  • ColdIron
    ColdIron Posts: 9,052 Forumite
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    No US, UK or European equity to speak of? Looks wildly unbalanced

    Have a look at the makeup of the Consensus fund to see what a balanced fund looks like
  • george4064
    george4064 Posts: 2,811 Forumite
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    edited 25 December 2015 at 11:26AM
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    ColdIron wrote: »
    No US, UK or European equity to speak of? Looks wildly unbalanced

    Have a look at the makeup of the Consensus fund to see what a balanced fund looks like

    I agree with this, I would suggest considering specific UK, US and European funds rather than just the BlackRock Consensus fund covering all of them.
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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  • redux
    redux Posts: 22,976 Forumite
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    edited 25 December 2015 at 12:53PM
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    Serendipity.

    I was looking at a different resources fund a few days ago, and for some reason my eye was drawn to one holding there.

    I read a few more things about the company, and thought it might be worth investing in. Trouble is, I don't have any single company holdings myself, only investment trusts, but keep an eye on it anyway.

    Up 15% in a week and a half since then.

    I wouldn't dare say this means everything is about to start looking up at once, but at least it's not all doom and gloom.
  • racing_blue
    racing_blue Posts: 961 Forumite
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    pensionsaver I like the cut of your jib.

    I considered this fund, but in the end decided to use ETFs to gain exposure to potential upside of commodities instead. As already have enough stock exposure through index funds and other holdings.

    Are you working to a target asset allocation stocks/ property/ commodities/ bonds? If so how does this fund fit in?
  • Pensionsaver_2
    Pensionsaver_2 Posts: 7 Forumite
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    All,

    Thanks for your prompt thoughts and comments. Much appreciated.

    Mistermeaner, thanks for pointing to the fact that the consensus fund is essentially a portfolio within a fund. I definitely don't know anything that others don't! Think I was simply trying to add a bit more risk than a typical 'balanced' portfolio, given that I'll hopefully have time to correct any bad losses over time. Perhaps I went a bit too risky? Will ditch the bonds as you suggest.

    ColdIron and george4064, will bring in more US, UK, and Europe as you suggest. Was planning to focus the whole property element in UK, given that I know this area best, and my view is that UK property will continue to perform well long term.

    Redux and racing blue, still interested in this fund and think it will make up a small part of my portfolio. Part of my frustration is that I seem to be limited to picking from preselected funds. I'd actually prefer to stay away from the mining/precious metals side of natural resources and focus solely on oil, given the current climate, but as far as I can tell this is the closest I can get. Need to contact the provider of the sipp service and see if I can go and buy shares directly in specific companies, rather than compiling my portfolio entirely of funds. Still to figure this out. Early days.
  • BobQ
    BobQ Posts: 11,181 Forumite
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    Many SIPP (eg Fidelity, Best invest) providers will offer a suggested portfolio for certain types of customer (age, attitude to risk etc). Not as good an IFA, but should give you an idea of what balance you should be looking to achieve in terms of countries, investment sectors, asset types, risk levels. Only for guidance of course.
    Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    BobQ wrote: »
    Many SIPP (eg Fidelity, Best invest) providers will offer a suggested portfolio for certain types of customer (age, attitude to risk etc). Not as good an IFA

    IFAs tend to outsource all of this so you get a portfolio that matches attitude to risk (based on whatever understanding of "risk" you might have!) and your investment timescale. Give these other providers the same high-quality and deeply meaningful information (ha!) and you'll get a broadly similar portfolio.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Pensionsaver_2
    Pensionsaver_2 Posts: 7 Forumite
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    Just checked my online pension dashboard to see how things were looking since my initial query back in Nov/Dec last year. To my pleasant surprise the value of all of my funds has increased, with JPM Natural Resources performing best! Short term, I know, but had a good chuckle nonetheless.


    My choice of fund selection ended up being:


    BlackRock European Equity Index
    BlackRock Institutional Sterling Liquidity
    BlackRock UK Equity Index (Aquila C)
    BlackRock UK Smaller Companies
    BlackRock US Equity Index (Aquila C)
    JPM Natural Resources
    M&G Feeder of Property Portfolio
  • jamesd
    jamesd Posts: 26,103 Forumite
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    Back after the initial question was posed on 21-12-2013 after the poster had seen almost a 50% drop from the high I observed:

    "20-12-2013: 566.40
    21-11-2008: 297.10
    4-1-2011: 1194.00

    The 2008 low was 52% of 20-12-2013 price and 24.9% of the 4-1-2011 price."

    That compared then with high and low in recentish history. The price today is 364.9 up from a bit under 300. So the fund has now proceeded to revisit its 2008 low value. Way better as a buying time than it was but it's still high compared to its older past and a further halving seems entirely possible.
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