Critique my Portfolio
Comments
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Generally high risk can mean either high reward or a high risk of losses. Is now the right time to invest in higher risk Trusts?.
I think the OP has inherited some good Trusts such as Henderson European Focus & Scottish Mortgage and although some trusts are higher risk they can equally give higher rewards as you mentioned. If I had inherited these trusts I would certainly investigate them further before selling to buy more VLS80!
To my mind VLS80 also carries quite a high risk maybe not as much as trusts but surely there is no reason to sell all of them and put all your eggs in one basket?0 -
When I first saw you portfolio I thought it was a bit of a mish mash with no obvious structure or strategy.
However, putting into Morningstar Xray I find it is well diversified across sectors and geographies with a rather higher % small/midcap equity than VLS80's equity. It consistently outperforms VLS80 with a 5 year average return of 17.4% against VLS80's 13% and VLS100's 15.9%.0 -
I tend to agree with MPN's comments above that the OP should at least research and assess the trusts that he has inherited before transferring all his portfolio into VLS80.
Whether it would be a lot more high risk to retain these trusts as opposed to VLS80 I'm not informed enough to know but do the research and then make your decision. There are of course a lot of other possibilities but all these will also require further research.0 -
When I first saw you portfolio I thought it was a bit of a mish mash with no obvious structure or strategy.
However, putting into Morningstar Xray I find it is well diversified across sectors and geographies with a rather higher % small/midcap equity than VLS80's equity. It consistently outperforms VLS80 with a 5 year average return of 17.4% against VLS80's 13% and VLS100's 15.9%.
Its interesting that the Morningstar Xray report confirms the OP's portfolio of IT's outperforms VLS100/80. I would be very tempted to keep the IT's until I fully researched the individual factsheets etc. Surely, it would be a shame to sell them all just because you didn't want to do the research?0 -
I would agree. The OP thought the portfolio he had inherited seemed a bit muddled, but as Linton found out through the Morningstar Xray, it seems to be a well diversified portfolio with a good past performance, which indicates the previous owner of the portfolio knew what they were doing. Accordingly I would be tempted to keep the portfolio rather than put it all in a VLS80.Its interesting that the Morningstar Xray report confirms the OP's portfolio of IT's outperforms VLS100/80. I would be very tempted to keep the IT's until I fully researched the individual factsheets etc. Surely, it would be a shame to sell them all just because you didn't want to do the research?
However I note that the OP said he was after moderately high risk, so not sure whether or not the IT portfolio is all equities and therefore higher risk than the VLS80? If it is he could presumably just de-risk it a bit, rather than selling everything and putting it all into the VLS80?0 -
I think the OP has inherited some good Trusts such as Henderson European Focus & Scottish Mortgage and although some trusts are higher risk they can equally give higher rewards as you mentioned. If I had inherited these trusts I would certainly investigate them further before selling to buy more VLS80!
To my mind VLS80 also carries quite a high risk maybe not as much as trusts but surely there is no reason to sell all of them and put all your eggs in one basket?
I've just been doing some research on Trustnet and Scottish Mortgage IT and the Henderson European Focus IT have both done really well over the past 10 years but SM has been outstanding!0 -
Past performance is no guarantee of future returns etc etc
I totally agree but you have to get some data from somewhere and SMT have been through the downturns of 2008/9 and 2011 and still produced excellent results overall.
Surely, you have to compare funds/IT's in their own sectors over say a 10 year period to ascertain how they have performed especially in a downturn and how they recovered?0 -
I totally agree but you have to get some data from somewhere and SMT have been through the downturns of 2008/9 and 2011 and still produced excellent results overall.
Surely, you have to compare funds/IT's in their own sectors over say a 10 year period to ascertain how they have performed especially in a downturn and how they recovered?
Why ten years, why not twenty five or forty years?
How is the volatility of the fund over the defined period?
Has the manager been there for a long time, has he or she recently moved?
Just things to consider.0 -
Why ten years, why not twenty five or forty years?
How is the volatility of the fund over the defined period?
Has the manager been there for a long time, has he or she recently moved?
Just things to consider.
Yet again I do agree, I was just saying that performance over the past 10 years which included some downturns was pretty good. Do many funds exist over 25 to 40 years? I know some IT's do but in general I think I'd rather rely on data from the past 10-15 years if the funds exist over that period. I really don't disagree with you but I don't see how we can assess data from so long ago and even then portfolio and fact sheets change over time so maybe we can't assess like for like over a longer period?0
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