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  • FIRST POST
    • talexuser
    • By talexuser 6th Sep 17, 7:58 PM
    • 2,284Posts
    • 1,763Thanks
    talexuser
    Choose a UK fund.
    • #1
    • 6th Sep 17, 7:58 PM
    Choose a UK fund. 6th Sep 17 at 7:58 PM
    Say you wanted to decide the split between UK and non UK investments yourself and were just starting out with say 5 grand not to be touched for at least 10 years, and accept the risks involved.

    You've decided to put 3k into Vanguard FTSE Dev World ex UK Eq Inc Acc and want to put 2k into something UK (and realise the imbalance about the relative GDPs etc).

    You don't like an All Share or 100 tracker because performance has been pretty lacklustre. What would you consider as something mainstream and not in the further realms of risk?

    A young relative is starting on this journey and already decided the above and I'm not sure if any of my active UK funds are really suitable suggestions for them. Maybe a good IT like Finsbury Growth and Income?
Page 1
    • A_T
    • By A_T 6th Sep 17, 8:17 PM
    • 222 Posts
    • 111 Thanks
    A_T
    • #2
    • 6th Sep 17, 8:17 PM
    • #2
    • 6th Sep 17, 8:17 PM
    Mid-Cap/FTSE 250 tracker ?
    • IanSt
    • By IanSt 7th Sep 17, 11:26 AM
    • 121 Posts
    • 77 Thanks
    IanSt
    • #3
    • 7th Sep 17, 11:26 AM
    • #3
    • 7th Sep 17, 11:26 AM
    Any particular reason why you want the 2k to be in the UK?

    If I had my time over again then I'd be looking for my starting investments to be overseas. If brexit goes well then job opportunities etc will be good and the investments from salary will dwarf the 2k. If brexit goes bad then £ is likely to fall, so overseas funds get an added boost.

    I'd be thinking about a global smaller company tracker if it were me.
    • Jeems
    • By Jeems 7th Sep 17, 12:04 PM
    • 180 Posts
    • 106 Thanks
    Jeems
    • #4
    • 7th Sep 17, 12:04 PM
    • #4
    • 7th Sep 17, 12:04 PM
    Any particular reason why you want the 2k to be in the UK?

    If I had my time over again then I'd be looking for my starting investments to be overseas. If brexit goes well then job opportunities etc will be good and the investments from salary will dwarf the 2k. If brexit goes bad then £ is likely to fall, so overseas funds get an added boost.

    I'd be thinking about a global smaller company tracker if it were me.
    Originally posted by IanSt
    People talk about home bias, but is it really needed if confidence in the long term outlook of the home country isn't very high? (to the individual I mean)
    • kidmugsy
    • By kidmugsy 7th Sep 17, 12:06 PM
    • 9,848 Posts
    • 6,641 Thanks
    kidmugsy
    • #5
    • 7th Sep 17, 12:06 PM
    • #5
    • 7th Sep 17, 12:06 PM
    If I had my time over again then I'd be looking for my starting investments to be overseas.
    Originally posted by IanSt
    That's my feeling too. If your present or future house is in the UK, your pensions are going to be in the UK, your future earnings are going to be in the UK, there's a good case for your investable money being elsewhere. Probably the big question is how much to have in North America, how much in the Far East/Pacific.
    • JohnRo
    • By JohnRo 7th Sep 17, 12:57 PM
    • 2,458 Posts
    • 2,213 Thanks
    JohnRo
    • #6
    • 7th Sep 17, 12:57 PM
    • #6
    • 7th Sep 17, 12:57 PM
    If this £5K is to be purely an equity based investment then why not just let the the global marketplace itself decide your allocations, VWRL.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • AnotherJoe
    • By AnotherJoe 7th Sep 17, 3:56 PM
    • 7,595 Posts
    • 8,195 Thanks
    AnotherJoe
    • #7
    • 7th Sep 17, 3:56 PM
    • #7
    • 7th Sep 17, 3:56 PM
    I'd revisit the underlying assumption and go 100% global, possibly ex UK or at most with a "natural" UK % which will be 6 or 7%.
    • talexuser
    • By talexuser 7th Sep 17, 5:38 PM
    • 2,284 Posts
    • 1,763 Thanks
    talexuser
    • #8
    • 7th Sep 17, 5:38 PM
    • #8
    • 7th Sep 17, 5:38 PM
    Hmm, I would say Lifestrategy 100% at their age as a fund and forget, but they think that a split will payoff one way or the other if Brexit goes well or pearshaped for the £.

    I'm loath to recommend any of my active funds because I like to punt on outperformance so don't wish to burden them with a wrong decision, whereas after 25 years of investing if a fund or two dip and need changing it's not the end of the world for me.
    • dividendhero
    • By dividendhero 8th Sep 17, 9:16 PM
    • 103 Posts
    • 84 Thanks
    dividendhero
    • #9
    • 8th Sep 17, 9:16 PM
    • #9
    • 8th Sep 17, 9:16 PM

    If I had my time over again then I'd be looking for my starting investments to be overseas..
    Originally posted by IanSt
    It seems it's only politicians on the right of the Tory party who're talking up the UK post Brexit, can't recall anyone who's actually in the export business backing up these claims.

    Clearly there will be be industries in the UK that'll thrive in future (eg whisky and sectors of the pharma industry), but these will be only niches and not enough to support 60m people in the manner we've become accustomed - therefore I'm looking to move even more of my money overseas and regret not having shifted the lot out before the referendum
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