ISA Fund Spread - opinions!

peterg1965

I am 42 and investing in S&S ISAs for the long term (at least 13 years) as part of my overall financial strategy for retirement. I already have a number of pensions (occupational/PPP/PR fund and State pension via NI) My attitude to risk is, at this stage at least, a medium/high approach, which, hopefully, is reflected in my fund spread. I have 8 funds, some have a lump sum invested already and others I will drip feed monthly. Funds as follows:

Neptune Russia & Greater Russia - £50/month (£150 already invested)
(Specialist)

Gartmore China Opps - £1000 lump sum invested last Nov.
(Asia Pacific excl Japan)

Jupiter Emerging Euro Opps - £1000 lump sum invested last Nov
(Specialist)

M&G Global Basics - £50 Month (£150 already invested)
(Global Growth)

Scottish Widows Latin America £1000 Lump sum last Nov
(Specialist)

JPM Nat Resources - £70 / month from Sep 08
(Specialist)

L&G All Stocks IL Gilt Index £90 month from Sep
(UK Gilt)

Old Mutual UK Select Mid Cap (acc) £50 Month from Sep
(UK Equity)

I will continue to invest about £3700 a year into the ISAs, maybe increase slowly over the years when I can afford it, with the aim of achieving growth to achieve about £60K - £70K after 13 years. The investments are primarily made from HRT relief on my PPP contributions. Whilst I accept the spread may be a little 'out of balance' at the moment, if i keep the same spread then the largest fund will eventually become UK GILT. Some of the funds have taken a bit of a 'hit' of late, I am relaxed about this, but was nearly tempted to stop payment into the Neptune Russia fund, in the end I didn't. This portfolio is also 'specialist' fund heavy - what do people think?

a7man

I would say this is not realy med/high risk more like high risk, looking for aggressive growth. You can expect to have big swings in the Latin America and Neptune Russia fund. I would say it might be worth using pount cost averaging into these funds rather than lump sum as they are speculative investments. Maybe put the lump sums into the med risk funds - gilts etc.

Have a look at the First State Asia Pacific fund too, it is less volatile than russia & latin america and has peformed v well in recent years. It is also in line with your attitude to risk.

dunstonh

My attitude to risk is, at this stage at least, a medium/high approach,

That fund split is very high.

but was nearly tempted to stop payment into the Neptune Russia fund

The conflict with Georgia and the way it is interfering with Western companies (i.e. BP) have led to fears that western companies may choose to not invest in Russia in the short term. However, the drop has led to many seeing value for the long term. So monthly is a good option for this fund.

peterg1965

Looks like I may have been a little too adventurous in my fund choice. Having already taken a short term hit on Russia and China funds I am not going to withdraw funds as that would make me a 'mug punter'!

In a couple of years I hope the portfolio will look a little more in balance with a 20% UK GILT; 50% SPECIALIST; 10% UK EQUITY; 10% GLOBAL GROWTH; 10% ASIA PACIFIC fund spread. At that stage I may divert more funds into UK EQUITIES if the markets are looking a little more bouyant.