Reasonable Portfolio?

dunstonh

IFAs should build portfolios to suit the attitude to risk of the individual. A typical risk scale would range from 1 to 10. The higher up the scale, the greater exposure to the higher risk areas.

Sometimes on here and at TMF, you do seem to get posts which forget that everyone is different when it comes to risk and an assumption that everyone should do the same. That is not the case.

penrhyn

How many managed funds beat Tracker funds over say 5 years or so?

dunstonh

I posted that the other day on another thread. It was something like FTSE trackers coming in around 300 out of 380 funds available 5 years ago in the same sector.

The problem you have is that trackers do not have much downside protection whereas managed funds do. The last 5 years includes the stockmarket crash. So, when things are going up consistently, the trackers do well. When things go down, the trackers do worse. What is going to happen in the future and which is best going forward? I don't know, so I wouldnt put all my money in a tracker. I prefer to hedge my bets. I have two tracker funds out of the 23 funds I am currently in.

Deemy

That 300 out iof 380, is that before they sucked in all these foriegn companies

Its no longer an index that reflects UK Business More an international growth stock tracker.

So I guess its likely to outperform the UK in the future and likely UK specific funds

cheerfulcat

dunstonh wrote:

I posted that the other day on another thread. It was something like FTSE trackers coming in around 300 out of 380 funds available 5 years ago in the same sector.

I must have missed that - can you point to the thread?

EdInvestor

penrhyn wrote:

How many managed funds beat Tracker funds over say 5 years or so?

Not quite the answer to your question but here are the average performances of the various fund sectors over the past 5 years, according to https://www.trustnet.com

Smaller companies +40.1%
Equity income +36.8%
Funds of funds +26.2%
Balanced managed +25.6%
Equity growth +22%
Index trackers +11%

simonhgreen

Hi all

Thanks all for your interesting and thought provoking contributions.

My final list, for which I would be grateful of any comments before I take the plunge, is;

Fidelity Special Situations
Invesco Perpetual Income
Artemis Global Growth
Aberdeen Emerging Markets
Artemis European Growth

I am looking to invest for the long term (c15 yrs).

Look forward to hearing from you!!

carnet

If its for circa 15 years, serious thought should be given, IMHO, to include some Far East/Japan exposure (there are funds which combine the two).

Peter Saake's fund does, of course, have some exposure to these markets but currently its relatively low ie Japan accounted for just 7.2% as at 30.12.05.

Personally, I would only invest in one on your list (and have done so).

IMHO there are other funds with better prospects in each of your chosen sectors.

simonhgreen

Hmm

I'm getting to the point where I'm in danger of changing my mind too often.

Apart from the Fid SS the other funds are all contained as part of HL's Wealth 150 index, which I have been referring to.

Is there any hidden agenda with the Wealth 150, or can I take it that is a reasonable (that word again) referral list?

I did look at Fid European but have also read good things about the Artemis approach & philosophy so I thought I'd give them a punt.

I know some contributors think I could be heavier in some specific markets, which I accept, but the question I'm really asking is that do you think overall it's a reasonable portfolio given the funds & managers, and likely to be more rewarding than trackers?

Cheers

carnet

EdInvestor wrote:

assume you looked at the Fidelity European fund which was recently handed over by Bolton

AB actually gave up managing this fund over 3 years ago - although Tim McCarron has proved an extremely worthy successor (despite the size of the thing ).

Hugh Young's Far East inc. Japan fund has gone off the boil a little in recent times - he's now got more on his plate with IT's and ex DWS funds .

There is a relatively undiscovered (for now) gem of a fund in this sector I do like (which I've recently switched into myself) - but unfortunately can't offer specific investment recommendations on these forums.