Diverse portfolio suggestions for 35 year old

jon3001

theGrinch wrote: »

interesting split. seems cautiously avdenturous

Thanks?!

It's based on principles of diversifying across uncorrelated asset classes and rebalancing to make the best risk-adjusted gains. I've read books such as the following:
"The Intelligent Asset Allocator", William J. Bernstein
"Asset Allocation, 4th Ed", Roger C Gibson

theGrinch wrote: »

1. which emerging countries are you favourable on?

I just use funds and leave that to the manager. E.g.

• Aberdeen Emerging Markets
• Schroder Global Emerging Markets

theGrinch wrote: »

2. are you keen on any particular economic sectors?

There's no particular tactical weighting in these. It's based on long term returns, combining uncorrelated assets and annual rebalancing as per the books.

These are neutral positions based on those principles but I might get involved in tactical weighting as I get more experience.

If you want my opinion I do think there's a lot of value out there in just about everything although property may have further to slide before I get involed.

theGrinch wrote: »

3. how much use of ETFs and ETCs do you make or buying stocks directly?

There's no direct stocks. Most of the portfolio is built of funds. For some of the commodity side I use ETCs such PHAG and FAIG but I also use funds such as Malborough ETF Commodity Fund and personally-owned bullion.

sabretoothtigger

uncorrelated asset classes sounds good and it looks good but Im inclined to say it looks too perfect.
If you said well its a bit unbalanced but I spotted an opportunity here and there and went for it, I would back that more

• Aberdeen Emerging Markets
• Schroder Global Emerging Markets

Brazil14.71(1)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        India11.12(2)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Mexico8.33(3)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Hong Kong8.04(4)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        South Korea6.95(6)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        China6.86(5)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        South Africa4.97(7)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Taiwan4.88(9)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Thailand4.59(8)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Turkey4.410(11)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Israel4.011(10)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Money Market3.412(13)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Malaysia3.113(12)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Hungary2.914(14)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Russia2.815(15)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Indonesia2.416(18)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Philippines2.217(17)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Chile2.118(16)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Italy2.019(19)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Sri Lanka0.520(20)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Others0.221(21)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]

China22.01(1)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Others17.12(2)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Brazil14.73(3)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        South Korea9.74(4)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Taiwan8.45(6)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        South Africa8.26(5)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Russian Federation7.47(8)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        India6.48(7)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Israel3.99(9)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]                                                                        Money Market2.410(10)                   [IMG]http://www.trustnet.com/images/pixel_bar.gif[/IMG]

jon3001

sabretoothtigger wrote: »

uncorrelated asset classes sounds good and it looks good but Im inclined to say it looks too perfect.
If you said well its a bit unbalanced but I spotted an opportunity here and there and went for it, I would back that more

6% emerging doesn't sound much but at least it is no less then usa, people tend to favour the 'fatty' economies and/or companies a bit too much imo when people who already have everything have less incentive to succeed

I'll go look up where these funds are at and edit

You think it's unbalanced?

It sounds likes you've got a short term investing style compared to mine.(spotting opportunies, seeing where funds are at).



How are you going about evaluating a fund? Performance history compared to its peers is one part of the equation. But I'm also looking for adequate diversification in terms of:

• number of stocks
• geographic sectors
• industries

More concentrated positions naturally have more risk and may yield more gain but that's going to require more homework.

Is it the fund itself or the asset class that you're interested in evaulating? I.e. are you looking for hot funds or hot sectors?

Emerging markets tend to have high correlations with commodities (which I have in spades).

sabretoothtigger

Emerging markets tend to have high correlations with commodities (which I have in spades).

Good point. I think it looks a fine plan but I would not want to be bound to anything too specific