Funds/portfolio advice

Hello Folks,

I was hoping some of the knowledgeable investors here could give me a little feedback or critique of my current funds portfolio. I am coming up to a milestone where i am going to attempt to balance things out a little more. It looks as follows:

Invesco Perpetual High Income 12.7%
JPM Natural Resources 11.0%
First State Global Emerging Markets Leaders 9.6%
Invesco Perpetual Monthly Income Plus 9.4%
First State Asia Pacific Leaders 9.1%
Schroder European Alpha Plus 8.1%
Marlborough Special Situations 8.0%
Neptune Russia and Greater Russia 6.0%
M&G Recovery 5.9%
Aberdeen Emerging Markets 5.9%
Henderson UK Property 5.8%
First State Indian Subcontinent 2.9%
Marlborough UK Micro Cap Growth 2.9%
Neptune Latin America 2.8%

Now some important notes!

I have grown the portfolio a an ad-hock way, mainly with my interest in higher risk areas, and also with an view to emerging markets and UK equity/assets. Yes, i am very tolerant to high risk, but i would like to balance things out as i see as a sensible idea at this point in the portfolio's life. My investment time-frame is around 15 years or more.

I am currently primarily focusing on growing the Marlborough UK Micro Cap, Neptune Latin America and First State Indian Subcontinent, secondly with M&G Recovery and First State Asia Pacific Leaders, this suits my current aims (stated above), but i am reaching them end of this "phase". I do top up other funds with small amounts.

This is not an eggs all in one basket scenario, i make sure i hold the portfolio value again in cash, and i am becoming interested in share investing (in UK equities only) as a smaller part of the complete portfolio.

I was thinking of adding an single North America fund, maybe a european special situations. Possibly a sovereign bonds fund, but i feel these are a little over valued right now, so maybe emerging markets bonds or high yield?

What do you think? Feedback, ideas and pointing out anything bad in my strategy very welcome!

Many thanks
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Replies

  • edinburgheredinburgher Forumite
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    I think you should go speak to an IFA - this is a complex query that I wouldn't trust strangers to answer fully!
  • I think you should go speak to an IFA - this is a complex query that I wouldn't trust strangers to answer fully!

    Thanks for the quick reply, but I dont trust IFA's that much, since fees are involved in the equation, where as this is an open and free forum.

    I do most research myself. I am open to new ideas from other people, but i dont feel i must follow their advice.
  • blinkoblinko Forumite
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    you've got a nice mix there and some good and varied exposure to different markets and aset classes

    personally i would probbably leave it

    if you do go into shares i would recommend higher yielding large caps or defensive stocks to ride ou the rocky moments bt i still think long term you portfolio looks fine
  • LintonLinton Forumite
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    Overall I like your strategy. I would as it's the same as mine. Some detailed but random comments:

    1) For exposure to US but keeping to your high risk growth approach: a tech fund should help. These tend to be invested mainly in the US and provide a bit more diversification.

    2) Without a fair bit of thought I find it difficult to get an overall picture of your portfolio. Possibly you have too many overlapping funds. In particular my preference is to go for general Emerging Market funds and leave it to the fund manager to allocate to the differerent areas. (although Asia-Pac is a special case)

    I feel getting the necessary understanding of each separate geography may prove rather difficult.

    The more funds you have the more complex and expensive it could be to rebalance.

    3) Would agree with emerging market bond funds. More diversification as they provide a good fixed-interest return and benefit from general improvements in those geographies.

    4) I have a higher % in UK Small Companies - again risky but have done very well over the years.
  • blinkoblinko Forumite
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    give your portfolio an x ray in terms of country as i think some of the funds will overlap and you may find yourself exposed to one country or sector quite heavily

    who is your broker i assume HL
  • blinko wrote: »
    you've got a nice mix there and some good and varied exposure to different markets and aset classes

    personally i would probbably leave it

    if you do go into shares i would recommend higher yielding large caps or defensive stocks to ride ou the rocky moments bt i still think long term you portfolio looks fine

    Thanks, yes, defensive and larger cap companies are a safer start, i was looking at the Value style of investing, so this would suit.
  • blinko wrote: »
    give your portfolio an x ray in terms of country as i think some of the funds will overlap and you may find yourself exposed to one country or sector quite heavily

    who is your broker i assume HL

    Yes, HL, and i do use there tools, plus trustnet and morningstar, i dont find myself over invested anywhere that would trouble me overly. If anything, i would like more in emerging markets and asia pacific but have to temper myself in the name of balance.

    Interestingly, when using these tools, i do find i have nearly 10% in North America already, but this is mainly due to the Natural Resources fund i have.
  • Linton wrote: »
    Overall I like your strategy. I would as it's the same as mine. Some detailed but random comments:

    1) For exposure to US but keeping to your high risk growth approach: a tech fund should help. These tend to be invested mainly in the US and provide a bit more diversification.

    2) Without a fair bit of thought I find it difficult to get an overall picture of your portfolio. Possibly you have too many overlapping funds. In particular my preference is to go for general Emerging Market funds and leave it to the fund manager to allocate to the differerent areas. (although Asia-Pac is a special case)

    I feel getting the necessary understanding of each separate geography may prove rather difficult.

    The more funds you have the more complex and expensive it could be to rebalance.

    3) Would agree with emerging market bond funds. More diversification as they provide a good fixed-interest return and benefit from general improvements in those geographies.

    4) I have a higher % in UK Small Companies - again risky but have done very well over the years.

    A technology fund is a good idea for US coverage, i will add this to the list of items to look at, thanks! I have also considered US Smaller Companies.

    I am increasing my investment in UK smaller companies via the UK Marlborough Micro Cap Growth fund, along with the Marlborough Special Situations, this gives me 10.9% in UK Smaller companies, but i am working towards 15%. It has been good to me to, and i feel i may have some more growth to come.
  • masonicmasonic Forumite
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    I spent quite a long period of time looking for a US fund that I liked the look of, but eventually I gave up. I got my extra US exposure through global funds that were biased toward the US (e.g. Neptune Global Equity and Jupiter Global Managed). I didn't need or want much, so I was able to do that without throwing everything else off. The other benefit of taking that approach was that by not being tied down to a particular geography, there is at least theoretically somewhere for the manager to flee when things don't look good in the US. With the Neptune fund, there is also the benefit of getting a bit of Russia on the side without having to cope with the full-on swings of that market. For the same reasons I've also tended to stick to the generic emerging market funds (I hold both of those you've mentioned), but in general I have a quite similar portfolio to yours - right down to several of the individual fund choices.
  • DiggerUKDiggerUK Forumite
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    chedburgh wrote: »
    ........JPM Natural Resources 11.0%
    M&G Recovery 5.9%.......
    My investment time-frame is around 15 years or more.....

    You seem very light in gold exposure, JPM gives you some, but no great amount.
    M&G Recovery served Digger Mansions well in the days that equities did what they said on the tin. Not any more, time to move on.

    Get some gold exposure, it's the only game on the horizon. And I include physical in that recommendation, especially at a 15 year time frame.

    Best of fortune.
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