Should I put £100,000 in a L&G Tracker Fund

dunstonh

business_man wrote: »

One simple peice of advise, dont do any long term invesments in the UK. Look abroad, invest abroad.

Invested over £110k and happy. Long/short/securities/PM everything is available.

And have no consumer protection for doing so. Great advice to give someone with no knowledge of investing. :mad:

Incyder

Spend it. Not too fast.
They won't put it in your coffin with you.
They will take it all off you if you go into care in the future.
£600 a week and your 100k will last 3+ years and your only treat will be seeing the magic balloon lady vist on a wednesday afternoon.

Is that what you want? Is that what you worked for?

smallfry27

I pay a very large management fee on a portfolio which has a very sensible spread across UK, US, international, defensive, and commodity funds. Every month I compare it's value to the changes in the FTSE 100 - in effect I'm comparing what investing a similar amount in a UK FTSE 100 tracker fund would have given me.

Now, to my primative logic and knowledge of these things, the two shouldn't correalate, as such a small percentage of my actual portfolio is held in UK funds. However every month since August 2009 the two values have been almost identical. Can anyone explain this strange phenomenon to me ? Are all the world markets moving in sync, or are the highs in some balancing out the lows in others, with the net effect of eerily matching the FTSE ?

sabretoothtigger

business_man wrote: »

One simple peice of advise, dont do any long term invesments in the UK. Look abroad, invest abroad.

Thats only great if sterling does not get any stronger. Imagine the impossible, an 'emerging uk' investment does better. UK unemployment goes down and we start doing more business.

The pound regains the 25% it lost in the last couple of years, all the foreign investments are going to have to work very hard to keep their value nevermind make a profit.


Also any is a broad stroke. Even if the uk currency doesnt improve, some companies will appreciate this and do better business then they have for years

DavidHayton

smallfry27 wrote: »

I pay a very large management fee on a portfolio which has a very sensible spread across UK, US, international, defensive, and commodity funds. Every month I compare it's value to the changes in the FTSE 100 - in effect I'm comparing what investing a similar amount in a UK FTSE 100 tracker fund would have given me.

Now, to my primative logic and knowledge of these things, the two shouldn't correalate, as such a small percentage of my actual portfolio is held in UK funds. However every month since August 2009 the two values have been almost identical. Can anyone explain this strange phenomenon to me ? Are all the world markets moving in sync, or are the highs in some balancing out the lows in others, with the net effect of eerily matching the FTSE ?

I think the reason might be is that the FTSE-100 isn't invested much in the UK either. About 70% of the earnings of FTSE-100 companies come from overseas: which might be in line with your portfolio. You have commodity funds in your portfolio; 15% of the FTSE is in basic materials and 18% is oil and gas so plenty of commodities there as well.

The problem with the FTSE-100 tracker in my opinion is the extra risk because your holdings will be concentrated in just a few companies. For example a good oil and gas fund will spread your money widely. In the FTSE-100, it doesn't go much further than BP and Shell, so you are more dependent on the fortunes of individual companies.

david

jimjames

business_man wrote: »

One simple peice of advise, dont do any long term invesments in the UK. Look abroad, invest abroad.

Invested over £110k and happy. Long/short/securities/PM everything is available.

Except 70% of earning of FTSE100 companies are derived overseas so the UK market isn't actually a reflection on UK econonmy.

Linton

smallfry27 wrote: »

I pay a very large management fee on a portfolio which has a very sensible spread across UK, US, international, defensive, and commodity funds. Every month I compare it's value to the changes in the FTSE 100 - in effect I'm comparing what investing a similar amount in a UK FTSE 100 tracker fund would have given me.

Now, to my primative logic and knowledge of these things, the two shouldn't correalate, as such a small percentage of my actual portfolio is held in UK funds. However every month since August 2009 the two values have been almost identical. Can anyone explain this strange phenomenon to me ? Are all the world markets moving in sync, or are the highs in some balancing out the lows in others, with the net effect of eerily matching the FTSE ?

They correlate because you have a "sensible" spread, presumably based on larger companies. The major world markets do tend to move in synch because of globalisation. Most large companies are global. World markets are dominated by the larger companies - eg IIRC the FTSE100 is 80% of the FTSE allshare.

If you want something different and potentially more lucrative look at niche sectors and go into as broad a range as you can. Examples include small companies, technology, raw materials, far east etc etc.