Portfolio re-balance

jd79

Your thoughts and assistance would be apprectiated. I am looking to rebalance one of our portfolios which has been languishing for quite some time for a number of reasons, and now is the time to get moving. The portfolio is for the longer term (10 years +) with an optimistic and adventurous outlook on investment. The total will be around £100K and as you can see I am only up to about 85% with nothing carved in stone. Do you think I am on the right track?

Saracen Growth Alpha 10%
Fidelity UK A Acc Index 10 %
Neptune European Opps A Acc 10%
Henderson European Smaller Co 5% *
M & G American A Inc 5%
Jupiter Fund of Investment Trusts 5% *
Neptune Managed A Acc 10%
Aberderen Asia Pacific & Japan A Acc 5%
Jupiter China 5%
Invesco Perpetual Latin American Acc 5%
Aberdeen Property Share A Acc 5%
Neptune Greater Russia 5%
Jupiter Global Managed 5% *

Should also mention we hold stock in HSBC and ongoing share options (I am not connected with the industry although my partner is, however not in an investment capacity).

The three items marked with an asterisk we already hold, and we are looking to dump the following:-

Henderson Global Technology A
Henderson North American Equity A
Jupiter UK Growth
Jupiter UK Special Situations
Jupiter European
Jupiter Global Technology

All of the above are currently held in ISA/PEP wrappers.

Thanks in anticipation.

jd79

Hi folks

Posted this one yesterday - any thoughts????????? You can be as critical as you like - feel free.

jd79

I have watched this forum for months and taken onboard advice from the "experts" which has led me to put together the above proposed portfolio. I really am surprised that no one can be bothered to comment. If I have done something wrong please tell me.

EdInvestor

Hi jd79

Sorry missed your thread yesterday.

Have you looked up your funds over on this site


https://www.citywire.co.uk/Funds/Home.aspx

As a basic rule of thumb, if the fund is in the top 10 in its category over 1,3,5,and preferably 10 years, it is probably worth holding on to, or considering for investment.

Although past performance is no guide to the future,as the FSA says, as long as the same manager is in charge, a consistent long term record of srong performance is probably as good an indicator as any.

How do your choices rate?

dunstonh

Are you looking to rebalance (i.e. bring the asset spread back in line with your risk profile) or revamp (i.e. review and alter where necessary to suit your current goals)?

You say rebalance but I think a revamp is what you really are looking at. Without knowing your risk profile, we cant give much indication as to whether your chosen sectors and spread match.

jd79

EdInvestor wrote:

Hi jd79

Sorry missed your thread yesterday.

Have you looked up your funds over on this site


https://www.citywire.co.uk/Funds/Home.aspx

As a basic rule of thumb, if the fund is in the top 10 in its category over 1,3,5,and preferably 10 years, it is probably worth holding on to, or considering for investment.

Although past performance is no guide to the future,as the FSA says, as long as the same manager is in charge, a consistent long term record of srong performance is probably as good an indicator as any.

How do your choices rate?

Hi Ed

Thanks for your reply - I have looked at a number of sites and have checked thro' Citywire and the funds, in the main, fall within your described criteria. Thanks once more for your interest.

jd79

dunstonh wrote:

Are you looking to rebalance (i.e. bring the asset spread back in line with your risk profile) or revamp (i.e. review and alter where necessary to suit your current goals)?

You say rebalance but I think a revamp is what you really are looking at. Without knowing your risk profile, we cant give much indication as to whether your chosen sectors and spread match.

Hi Dunstonh

Thanks for your reply. I am basically looking to move the thing on. The past is what it says and I have left things to drift, no matter, onward and upward! Can't really say too much more than I have already said on risk profile. I will have a crack at anything that is sensible. Once I have completed this one I will be looking to put a HYP in place.

I currently want a new portfolio with a ten year outlook. I am looking for a good spread over most sectors/geographical areas etc.It is my intention to then keep the matter under regular review and rectify my failings of the past, where I have hung on to duffers for far too long.

As I have said in my reply to Ed the chosen funds feature well on Citywire. Hopefully these funds will continue to perform. I was hoping that someone may have pointed out,gaping errors, if any. I welcome constructive criticism.

Thanks again.

EdInvestor

jd79 wrote:

.... we are looking to dump the following:-

Henderson Global Technology A...
....Jupiter Global Technology

The past is what it says and I have left things to drift.

I see what you mean.

Can you give an idea of the total strategy? You say

Once I have completed this one I will be looking to put a HYP in place.

An HYP is roughly equivalent to an equity income fund.How much of the total assets will be in this, compared with the funds?It's a bit difficult to see what your asset allocation is at present.

IMHO high risk strategies, if adopted, shouldn't really be allowed to drift to the extent this one has.So adding in an HYP looks sensible, especially if it's a core holding.

Conrad

I think you need more exposure to foreign real estate concentrated in growth markets such as E Europe, Brazil, India and Japan. It seems your portfolio is perhaps too heavily concentrated in equities.

Also people often increase thier wealth significantly through gearing. For some this means small deposits into lots of properties in order to expose thier relatively small capital outlay to much larger assets. In terms of funds I would look for some which are geared (ie borrowed) as a way of ramping up your exposure. As an example I recently bought shares in various UK based property funds that are 85% geared in order to build German property portfolios which Im confident will be one of the most impressive asset classes in the next 10 years.

Also noticed you are dumping 2 tech funds. I would perhaps re - consider. Technology doesnt suddely stop. Just as Man kind didnt stop with Roman technology the demand is never going to cease. My tech funds havent performed that well but Im thinking long term they will still be a useful part of the portfolio.

You mention dumping a European fund. Europe is a growing regional player and many member nations have some of the fastest growth in the World and Germany looks like its comming out of a long period of low growth (unemployment in thier Eastern cities is for the first time rapidly declining - hence my buying German property directly and via funds).

Sorry if Ive mis - understood anything.

jd79

EdInvestor wrote:

I see what you mean.

Can you give an idea of the total strategy? You say



An HYP is roughly equivalent to an equity income fund.How much of the total assets will be in this, compared with the funds?It's a bit difficult to see what your asset allocation is at present.

IMHO high risk strategies, if adopted, shouldn't really be allowed to drift to the extent this one has.So adding in an HYP looks sensible, especially if it's a core holding.

Hi Ed

My plan is to put the "proposed portfolio" when finalised under the one umbrella thro' the likes H-L. I then intend over the next two years to develop the HYP (thro' share options, cash and current holdings). The two pf's will then be roughly 50/50.

My thoughts at the moment, are that the HYP will give the potential to take dividends if the wheel comes off. I would really like to keep re-investing the dividends but at least I can keep options open.

Thanks again for your interest.

jd79

Conrad wrote:

I think you need more exposure to foreign real estate concentrated in growth markets such as E Europe, Brazil, India and Japan. It seems your portfolio is perhaps too heavily concentrated in equities.

Also people often increase thier wealth significantly through gearing. For some this means small deposits into lots of properties in order to expose thier relatively small capital outlay to much larger assets. In terms of funds I would look for some which are geared (ie borrowed) as a way of ramping up your exposure. As an example I recently bought shares in various UK based property funds that are 85% geared in order to build German property portfolios which Im confident will be one of the most impressive asset classes in the next 10 years.

Also noticed you are dumping 2 tech funds. I would perhaps re - consider. Technology doesnt suddely stop. Just as Man kind didnt stop with Roman technology the demand is never going to cease. My tech funds havent performed that well but Im thinking long term they will still be a useful part of the portfolio.

You mention dumping a European fund. Europe is a growing regional player and many member nations have some of the fastest growth in the World and Germany looks like its comming out of a long period of low growth (unemployment in thier Eastern cities is for the first time rapidly declining - hence my buying German property directly and via funds).

Sorry if Ive mis - understood anything.

Hi Conrad

Thanks for your contribution. You have given me food for thought in relation to the property and gearing aspects. These are matters that I will now give a bit of time to for research. In relation to the tech funds I totally agree with you, however the two that I hold come near to the bottom the pile. It is my intention to re-visit this one and may well move to another fund.

Thanks again.