Portfolio re-balance

scouser_in_exile

Post Edited

dunstonh

...Watson Wyatt being my favoured data supplier for asset allocation.

The spread of funds isnt that diversified at present and is missing some key areas. Also, HYP is just one strategy and has its negatives as well as the positives. You too often only see the positives. However, to get an idea of the negatives, just look at LTSB share price for the last 6 years. Also look at Marconi as that would have been in many HYPs before that went wrong.

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

I should have mentioned in my earlier post to you that whilst I am looking to dump a European fund, it is a poorly performing one, which I will be substituting with one from the top of pile. I also hold a smaller co's euro fund.

Many thanks once more.

jd79

scouser_in_exile wrote:

What's the spilt in terms of what kind of wrappers you're using. You did mention some ISA/PEP holdings.

i.e. give a rough figure of how much is in these more tax efficient wrappers, and then I'm assuming you're just looking at UTs and OEICs for the balance?

Some advisers will say that it will be more efficient for you to hold a significant portion of your ISA/PEP portfolio in fixed interest, although I'm not entirely convinced about that. Without wanting to let the tax tail wag the investment dog, asset allocations will differ slightly (if you weight portfolios in terms of tax efficiency) between different tax wrappers depending on who you listen to. The current Watson Wyatt models being a case in point.

As a rough estimate - what would you say your attitude to risk would be on a scale of 1 to 10, 1 being risk adverse?

Hi Sie

Thanks for taking the time. The first portfolio will be made up of existing ISA/pep holdings and hopefully by the time I've sorted the second one I will be in a similar position.

On your scale of risk aversion I would put myself at 9. (For I read we. I am only the boss when the boss is at work).

Thanks again,

Jake'sGran

jd79 wrote:

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.

I have not been reading this section for a while as I seem to run out of time reading some of the others. Like you I am invested in a few funds but would not like to start giving advice and people like Asteroth (looks wrong that) will not usually give advice as he is a Financial Adviser and it would be unethical on a forum. I am rather wary of investing in new funds or new markets like China or India as I don't feel I am sufficiently knowledgeable but I have been pleased with my income funds, especially Invesco Perpetual Income which the tables show as the number one over five years. When I was a complete novice I put some money in Fidelity Special Sits and that did exceptionally well but is being watched now as the fund manager will retire next year and the fund has had to be split because of it's size. I have just sold Credit Suisse Income on the advice of the broker (unpaid). I will never invest in technology again having caught a cold with the Aberdeen one or a tracker as I think they will never be exciting. I rely on the Internet and The Sunday Times for my research and and if I were you I would have a look at Citywire, iii, Standard & Poors etc for performance tables. Right now I am not happy with my M&G funds but will have to find something I can rely on before switching.

jd79

Jake'sGran wrote:

I have not been reading this section for a while as I seem to run out of time reading some of the others. Like you I am invested in a few funds but would not like to start giving advice and people like Asteroth (looks wrong that) will not usually give advice as he is a Financial Adviser and it would be unethical on a forum. I am rather wary of investing in new funds or new markets like China or India as I don't feel I am sufficiently knowledgeable but I have been pleased with my income funds, especially Invesco Perpetual Income which the tables show as the number one over five years. When I was a complete novice I put some money in Fidelity Special Sits and that did exceptionally well but is being watched now as the fund manager will retire next year and the fund has had to be split because of it's size. I have just sold Credit Suisse Income on the advice of the broker (unpaid). I will never invest in technology again having caught a cold with the Aberdeen one or a tracker as I think they will never be exciting. I rely on the Internet and The Sunday Times for my research and and if I were you I would have a look at Citywire, iii, Standard & Poors etc for performance tables. Right now I am not happy with my M&G funds but will have to find something I can rely on before switching.

Hi Jake's Gran

Thanks very much for your reply. You have given me some interesting pointers which is all that I am really after. It is nice that people take the time and give some positive feedback. On the point of the tech I may well dip my toe back in with a better performing fund. I will keep plodding on and try and get as good a spread/cover as I can.

Thanks again - you have been very helpful.

scouser_in_exile

Post Edited

jd79

Hi Sie
Thanks for this - very informative. Couple of Q's 1) What are the more tax efficient wrappers you refer to? 2) I am not familiar with Watson Wyatt; how do I access allocation models with them? Thanks again

scouser_in_exile

Post Edited

jd79

Hi Sie

Thanks again for your assistance, I will have a look at the WW site. The bulk of my holdings are ISA/PEP wrapped. All the best.