My first portfolio strategy

mike88

Noktok wrote: »

Thanks mike88 for your considered answer, what you say makes good sense and I will stick with the FTSE all-share. The funds you mention are also very interesting (I came across JPM Natural Resources while searching for commodity funds and was tempted, but thought that an ETF with direct exposure to commodity prices might be cheaper and fit my strategy better). Artemis Strategic Assets is very intriguing but I'm a bit confused, is it an Absolute Return fund or not?

According to the City Wire League Tables Artemis Staregic Assets is an Absolute Return Fund but Artemis and HL regard it to be in the Active Managed sector. It is fairly unique fund unlike any other I can find but seems to be constructed in a manner that limits downside with the manager (who has an excellent past record) given complete flexibility to invest in anything. Whether this strategy works or not is another matter but it has performed reasonably well during its first year. I hold this and Newton Real return for the purpose of balancing risk.

saverjustice

"Natural Resources" - "Strategic Assets" - "Absolute return" Gobbledygook!!

No wonder you are confused...

ETF = complete waste of space in most cases and the FSA has only just woken up this fact, Rip Van Winkle has nothing on the regulatorZZZZZ

relaxtwotribes

Just to be clear on this, you will be selling some of the investments that have done relatively well and buying more of the investments that have done relatively not so well?

Noktok

relaxtwotribes wrote: »

Just to be clear on this, you will be selling some of the investments that have done relatively well and buying more of the investments that have done relatively not so well?

I'll be rebalancing for two purposes, firstly to make sure that my portfolio remains within my planned proportions and doesn't start getting overweight in a particular sector or deforming beyond my risk profile, and secondly to react to the market to put my money where I think the best returns are (e.g. Income for now, but maybe Emerging Markets later).

Maybe that means I'll sell good performers and buy mediocre ones, but my philosophy is that just because a fund has done really well doesn't mean it will continue to do so and I don't want to be caught with my eggs all in one basket if there is another crash.

saverjustice

There will always be another crash one day.

Totton

Given your scenario and suggestions, I would recommend reading Tim Hale's 'Smarter Investing: Simpler Decisions for Better Results' He thinks along your lines and provides sound advice. It's available from Amazon for a little over £14.

I'm not suggesting it is the best book ever written but it contains advice on ETF's etc and provides suggested portfolio mixes.

HTH,
Mickey

Noktok

Thanks. Read it

saverjustice

No point asking questions on here then is there :j

Noktok

Indeed. Would you like a sleeping bag to make your camping in my thread more comfortable? :rotfl:

Newbie2saving

I know you probably have as you seem to have done a lot of research, but have you looked at the xray tool on the Morningstar UK website to drill down your stock / sector overlap? You were asking about FTSE all share to FTSE 250 shifts and this would show both scenarios if you ran the different trackers through. All the best with your portfolios!