my portfolio - comments

gadgetmind

Ash1982 wrote: »

I just think I may be less risk averse than some (it's a matter of opinion I guess)

Until you have significant sums invested (10x your annual pay?) and have seen the value drop 40% in a year, you don't really know what your attitude to risk is.

grey_gym_sock

1 issue is how you'd react if your investments fall massively in value (e.g. 50%). bigger falls are to be expected with a 100% equities portfolio.

if you'd sell everything, and be scared off equities for years, then 100% equities is a bad idea.

if you'd think: great, my additional investments are now buying in a lower prices, and i plan to make additional investments to a value of several times what i've aleady invested, so lower prices now may help me overall, ... then it's not so bad.

though there is still a question about whether 100% equities is worthwhile in return vs risk.

(when i say 100% equities, i'm not counting emergency cash, as that's different from investments .)

cashbackproblems

For technology im investing in AXA Framlington Global Technology Fund what do people think?

JPM Natural Resources are down 25% recently but still putting in £50pm

Ash1982

ive readded Invesco Perpetual Corporate Bond Accumulation to my monthly saver in light of the comments.

In response to grey gym sock, I've been burnt by equities before (invested 1k in 2007 just before crash as ended up selling for £900- not the worst loss but...). this was lesson learn. First, only invest surplus money that I don't need and secondly, don't sell but keep investing in a downturn.

grey_gym_sock

Ash1982 wrote: »

Invesco Perpetual Corporate Bond Accumulation

the idea is that this fund holds lots of bank debt, which gadgetmind thinks is cheap at the moment?

just in case there's any confusion: i mentioned invesco perpetual, but that was about the UK equity income funds managed by neil woodford.

gadgetmind

grey_gym_sock wrote: »

the idea is that this fund holds lots of bank debt, which gadgetmind thinks is cheap at the moment?

I don't know what that IP fund holds, but I doubt it's that heavy on financials and backs.

OTOH, the IP Global Financial Capital fund that I hold is! I also hold a lot of bank preference shares and am starting to look at Floating Rate Notes, but that's just me really.

My bond holding are mainly via the SLXX and ISXF ETFs (half in each, how dithery is that!) and a couple of funds, but mainly Old Mutual Global Strategic Bond. I like the latter as it's usually in the second quartile over shorter time periods, which means it shows better long term performance than more volatile funds.

Ash1982

gadgetmind wrote: »

I don't know what that IP fund holds, but I doubt it's that heavy on financials and backs.

OTOH, the IP Global Financial Capital fund that I hold is! I also hold a lot of bank preference shares and am starting to look at Floating Rate Notes, but that's just me really.

My bond holding are mainly via the SLXX and ISXF ETFs (half in each, how dithery is that!) and a couple of funds, but mainly Old Mutual Global Strategic :mad:Bond. I like the latter as it's usually in the second quartile over shorter time periods, which means it shows better long term performance than more volatile funds.

Old mutual has a spread bid, doesn't this affect returns?! Been looking at Templeton global bond but it's offshore (no UK protection)

gadgetmind

Ash1982 wrote: »

Old mutual has a spread bid, doesn't this affect returns?

Even though the likes of Hargreaves Lansdown show this spread, their initial fee reduction pretty much eliminates it. That old mutual fund has a standard 3.5% initial charge, which is shown in the spread, but HL wipe this out.

See here -
http://www.hl.co.uk/__data/assets/pdf_file/0016/32542/The_HL_Guide_to_Fund_Prices,_Savings_and_Yields.pdf

If you go here -

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/o/old-mutual-global-strategic-bond-accumulation

You'll see that the spread is just over 3.5%. The "just over" is what it will actually cost you when buying/selling.

Anyway, that's my understanding gleaned from HL's docs and a fairly lengthy email chat with them.

RobStaffs

sorry, misposting

sabretoothtigger

bonds I thought that was bombs for a second, actually yes thats right :laugh:


I'd like to invest in a cheque payable 2022 for 10,000 dollars. Great, do they have a good balance sheet. No They must have alot of growth then, no. Alot of trade then, no they mostly import and their GDP is largely about selling those imports.
Ok so alot of assets as security in storage? no they doubled their borrowings in a few years to spend on keeping GDP level
Why is the expectation to make money on this again :think:

Europe sold tons of gold recently, USA doubled their debt to spend on public wages and UK currency engaged the largest and fastest program of printing in the world.
You really dont want a ten year promise based off the results of those moves, if it was a company you'd want at least 10% a year interest

These are the largest holdings for old mutual. Whats the inflation rate in UK now

US TREASURY BOND 3% BDS 15/05/42 USD1000 11.00 1 - -
TREASURY 4.5% GILT 7/12/42 GBP 10.80

Im sure they might turn a profit this year but generally seems very badly inflated and overvalued idea to chase after. 30 years ago the above paid 15% or so I think, so the tide turns slowly

I'd only want to have money lent to a country with some natural growth to it, natural trade flows and so on. Thats a government that likely will have higher tax revenue to pay their bills but USA while king of the world now seems likely to be in decline at some time maybe for a long time hence more risk especially when it pays less interest.

Investec foreign bonds pays about 6%, might also decline but at least it starts off paying for that possibility. What about TIPS instead