H_L Master Portfolios

RobStaffs

I see they are have five types of portfolios based on your own attitude to risk..As a regular investor in funds I find H_L very good . I still tend to be hesitant to go it alone and this from H_L something I might use.. Am I being seduced by slik marketing? I appreciate there are charges but this must be weighed up against my own lack of confidence and avaiable time. My funds have bounced back quite well in the last 6 months and most of these are with H_L..

would appreciate anyones views on these ready made investment portfolios.

innovate

I'd probably more inclined to take the advice of an IFA or look at unbiased sources. With HL, I always have the suspicion that they push those products from which they make the most money.

dunstonh

HL MM funds are cash cows for HL.

ffacoffipawb

dunstonh wrote: »

HL MM funds are cash cows for HL.

I have 80% of my HL SIPP in their Income and Growth fund, up 4% in a few months. Not great but a bit of diversity from my main SIPP which is a 21 share HYP with SIPPDEAL and is 10x the size of the HL SIPP.

Maybe I should switch that holding into Vanguard 100% equity?

I hold the following in this SIPP

AXA Framlington UK Select Opportunities Accumulation Units
BlackRock Emerging Markets Accumulation Units
BlackRock European Dynamic Fund Accumulation Units
First State Asia Pacific Leaders Class A Accumulation Units
First State Global Listed Infrastructure Accumulation
HL Multi-Manager Income & Growth Trust Accumulation Units
Invesco Perpetual High Income Accumulation Units
Invesco Perpetual Japan Accumulation Shares
JO Hambro UK Equity Income Accumulation Units
JPM Emerging Markets Income Class A GBP Accumulation
Neptune Greater China Income Class A Retail Accumulation
Troy Trojan Fund Class I Accumulation

There's £50 net per month going into all the other funds (nothing in the HL MM as that was a lump sum investment consolidated from accumulated contributions).

Forever

ffacoffipawb wrote: »

I have 80% of my HL SIPP in their Income and Growth fund, up 4% in a few months. Not great but a bit of diversity from my main SIPP which is a 21 share HYP with SIPPDEAL and is 10x the size of the HL SIPP.

Maybe I should switch that holding into Vanguard 100% equity?

I hold the following in this SIPP

AXA Framlington UK Select Opportunities Accumulation Units
BlackRock Emerging Markets Accumulation Units
BlackRock European Dynamic Fund Accumulation Units
First State Asia Pacific Leaders Class A Accumulation Units
First State Global Listed Infrastructure Accumulation
HL Multi-Manager Income & Growth Trust Accumulation Units
Invesco Perpetual High Income Accumulation Units
Invesco Perpetual Japan Accumulation Shares
JO Hambro UK Equity Income Accumulation Units
JPM Emerging Markets Income Class A GBP Accumulation
Neptune Greater China Income Class A Retail Accumulation
Troy Trojan Fund Class I Accumulation

There's £50 net per month going into all the other funds (nothing in the HL MM as that was a lump sum investment consolidated from accumulated contributions).

Apologies for going off topic but I am curious; when did you roughly start these funds which you hold in your sipp and are you making money overall?

dunstonh

I have 80% of my HL SIPP in their Income and Growth fund

Why?
It has never been a good performer. It is expensive at 1.73% TER with at least 0.7% of that going to HL. You have the obvious equity income fund in your portfolio (inv perp).

ffacoffipawb

Forever wrote: »

Apologies for going off topic but I am curious; when did you roughly start these funds which you hold in your sipp and are you making money overall?

Hello. Last year and about 5% up overall. Worst performer is the Japan fund which is down 7%. Best performer is the HL MM fund!

ffacoffipawb

dunstonh wrote: »

Why?
It has never been a good performer. It is expensive at 1.73% TER with at least 0.7% of that going to HL. You have the obvious equity income fund in your portfolio (inv perp).

Hi Dunstonh.

Why? Couldn't think of anything different to my HYP in the SIPPDEAL SIPP.

The Inv Perp is too similar to my HYP I think. Do you not agree?

I do agree that 1.73% TER is bordering usury!

Forever

ffacoffipawb wrote: »

Hello. Last year and about 5% up overall. Worst performer is the Japan fund which is down 7%. Best performer is the HL MM fund!

One year isn't enough time to allow them all to fully perform but starting with a 5% increase overall isn't bad at all!

I also hope your Japan fund picks up over the next couple of years.

As for the HL uk based management fund, if you go to the trust net site and get yourself login credentials, under the tools header link, you can compare different funds over various time spans. Therefore I am sure you can find yourself an equivalent fund which may well be cheaper and performs overall the same or better as this fund.

Using this tool, I have noticed when comparing funds that UK based funds weren't doing well about 4-5 years ago whereas recently, some of these funds have really increased too.

HTH

Daniel_Elkington

Well my stock portfolio is up 30% over the past year (thankyou BP/Tsunami/Standard Chartered) and my medium risk investment ISA did 10%.

The vast majority of Multi Managers don't work. They promise lower risk, greater diversification and better returns.

They end up giving average returns and are more expensive than single managers.

The problem is the reduction in yield due to over-diversification in your average MM tends to place them in the middle of the performance charts with more charges, which reduces your yield (due to the fact that they should have at least 19 holdings due to the diversification rules, well I think it's 19).

Build your own portfolio of 5 really good funds. You don't want any more than 5, if you do you are over-diversifying (remember your funds are diversified themselves).

As warren buffett said; diversification is for those that don't know what they are doing, so if you are going to spread your assets that thin, pick 5 fund managers who you believe can do a good job where they are. Or just pick one!

Why not stick with Seb at Troy, he's fairly good and that's a mixed asset fund?

Forever

Daniel_Elkington wrote: »

Well my stock portfolio is up 30% over the past year (thankyou BP/Tsunami/Standard Chartered) and my medium risk investment ISA did 10%.

The vast majority of Multi Managers don't work. They promise lower risk, greater diversification and better returns.

They end up giving average returns and are more expensive than single managers.

The problem is the reduction in yield due to over-diversification in your average MM tends to place them in the middle of the performance charts with more charges, which reduces your yield (due to the fact that they should have at least 19 holdings due to the diversification rules, well I think it's 19).

Build your own portfolio of 5 really good funds. You don't want any more than 5, if you do you are over-diversifying (remember your funds are diversified themselves).

As warren buffett said; diversification is for those that don't know what they are doing, so if you are going to spread your assets that thin, pick 5 fund managers who you believe can do a good job where they are. Or just pick one!

Why not stick with Seb at Troy, he's fairly good and that's a mixed asset fund?

On this theme, I have noticed that using the x-ray portfolio on the Trust Net site that if you have too many funds overall, the general overall result is less profit in the long run too.

And I have also noticed that none of the managed and especially the absolute return funds ever do well.

I think it's case of having enough diversity in your portfolio overall and in your funds themselves to minimise the risk but not so much diversity that you minimise the returns. There is definitely a balance required in both.