Please comment on my funds

Any

Hi guys,

I started to invest small monthly amounts into fund&share ISA (H&L). These are the funds I picked so far. There will be only 1 or 2 addittions, and perhaps I'll only continue paying into one of the M&G bonds..

I would appreciate if you would comment on my portfolio. I am trying to diversify it, but still be fairly safe. I can afford to keep this money invested long term, this is my long term saving, not my rainy day back up. I pay in £50 pcm (alter between funds).

L&G (N)Tracker Trust A Acc
M&G High Yield Corporate Bond A Fund Acc
M&G Strategic Corporate Bond A Acc

Invesco Perpetual High Income
UBS Emerging Markets Equity Class A
Threadneedle American Extended Alpha Accumulation

Thank you

Any

No one? pls?
I am looking at one more fund - Invesco Perpetual UK Small companies.

Would it be a good fit? I see the performance is very good, and I believe that over long term there will be recovery in the UK market as well. The manager seems to know what he is doing based on past performance..

srcandas

Any wrote: »

No one? pls?
I am looking at one more fund - Invesco Perpetual UK Small companies.

Would it be a good fit? I see the performance is very good, and I believe that over long term there will be recovery in the UK market as well. The manager seems to know what he is doing based on past performance..

Any it is very difficult for anyone to comment because there are a million and one ways to diversify your portfolio. And many forms of diversification.

We'd need also to see the weightings and know more about your objectives in terms of timescale and future investment.

ok not very helpful but I just didn't want you to think the good folks here are simply ignoring you :beer:

Jegersmart

This is all very subjective (in terms of investment strategy and allocation) so will keep my comments directed at the funds you have chosen.

In my opinion the M&G funds are fine with good performance and M&G have some very good expertise in the fixed income investment area.

I have no idea what the L&G Tracker Trust is, looks closed to new investment? Can't see what it tracks exactly?

Invesco Perp is a core holding for many, a huge fund with good track record.

UBS Emerging markets I have never really looked at, has been outperformed by some but looks OK - any reason why you chose this one particularly?

Threadneedle American - have looked at this one myself nad is on my shortlist but I am not invested in the US now - looks a bit toppy for now.

On the whole, some good funds in there - some may have better alternatives but it dpeends on what you want out of this. If I were looking very long term only I would be investing in higher risk stuff generally and keeping an eye on it. It looks ot me like we may have a rough October and November in equities generalyl so I am waiting with committing funds too aggressively for now. I am currently 18% equities, 52% mainly corporate bonds and the rest in cash or near cash. I am feelign quite defensive at the moment it has to be said....:)

Good luck.

J

Any

Srcandas - Thank you for your comment. I realise it is difficult and up to each individual, I was really looking for thought provoking comments, such as "why this one" and "why do you believe it, my opinions is this based on this".. IYKWIM?

Jegersmart - Thank you. This is exactly what I was looking for.
The L&G is here, about half way downt the list http://www.nationwide.co.uk/investments/isa-unit-trust/fund_range.htm , L&G (N) Tracker trust.
I chose this one first, and signed up with L&G via Nationwide before I set up the H&L ISA. I will be probably moving it accross at some point (too little holding so probably just by sell in L&G and buy new one in H&L). Haven't decided yet, because you can put in money from as little as £20 a go, so I keep stashing change there. This one is doing really well actualy, it went up on average 8% since May (obviously this is very short term to judge properly, but it has done reasonably well and other trackers have £1-£2 pcm charge on H&L ISA).

All my funds have currently only little in, I only started just before summer. £100 each currenty (monthly saver).

My high risk is the American and Emerging markets. And will be the Invesco Perp smaller companies. That is where I think I will also be diverting my cash in near future.
I feel that buying in US and UK while it is still not out of recession could have good outcome long term.

UBS - I picked that one after long deliberation based on their split of countries and the split of industries they cover. Also they have high yield and not bad performance to date. Fairly new fund.
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=MJFR2&univ=O

N1AK

Hi Any, I'm not really clear on your strategy and goals. Also, choice of funds depends on how you want to manage your portfolio.

To take on example. You are considering the Invesco UK Smaller Companies because you think the UK recovery will happen and you think the manager knows his stuff. Ask yourself one honest question: Do you really believe you have the knowledge to effectively pick good funds/managers? The first comparative UK small company fund I checked considerably outperformed the Invesco one (Fidelity UK Smaller Companies)...

I'm a passive investing convert. This means I believe the best strategy for me is to invest in markets (using index funds) to keep fees low, benefit from dividend reinvestment and track the market. I believe this method is best for me because I don't intend to become an expert, and don't believe I can reliably pick funds that will beat the average (most don't). I have invested roughly equally in fund trackers for the UK, USA and Asia (I will buy into Europe at some point and if I could find a decent South America fund on Fidelity I'd buy in there as well).

The last thing I am saying is that my strategy is right, let alone right for you; what I wish to encourage you to do is decide what kind of investor you are going to be, what is involved etc.

Any

N1Ak
Hi and thanks.
I also have 1 tracker, and I have also considered tracker for emerging markets, it is on my list. Percisely for the reasons you say - low charges, long term accumulation.

And I also get your point on pick of managers - BUT, in my opinion, even trackers are firstly invented by managers, each company uses their own formulae of how/what to buy, what to sell, when to buy.. Then they set program to motion and let it run.

Again, some outperform actively managed funds, some however underperform. Trackers can be slow in reaction to markets. Espcially in volatile times. Opinions differ.

So that is kind of why I have both.. to kind of see for myself:-)

Any

N1AK wrote: »

The first comparative UK small company fund I checked considerably outperformed the Invesco one (Fidelity UK Smaller Companies)...

.

Fidelity vs Invesco - Fidelity outperformed, that is right, but they don't have long enough track record for me.
Also Fidelity are in my eyes not as reputable company as Invesco is.
They are higher risk as well. I thought that if I am going for something that risky in itself (as the market definitely is) I might go with someone of high reputation.

Hooloovoo

Any wrote: »

N1Ak
Hi and thanks.
I also have 1 tracker, and I have also considered tracker for emerging markets, it is on my list. Percisely for the reasons you say - low charges, long term accumulation.

I think you've got that the wrong way around, haven't you?

I'm a fan of passive investing and my entire portfolio uses tracker funds. But emerging markets are one place I could see that the argument for active funds has merit. The whole point of emerging markets is to spot the potentially big companies before they get big. So I can see a good manager would have potential here to outperform another less skilled manager.

I would have thought you want index trackers for the main markets, and a good active fund for emerging markets.

Having said that, I still decided to go for a L&G global emerging markets tracker in the end. But that's because I couldn't be bothered to try to find a good EM manager, and decided to just go fully passive instead.

Any

I wouldn't say I have it the other way round.. I enjoy doing the research and fussing about it.

I have tracker for UK. The L&G is UK.
And then I am just considering 1 for emerging.. haven't fully decided yet.

If I have a tracker, I will have both (active&tracker).

The small companies before they get big - that is what my small companies fund going to be about??

And I have manager for my emerging markets.

Bonds are for low/medium risk. So is the Neil Woodford's fund. To weigh it up a bit.

N1AK

Any wrote: »

And I also get your point on pick of managers - BUT, in my opinion, even trackers are firstly invented by managers, each company uses their own formulae of how/what to buy, what to sell, when to buy.. Then they set program to motion and let it run.

If you go with an index tracker then the fund is effectively 'unmanaged' the fund will buy shares in the companies that make up the index being tracked based on capitalisation (things like P/E trackers are coming about but not common).

This means that ever FTSE 100 index tracker will buy the same amount of the same shares; that is how the represent the index. For this reason TER is much more important to a tracker than who is running it.

Just to be clear. I have nothing against your choices, for example Invesco. I was asking you to challenge yourself on your level of knowledge and decide whether YOU think it is enough to give you a competitive edge when picking funds

I wish you the best of luck with your portfolio and hope you keep us updated on how it all goes.