S&S ISA critique please?

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
52 replies 6.7K views
cornburncornburn Forumite
12 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hi all,

A few months ago I moved approx 1/3 of my total savings into a S&S ISA with Hargreaves Lansdown. I have all but £6k invested in the following, and am struggling to decide where to put the last £6k of my allowance. I thought I'd ask if any of the more knowledgeable can see an obvious gap that I could look into? At the moment I have £12k in funds & £5k in shares. Currently almost £600 down from 3 months ago :S Cheers!!

1 Cash 26.0% (the bit left to invest!)
2 Invesco Perpetual High Income 25.2%
3 Liontrust UK Growth Class R 8.9%
4 BMW AG Pfd. 8.3%
5 Tesco 7.9%
6 Newton Asian Income GBP Inc Shares 6.0%
7 Henderson Global Technology Class A 4.6%
8 Ubiquiti Networks 4.5%
9 Old Mutual Global Investors UK Dynamic Equity Class A* 4.3%
10 Fidelity South East Asia Class A 4.2%
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  • planteriaplanteria Forumite
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    some decent long-term investments there....not really sure where to suggest the gaps are.
  • edited 22 June 2013 at 8:36AM
    bowlhead99bowlhead99 Forumite
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    edited 22 June 2013 at 8:36AM
    planteria wrote: »
    some decent long-term investments there....not really sure where to suggest the gaps are.
    Really?? :rotfl:

    I suppose you could start with "anything that is not in UK or Asia-ex-Japan" which gives you 80%+ of the world public equities markets.

    You could then add "anything non-equities" which gives you all the bond markets on the planet (being what, three times the size of the world public equities markets?) and global real estate, commodities etc. And then there are other alternative investments such as private equity, hedge etc.

    So if you look at the markets covered by cornburn's portfolio as a percentage of world investible opportunities, it would certainly be in single figures, and not high single figures. And then within that, over a quarter of the portfolio once the last 6k is spent will be in one single car manufacturer, one wireless network business, and one UK supermarket.

    It is a ridiculous portfolio if you are aiming for something balanced.

    No significant exposure to Japan, or Europe, or USA (apart from maybe £300 via the Inv Perp fund and less than 1k restricted to the high tech sector within the Henderson fund).

    The asian income fund is about a third Australia/New Zealand and a third HK/Singapore/Korea, leaving a third in emerging markets (Thailand being the biggest component). So with 6% in the fund, this EM third is 2% and you have another dedicated south east asian fund so maybe you could say there's 5-6% in EM total.

    For someone with a high risk equities based portfolio it's maybe a bit surprising that only 6% of it is in emerging markets (although obviously some of the developed-markets businesses in asia and the UK (and BMW/Ubiquiti) will have a decent chunk of emerging markets customers). Having the super-high appetite for risk which you're displaying, I'm surprised you have no exposure to Russia, Latin America or Africa etc through a global EM fund. But IMHO that would be low down the priority list after you had tried to balance up the rest of the portfolio from being a weird mixed bag of UK and global hightech and random individual company picks.

    Planteria's comment that there are some decent long-term investments there, is true. Each of them will likely produce some good returns over a very long term outlook. All of them could give you nice returns over a ten year period. If your convictions towards equities in the UK, Asia-exJapan and hightech (plus the three individual companies), at the expense of all the other investment opportunities in the world, are well founded, you could make some nice returns.

    It is of course important to realise that what goes up might also go down. If you have lost 600 on 17000 in a few months, that 3.5% is just 'noise' on a portfolio like this, which at any given time over the next 10-20 years could easily lose 35% in a month, or 60% over a year. I hope you're prepared for that. It might be ten years from now after you have a lot of paper gains and be a non issue. It might be in a few months. Equiniti has been listed under two years, and although it's currently valued pretty much where it started, it has already been at double its IPO price, and it has already been 1/3 below its IPO price.

    Not sure if the reference to 1/3 of your total savings is the 17k currently invested or the 23k including undeployed cash? Either way if the other 2/3 of your savings is somewhere safe and not needed for general living or emergencies, you will have the opportunity to buy more if/when your portfolio crashes. We have no idea your specific goals. As you're investing outside a pension, then perhaps you are thinking you want to be able to access this money at some point in the forseeable future rather than way off in retirement. If so, it would make sense to put the last 6k into something not correlated with developed UK equities and think long and hard about why those specific individual companies are going to give you a better long term result than investing through a fund into a more diversified bag of risks and incomes.

    I wouldn't dream of saying 'rip it up and start again', because it's your money and it's your goals you're aiming for and you probably know why you bought each of those investments as part of your plan. As mentioned, I would completely agree with planteria saying "there are some decent long-term investments there". I would completely disagree that it's difficult to pick holes in it or find something out there that you don't already have.
  • planteriaplanteria Forumite
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    you can give your advice without slating me;)

    fwiw, my portfolio is broadly based on:
    1. UK Companies with worldwide earnings
    2. Growth Markets
    i don't have specific exposure to USA, Japan, Europe either. i get the logic, but Unilever, Glaxo, Glencore etc. are UK listed but 'Worldwide' companies

    "Planteria's comment that there are some decent long-term investments there, is true." Glad you agree. i like the look of the Liontrust Fund, i am invested in the Fidelity Fund, and i suppose the Invesco fund is difficult to argue with as a long-termer. i just tend to think that i can 'have a go' at that part of my portfolio myself, and have funds to cover areas i dont know/can't access and be prepared to pay the fees.

    good luck with it cornburn:o
  • bowlhead99bowlhead99 Forumite
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    No slating intended ;) , like I said I agree with the bit about there being some good funds. I disagreed there are no gaps.

    If the guy likes sector-specific / global thematic investing like his technology fund, we could suggest heathcare or biotech.

    If he likes dodgy emerging markets of south east asia perhaps we could suggest the ones in other emerging parts of the world.

    If he likes the developed markets of the UK perhaps the US would be appropriate as it has big blue chip multinationals with a different mix of opportunities (albeit Technology is a major one and already covered) and primary currency.

    There are all kinds of things to suggest. However, reading your comment again I do kind of agree with your not being "really sure where to suggest the gaps are", because they are basically everywhere and we don't know what he wants out of life to be able to tell if he would miss them if he didn't have them. On the basis there are lots of 'critique my portfolio' threads to review in the archives, perhaps just best to say there is room for improvement and leave it at that!
  • marathonicmarathonic Forumite
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    It seems a bit of a random portfolio to me.... as in, I don't think anyone would ever go into an IFA, regardless of what their risk appetite is, and come out with a portfolio looking like that.
  • planteriaplanteria Forumite
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    i didn't say there were no gaps, just that i wasn't sure where i would definately look to plug

    & i'd be interested to get an overview of the sort of portfolio an IFA does put together that you guys rate. anyone got a summary?
  • A_Flock_Of_SheepA_Flock_Of_Sheep Forumite
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    Even my early work portfolio seemed more balanced and diversified than that.
  • A_Flock_Of_SheepA_Flock_Of_Sheep Forumite
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    planteria wrote: »
    i didn't say there were no gaps, just that i wasn't sure where i would definately look to plug

    & i'd be interested to get an overview of the sort of portfolio an IFA does put together that you guys rate. anyone got a summary?

    I must agree on this. People put together a portfolio based on research, books etc then put it on here only for it to be ripped to shreds. In fact I can't think I have ever seen a portfolio listed on here where people say it is amazing.

    I would be interested to see the contents of Bowlheads portfolio to see how diversified and balanced it is.... Care to avail us?
  • edited 22 June 2013 at 2:22PM
    grizzly1911grizzly1911 Forumite
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    edited 22 June 2013 at 2:22PM
    I must agree on this. People put together a portfolio based on research, books etc then put it on here only for it to be ripped to shreds. In fact I can't think I have ever seen a portfolio listed on here where people say it is amazing.

    I would be interested to see the contents of Bowlheads portfolio to see how diversified and balanced it is.... Care to avail us?


    Every ones view will be different once you get past the diversification and mix. Even if you get a "perfect" spread and balance doesn't mean you will do better or lose less than another mix over the longer term.

    Even the views of individual advisers will differ on specifics. I know one portfolio that has been trashed and rehashed by a new adviser within 6 months of it's last review by a previous one. Have they interpreted the ATR differently (increased) to make the goals more attainable? Will this be be a good revision only time will tell. I know where the bulk of the first years growth will be and it may never be recovered in the clients lifetime.

    What suits one persons goals and aspirations will different to another. I might be happy with a ongoing return of 9% somebody else will want and hope for more. Somebody may want a bargain bucket tracker someone else may be willing to pay 2% to chase a better return.

    Some will sit on individual losses waiting for the recovery others would have long since cut and run.

    It would be interesting to know why the OP chose the present selection.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
  • grizzly1911grizzly1911 Forumite
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    planteria wrote: »

    & i'd be interested to get an overview of the sort of portfolio an IFA does put together that you guys rate. anyone got a summary?


    It would vary from one client to another depending on circumstances, goals, aspirations, needs and their perceived attitude to risk.
    "If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....

    "big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham
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