Core strategy advice

Paulrm71

By the end of this year my portfolio will consist of the following:

Newton global income. 15%
Thread needle European select. 15%
Unicorn UK income. 7.5%
Axa framlington biotech. 7.5%
Black rock global emerging markets tracker. 7.5%
Black rock pacific ex Japan tracker 7.5%
HSBC Japan index. 7.5%
Other core fund. 32.5%

My problem lies with what fund to invest the balance with. I have been considering either the vanguard life strategy 80%, or the black rock consensus 85, however I am not sure if I am achieving much further diversification than I already have? The only benefits that I can see is that they are passive funds and hence have lower charges (not totally convinced by the passive argument, therefore I have a mix of active and passive), and have a small percentage in bonds.

I intend to be invested for a minimum of ten years and have a fairly high risk tolerance as I have a decent emergency fund in current accounts and premium bonds.

Please could I have your comments and advice.

Many thanks

Paul

Totton

You look light on Smaller Companies so why not take a look at something like Henderson Smaller Companies (HSL), Blackrock Throgmorton Trust (THRG), Arberforth Smaller Co's (ASL) or for an OEIC something like Unicorn Smaller Co's. Looking across to Europe there are a few that include Montanaro European Smaller Companies (MTE).

I'd also take a look at the likes of Witan (WTAN), Law Debenture (LWDB) and perhaps a mining fund such as Blackrock World Mining (BRWM) if you feel positive about the future.

masonic

The trouble with VLS and similar funds is if you want to invest in an active European fund, it is difficult to strike the right geographic balance. It would probably be easier for you to go for a separate US and UK tracker and avoid the overlap in European markets. I'd second the comment to think about adding a smaller companies fund.