Rate my S&S ISA Portfolio?

dannylfc_1

Hi folks,
Disappointed with cash saving rates I have been looking into S&S ISAs for a few weeks and I am now on the brink of setting one up, but I would like to hear what you guys think and possibly fine tune my choices before I go ahead. I will be investing over the long term.
I am bullish equities in a world drugged up on QE in the battle against lowflation and I am ready to set aside £10k initially into a fairly risky portfolio.

Platform - Cavendish online

Vanguard - FTSE Developed Europe ex-UK stock index - 10%
Vanguard - Japan stock index - 10%
Vanguard - USA stock index - 20%
Vanguard - EM stock index - 10%
Schroders - euro smaller comps fund z - 10%
Schroders - US smaller comps fund z - 10%
M&G - Japan smaller companies - 10%
Franklin Templeton - India fund - 10%

Vanguard - Global bond index - 10%

Please let me know what you think.
Many thanks
Danny

Drp8713

Is there any reason why you completely missed out the UK and why you went for an India fund instead of one covering wider Asia ex Japan?

ColdIron

Have you thought about adding some UK smaller companies

gadgetmind

I was in Japan for a week or so late last year, and TBH the place has lost its mojo. Compared to the buzz you get in the US, Taiwan, China, and even Israel, the atmosphere in Japan is one of resignation to a gradual decline.

I asked one chap in Japan whether we could create new opportunities by funding start-ups partly by seeding technology into them (a model we use elsewhere) and he looked at me like I was mad. They just don't seem to have startups at the moment.

dannylfc_1

Drp8713 wrote: »

Is there any reason why you completely missed out the UK and why you went for an India fund instead of one covering wider Asia ex Japan?

Thanks for your replies folks.

Yes I missed out the UK because although the UK may benefit from ECB's open ended QE programme it is more a Europe story. Plus, as an investor the UK just doesn't look that appealing to me at this moment in time. Business indicators are turning, growth has moderated, uncertainties around the upcoming general election in May.

India was a bit of a punt to be honest, on the back of a recommendation. India is implementing quite a bit of reform under Modi and I note the Reserve Bank of India reinforced that with a surprise rate cut last week.
What is your view on the Asia region? Any funds you like?

System

Very overweight Japan. Also without a currency hedge against the yen any gains Japan makes will probably be wiped out by currency weakness

Very underweight UK.

Overweight India.

dannylfc_1

ColdIron wrote: »

Have you thought about adding some UK smaller companies

A little bit, but see my response on the UK above. I may be wrong, however. Plus of course, when you go for smaller companies much relies on the skills of the portfolio managers.

dannylfc_1

teepee83 wrote: »

Very overweight Japan. Also without a currency hedge against the yen any gains Japan makes will probably be wiped out by currency weakness

Very underweight UK.

Overweight India.

You make a good point on FX risk, are there any funds out there in this region with GBP hedge that you like?

ColdIron

dannylfc_1 wrote: »

A little bit, but see my response on the UK above. I may be wrong, however. Plus of course, when you go for smaller companies much relies on the skills of the portfolio managers.

I was being facetious, I feel you are overweight on smaller cos, underweight on UK and was trying to illustrate this

racing_blue

Your asset allocation 90% equities/ 10% bonds. Do you have a good reason to include bonds?

With a 10K total investment you could put 1K into a cash ISA instead. Would this achieve what you are looking to achieve?

System

dannylfc_1 wrote: »

You make a good point on FX risk, are there any funds out there in this region with GBP hedge that you like?

Schroder Tokyo Hedged is an option, also GLG japan core alpha do an offshore hedge. Neptune japan opps is naturally hedged.