General election and investment timing...

edinburgher

This one reads like it was written by the YTS kid.

Was it the use of 'fever' in the link title that gave it away? Reminds me of the Simpsons episode when newsreader Kent Brockman's nephew is writing the comments for the Autocue

TheTracker

I'll be throwing 40k in a SIPP and 15k in an ISA in April as a result of the new tax year, filling the quota as I do each year. I'll be doing so whatever the polls say and whether or not there is an election. I'll be contributing to the same funds I hold today with amounts that rebalance my holdings to my predetermined allocation, whether or not Europe or Japan or Usa is "cheap" or "overvalued".

ColdIron

Borrowedtune wrote: »

Is this the famous HL research that some think is worth paying thousands a year for ?

How much did you pay for it?

Kendall80

TheTracker wrote: »

I'll be throwing 40k in a SIPP and 15k in an ISA in April as a result of the new tax year, filling the quota as I do each year. I'll be doing so whatever the polls say and whether or not there is an election. I'll be contributing to the same funds I hold today with amounts that rebalance my holdings to my predetermined allocation, whether or not Europe or Japan or Usa is "cheap" or "overvalued".

Personally I think it sensible to increase European exposure right now. QE may not be a good thing in the long run but why not take advantage of it while we can?


I've bumped up my euro tracker allocation and JPM dynamic Europe hedged. Putting me at 30% Europe - up from 20% at the start of the year.


As for the UK elections - I would think the 'uncertainty' has been priced into the market. However, the exact result is at present difficult to predict so maybe we will see a significant rise or fall. I'm happy to leave those concerns to Mr Woodford I will however be attempting to top up my UK funds on any dips.

tigerspill

TheTracker wrote: »

I'll be throwing 40k in a SIPP and 15k in an ISA in April as a result of the new tax year, filling the quota as I do each year. I'll be doing so whatever the polls say and whether or not there is an election. I'll be contributing to the same funds I hold today with amounts that rebalance my holdings to my predetermined allocation, whether or not Europe or Japan or Usa is "cheap" or "overvalued".

Would you be prepared to name the funds you use and %ages? I totally understand if not. I just like to understand what others do and learn.

TheTracker

tigerspill wrote: »

Would you be prepared to name the funds you use and %ages? I totally understand if not. I just like to understand what others do and learn.

Sure. I'm 60:40 equities / fixed. The 60 is comprised of 8 funds

• 24 in whole equity, split between Vanguard UK All Share and Vanguard Dev World ex UK
• 12 in small cap, split between iShares MSCI UK Small Cap and Vanguard Global Small Cap
• 12 in value, split between Vanguard FTSE UK Equity Income and Vanguard All World High Dividend Yield
• 6 in EM, Vanguard Emerging Markets
• 6 in global real estate, Blackrock Property

Noting

• The value tilt funds are not pure value, but I'd rather use approximations with low fee than active funds with high fee. I hope offerings improve here.
• The allocation is basically the same as the 60/40 portfolio in Tim Hale's book, minus Commodities which is redistributed to small/value, and with a reduced home bias.
• About 10 of the remaining 40 is P2P.
• I've a smattering of EIS not included above. I'll possibly decide to add significantly (5-10%) to VCT/EIS going forward, but will cross that bridge when I come to it and decide how to change the other allocations to balance.
• I'll decide to head to higher or lower equity as I age. This will depend on value and loss appetite at the time.
• I change funds according to improved OCF and also washing them against CGT allowance with short term alternatives.
• If only I could just hold 8 funds. Spreading a portfolio across SIPP, ISA, and Trading accounts means multiple holdings of the same fund.

Hope that helps. It's curious so few regulars here post their portfolios.

zolablue25

Election results and timing? Purely relies on sentiment. I am not an experienced investor but have read the City Pages of various outlets for many years and the one thing I can say is that, depending how sentiment is at the time depends how news in interpreted.

For example a Tory victory is either "Great- a friend of business" - positive sentiment - market goes up..

Or

"Oh no, uncertainty over Europe" - negative sentiment - market goes down.

The opposite of these would apply for a Labour win.

There is good news and bad news in (almost) every event, it just depends which glasses you are looking through at the time (and by you, I mean Mr Market as a whole)

tigerspill

TheTracker wrote: »

Sure. I'm 60:40 equities / fixed. The 60 is comprised of 8 funds

• 24 in whole equity, split between Vanguard UK All Share and Vanguard Dev World ex UK
• 12 in small cap, split between iShares MSCI UK Small Cap and Vanguard Global Small Cap
• 12 in value, split between Vanguard FTSE UK Equity Income and Vanguard All World High Dividend Yield
• 6 in EM, Vanguard Emerging Markets
• 6 in global real estate, Blackrock Property

Noting

• The value tilt funds are not pure value, but I'd rather use approximations with low fee than active funds with high fee. I hope offerings improve here.
• The allocation is basically the same as the 60/40 portfolio in Tim Hale's book, minus Commodities which is redistributed to small/value, and with a reduced home bias.
• About 10 of the remaining 40 is P2P.
• I've a smattering of EIS not included above. I'll possibly decide to add significantly (5-10%) to VCT/EIS going forward, but will cross that bridge when I come to it and decide how to change the other allocations to balance.
• I'll decide to head to higher or lower equity as I age. This will depend on value and loss appetite at the time.
• I change funds according to improved OCF and also washing them against CGT allowance with short term alternatives.
• If only I could just hold 8 funds. Spreading a portfolio across SIPP, ISA, and Trading accounts means multiple holdings of the same fund.

Hope that helps. It's curious so few regulars here post their portfolios.

Thanks. I have been going down the VLS route mainly (specifically the LS 44).
I am just wondering from here on should I buy specific tracker funds.
I have heard some say with larger sums it is better to choose individual funds rather than using LS type funds. I am not sure I understand why, but I might look at this.
I have bought a couple of other funds with reasonably small sums - e.g. SL GARS, Woodford and the Blackrock Property funds.

bowlhead99

tigerspill wrote: »

Thanks. I have been going down the VLS route mainly (specifically the LS 44).
I am just wondering from here on should I buy specific tracker funds.

.
The LS fund was put together by professionals getting their heads together in a room. Do you think you have an allocation that is "better"?

I have heard some say with larger sums it is better to choose individual funds rather than using LS type funds. I am not sure I understand why, but I might look at this.

If you have lots to invest you can probably reduce overall fees a little, by buying the cheap components directly and periodically 're-balancing' the holdings -compared to taking their "out of the box" pricing.

Plus it gives you more control and you can use say 15 individual instead of their 12 or whatever.And if you wanted one specific fund for one particular sector, buying vls would leave you overexposed to that sector and you'd have to buy all the balancing components manually anyway.

But IMHO you should not do this without a clear understanding of why your holdings and proportions will be better.

I have bought a couple of other funds with reasonably small sums - e.g. SL GARS, Woodford and the Blackrock Property funds.

So, you have already broken the VLS allocation proportions to give yourself more in property via blackrock, relatively more in UK (focussed in income-payers) and relatively less in Asia via Woodford, and relatively more in an esoteric mix of absolute return and relative return strategies via SLGARS.

Each of those funds deliberately invests with a strategy that VLS does not. You have changed the risk profile by creating a different mix of asset classes and geographies. Do you now have a fund more suited to your needs? Up to you. That is all part of the fun of the fair when you are inexperienced and choose to DIY .

Enjoy!

tigerspill

bowlhead99 wrote: »

.
The LS fund was put together by professionals getting their heads together in a room. Do you think you have an allocation that is "better"?

Nope - I know I don't. This is why the vast majority of my investment is in VLS.

bowlhead99 wrote: »

If you have lots to invest you can probably reduce overall fees a little, by buying the cheap components directly and periodically 're-balancing' the holdings -compared to taking their "out of the box" pricing.

Plus it gives you more control and you can use say 15 individual instead of their 12 or whatever.And if you wanted one specific fund for one particular sector, buying vls would leave you overexposed to that sector and you'd have to buy all the balancing components manually anyway.

TBH. For me, the fees are OK. It makes much less work for me.

bowlhead99 wrote: »

But IMHO you should not do this without a clear understanding of why your holdings and proportions will be better.
So, you have already broken the VLS allocation proportions to give yourself more in property via blackrock, relatively more in UK (focussed in income-payers) and relatively less in Asia via Woodford, and relatively more in an esoteric mix of absolute return and relative return strategies via SLGARS.

Each of those funds deliberately invests with a strategy that VLS does not. You have changed the risk profile by creating a different mix of asset classes and geographies. Do you now have a fund more suited to your needs? Up to you. That is all part of the fun of the fair when you are inexperienced and choose to DIY .

Enjoy!

I appreciate that I have now upset the VLS balance. But the %ages I have in these other funds are relatively small so I am happy with this. My plan is to continue the VLS as my core and maybe a few satellite funds that I fancy as I go along. Thought I don't expect this to be too many.
Sometimes I fail to get my head around the VLS thing and have to rethink to satisfy myself that it is what it is and tries to cover all basses. Then I content myself again.