World ex-UK fund

bigadaj

cuthbertlilly wrote: »

Thank you, this is very useful information. I like your suggestion of the MSCI ETF, but was looking to avoid dealing charges on such products - are there any comparable OEIC funds such as this?
The original £2.5k was intended to remain part of my overall re-structure. My dilemma is that I'd like to keep Woodford as I have a conviction towards his fund, but this conflicts with the already UK-heavy VLS80. How about if I pair Woodford with a different multi-asset fund? - looking at L&G Multi and Blackrock consensus they're both UK-heavy too . Therefore, I possibly need to ditch either VLS80 or Woodford and start from scratch again it seems.

I'd like to put £15k in this year and then see what I have available next year.

There's nothing stopping you going for a world ex uk tracker in etf or oeic guise as an alternative to vls.

bowlhead99

cuthbertlilly wrote: »

Thank you, this is very useful information. I like your suggestion of the MSCI ETF, but was looking to avoid dealing charges on such products - are there any comparable OEIC funds such as this?

You are not going to be doing very much "dealing" given you are just going to slap a few thousand into it and leave it for a while. A tenner fee on £3k over a couple of years is less than 0.2% a year which is broadly in line with what oeics cost on most platforms.

It is worth shopping around to find something comparable but I'm not aware of any oeics using these "differently weighted" indexes as most providers do them via ETFs these days, which can be more efficient for them to run (not least because they don't need to be held on a special fund platform, they can simply be bought via any broker).

Speaking generally, fees are important but asset allocation is most important so don't let small amounts of fees dissuade you from whatever investment portfolio you believe will provide the best ongoing exposure to your assets of choice.

The original £2.5k was intended to remain part of my overall re-structure. My dilemma is that I'd like to keep Woodford as I have a conviction towards his fund, but this conflicts with the already UK-heavy VLS80. How about if I pair Woodford with a different multi-asset fund? - looking at L&G Multi and Blackrock consensus they're both UK-heavy too . Therefore, I possibly need to ditch either VLS80 or Woodford and start from scratch again it seems.

Most multi asset funds destined for UK customers have some UK bias, it's what most UK customers want. Your problem is that you specifically want woodford for one component of the assets but are not bothered about the rest of the assets and would presumably be happy buying cheap trackers for the rest. So as someone else suggested you would have to build your own multi-asset portfolio to get exactly what you want.

For example, six ex-UK equities trackers and two or three bond funds and a real estate fund and you could add Woodford to have a global multi asset solution. But it means selecting all those funds, picking proportions and keeping them balanced.

You could cut down the number of funds by having a world ex-uk equities tracker instead of the 5 or 6 regional equities trackers but it would of course give a different result which might be better or worse.

cuthbertlilly

bowlhead99 wrote: »

You are not going to be doing very much "dealing" given you are just going to slap a few thousand into it and leave it for a while. A tenner fee on £3k over a couple of years is less than 0.2% a year which is broadly in line with what oeics cost on most platforms.

It is worth shopping around to find something comparable but I'm not aware of any oeics using these "differently weighted" indexes as most providers do them via ETFs these days, which can be more efficient for them to run (not least because they don't need to be held on a special fund platform, they can simply be bought via any broker).

Speaking generally, fees are important but asset allocation is most important so don't let small amounts of fees dissuade you from whatever investment portfolio you believe will provide the best ongoing exposure to your assets of choice.


Most multi asset funds destined for UK customers have some UK bias, it's what most UK customers want. Your problem is that you specifically want woodford for one component of the assets but are not bothered about the rest of the assets and would presumably be happy buying cheap trackers for the rest. So as someone else suggested you would have to build your own multi-asset portfolio to get exactly what you want.

For example, six ex-UK equities trackers and two or three bond funds and a real estate fund and you could add Woodford to have a global multi asset solution. But it means selecting all those funds, picking proportions and keeping them balanced.

You could cut down the number of funds by having a world ex-uk equities tracker instead of the 5 or 6 regional equities trackers but it would of course give a different result which might be better or worse.

I like your original suggestion of VLS80, MSCI World size factor ETF, a direct commercial property fund and 1/2 satellites. [I think I may keep the small Woodford holding as a small 'side bet' if you like separate to this main portfolio]. When you mentioned a defensive fund as a satellite - any suggestions? do you mean an absolute return fund? or something else? the other satellite will probably be an actively managed global smallcap fund or EM fund.

cuthbertlilly

I'm currently with Fidelity via Cavendish, does anyone know the best platform to hold VLS80, MSCI world size factor ETF and a property fund? (Fidelity hasn't got the MSCI available

bottleandahalf

cuthbertlilly wrote: »

I'm currently with Fidelity via Cavendish, does anyone know the best platform to hold VLS80, MSCI world size factor ETF and a property fund? (Fidelity hasn't got the MSCI available

Try here mate:
http://monevator.com/compare-uk-cheapest-online-brokers/

Plus

I don't see the point of a World ex-UK fund.

The UK is 5% of the world market, so a WorldexUK tracker is 95% the same as an All-World tracker. That's not very significant as far as asset allocation goes.

If you want the same makeup, buy an All-World fund and scale your UK holdings back by 5%. That will give you what you want with access to a much wider range of funds.