Please rate my porfolio

mmo_2

Hi,
I have noticed a few threads requesting you folks to have an opinion of their fund investment. I also would like to join them if I may.

My background
- Age 30 years old
- Currently living on my own with no dependent
- earns about 38k per year
- 8k in cash Isa
- 14k in saving accounts
- 18k in s&s isa

I have started investing in about 2014 and it has returned about 3k over the past two years.

The funds and the makeup of my porfolio are

- Jupiter distribution inc 19%
- iShares Asia Pacific Dividend UCITS ETF (GBP) 17%
- Vanguard LifeStrategy 100% Equity Fund A Inc 16% (I recently switched to it from first state global listed infrastructure which has performed well throughout)
- Artemis Monthly Distribution Fund Class Institutional Income 15%
- iShares physical gold 11%
- Legal & General Multi-Index 3 Fund I Dist 8% (switched from money builder balanced which have increased in value after referendum)
- iShares FTSE 250 UCITS ETF (GBP) 8% (this is newly added fund as I am very bearish during these Eu negotiations and expects dips, and intend to top up in those times)
- Investec Global Energy I Acc Net GBP 5% (this is just there to mess around )



My intention is to put that 14k slowly into my s&s isa, income funds are preferred as they give dividend and it feels like it is doing something.

but then I don't like the idea of falling into the path where government wants people to take. I.e. Lower interest rates and QE means cheap money and driving savers toward stock market. At some point the policy makers will run out of idea and the charts will go downward. On the other hand, I don't have any plan yet to use money (e.g. Buying house) and would like to keep it somewhere for longer terms.

Thanks and advice much appreciated
mmo

slowpoke_rodriguez

I'd leave the 14k in the savings accounts and get the cash ISA transferred to the S&S ISA pronto.
Unless you have an excellent deal you'll be getting a better rate of interest on the non ISA savings accounts than on the cash ISA, and the interest recieved isn't going to trouble the tax man.

sorcerer

Why so much income funds, why not buy the Acc funds instead and allow the dividends to build up. Do you have a purpose for the extra cash?

Gram_Parsons

I would pick one multi-index fund that has the ratio of equities to bonds that I'm comfortable with and get on with enjoying that 38K a year. That's what I'd do.

DiggerUK

"but then I don't like the idea of falling into the path where government wants people to take. I.e. Lower interest rates and QE means cheap money and driving savers toward stock market. At some point the policy makers will run out of idea and the charts will go downward. On the other hand, I don't have any plan yet to use money (e.g. Buying house) and would like to keep it somewhere for longer terms."

QE is considered to be the main cause of equities holding up. I consider that there is more to come. Don't forget the massive amounts going in to share buy backs.

Would urge you to increase your gold holdings..._

Linton

Why do you have 4 global funds mainly investing in a similar collection of large global companies? Why not just one?

Why are you going so much for income funds which restricts the sectors you cover? eg there arent many income generating tech companies. There are many income generating finance sector companies.

If you want smaller companies, and I think you should, why just UK?

The portfolio looks confused.

d70cw6

about 384.
maybe 385.

mmo_2

Hi all,
Thanks for the comments. It is very helpful.

@Rodriquez,
The reason I think about transferring 14k than 8k is that isa transfer just takes some time. I am currently with fidelity for s&s isa and the cash isa is with nationwide and not really earning that much.

@sorcerer,
I prefer inc funds as I can keep track of their price fluctuations with dividend reinvested prices. I can see them in transactions for the funds. I don't remember exactly if I can do that with acc funds.

@Grams,
Yes my final goal is to have a simple porfolio but a lot of things happening at the minute. I don't want to be caught up in wrong time.

@Digger,
I don't really feel confident about QE and that why I hold some gold to keep things balanced. I do have plans to put more into gold but still the price is above i am happy to pay.

@linton,
Thanks for pointing out about tech companies not offering much inc. I want to get rid of Artemis(13% up) and Jupiter(2.5% up) and eventually keep only index and passive funds spread globally. I am not sure about the fact that they have similar holding. When I checked last time using fidelity x-Ray, it doesn't look too bad.

Thanks all,
mmo

gezzerboy

I would also say well done on getting that much invested at 30 yrs old. Lots of people have not bothered... nice work fella

dunstonh

It seems to be a bit all over the place without any structure.

It has a couple of multi-asset funds but at totally different ends of the spectrum. Then a few very high risk niche funds thrown in with allocations that would be higher than most high risk portfolios would have.

This sort of random disorganised structure typically leads to lower returns over the long term. Although short term periods of out performance as possible as a result of luck rather than judgement.

mmo_2

Ok. I have been making some improvements to my ISA for the past few weeks. I have removed some of my specialist funds and increase my gold holding, even though it feels quite high time to buy it.

My current holding looks like this now:

Bond Vanguard Global Bond Index Inc 15.33%
Bond Vanguard short term bond 3.31%
Equity Vanguard LS 100% Equity Inc 17.24%
Equity iShares MSCI Europe UCITS ETF 2.32%
Gold iShares phyical gold ETC 28.06%
Cash 33.73%

In the end,
The spread of funds should be:
Cash 18%
Gold 30%
Equity 32%
Bond 20%

I plan to keep things the way they are for at least 5 years and keep topping up my monthly saving. Then may be increase the cash % later if I decide to dedicate some saving for house deposit. Let me know if it looks confused again?