Views please on £280k investment portfolio

BananaRepublic

aroominyork wrote: »

Re my expectations, 8% would be about half of how these funds have performed over the last five years.

We have had a long bull run since the last crash. So it is quite possible that funds would achieve significantly less growth over the next five years.

aroominyork

Banana, I wrote that back in July when I was just starting out. A lot of water and many threads have flowed under the bridge since then. Not sure why neverists resuscitated this thread but of the funds I mentioned in my first post I now only hold two, one of which is Baillie Gifford Japan Trust, and while the Legg Mason fund looks great fun I think I'll stay put.

BananaRepublic

aroominyork wrote: »

Is there a template for how to do a robust stress test? How do you set scenarios?

I have been looking at managed funds' holdings and seen fundamental differences. Looking at the top ten holdings of the three funds I mentioned above, Royal London picks individual stocks; Ballie Gifford uses its in-house funds and some individual stock picking; Hawksmoor uses other companies’ funds (Jupiter, Henderson etc.). Interesting.

A crude method is to look at the returns from a given index over a range of 5 year periods, such as 2000-2005, 2001-2006 and so on, but use as large a date range as you can. You could just look at the value of the index, but that ignores dividends. However, it would at least give you a measure of the expected variation. This of course assumes a fund that tracks the index.

BananaRepublic

aroominyork wrote: »

Banana, I wrote that back in July when I was just starting out. A lot of water and many threads have flowed under the bridge since then. Not sure why neverists resuscitated this thread but of the funds I mentioned in my first post I now only hold two, one of which is Baillie Gifford Japan Trust, and while the Legg Mason fund looks great fun I think I'll stay put.

Okay Room, point taken. However, to assume that recent past gains in the Japanese market will continue is optimistic, unless it forms a modest proportion of your portfolio.

cynicaldoc

Very interesting reading for a newbie. I have kept my portfolio very simple, albeit active after a lot of reading herein and elsewhere.

2/3 in Lindsell Train Global Equity and 1/3 in SMT. I realise there are fees that are higher than Vanguard (which I did hold initially) but for me, at the moment, those fees are relatively small as my portfolio is currently relatively small.