Inherited portfolio-too much duplication?

StellaN

Hi dutchism1958, I can't comment or add any input on the bonds because I don't hold them.

From a personal point of view I would definitely keep Baillie Gifford Japan in preference to Henderson and JPM.

On the global front, it would be Fundsmith with either Witan or Bankers or keep both because they are very good global IT's and are quite different in their holdings.

Thrugelmir

StellaN wrote: »

From a personal point of view I would definitely keep Baillie Gifford Japan in preference to Henderson and JPM.

Pays no dividend though. If the OP's aim is to generate a regular income.

The 3 funds are very different. EM covers a whole range of countries outside of Asia. With even Romania featuring heavily these days in a number of funds.

StellaN

Thrugelmir wrote: »

Pays no dividend though. If the OP's aim is to generate a regular income.

The 3 funds are very different. EM covers a whole range of countries outside of Asia. With even Romania featuring heavily these days in a number of funds.

Agreed, although if the OP is financially secure and this is an inheritance then maybe they can select a non-dividend paying IT especially with such good returns over the years?

dutchism1958

Thank you for your reply StellaN, how many funds do you hold in your porfolio if you don't mind me asking?.

dutchism1958

Thanks Thrugelmir,
My thought is to incorporate no more than 7-8 of these funds into my portfolio,which gives me 19 funds.You rightly mention that £3K is too small an amount for one holding,my thinking was a minimum of £10K but keeping EMs/Far East to no more than 5% of total portfolio.

Audaxer

dutchism1958 wrote: »

Then globally
IP Enhanced Income,
Ruffer,
Artemis Monthly Dist Strat.Bond
M&G Optimal Income A inc,
Jupiter Strat Bond,
Artemis Mthly Dist inst.inc

The global 6 seem sufficient for income and defensive.

Sorry for the long message,any opinions on thinning out these funds are appreciated.

I would check the charges of the funds as I see that the OCF of M&G Optimal Income A inc is 1.41%, and I know that there is a cheaper version at 0.91% available.

Just to note that the Artemis Monthly Distribution fund is not just bonds - it is a global multi asset fund that includes 46% equity.

dutchism1958

Thank you Audaxer that is helpful,I'll check it out.

ColdIron

If this were my income portfolio and I wanted to take a hacksaw to it I might do something like ...

Keep Bankers and Murray International for global, the other two don't pay a great dividend. If I wanted to keep one for growth I'd prefer Witan for its greater diversity

Henderson Far East would probably do for Asia, if you want 5% Asia/EM I'd take it in preference to the JPM fund and the Baillie Gifford fund is no good for dividends

I'm not sure what the 2 Artemis funds are, could they be 2 classes of Artemis Monthly Distribution? It's a mixed investment 20-60% fund so would sit fine with the rest

I wouldn't say Henderson Diversified Income is Europe, it's a global trust, but it's high yield and holds assets not held elsewhere that are best held in an IT. I'd happily pair it with Invesco Perpetual Enhanced Income for the yield but don't think the New City fund brings much else to the party

There are several funds in the Fidelity Money Builder range but assuming you mean the Income one, it's a good standard GBP Corporate bond. M&G Optimal Income is a stalwart GBP strategic bond but I think I'd take the Jupiter fund for the income

I'm not sure what job Ruffer would do in this income portfolio especially you are financially secure with other investments

16 funds down to 8 or 9 with blood on the floor. I might add one or two others but that's how I'd thin it out at first glance

That's my tuppence worth, but it's all about opinion

StellaN

dutchism1958 wrote: »

Thank you for your reply StellaN, how many funds do you hold in your porfolio if you don't mind me asking?.

Not at all, I currently hold 10, however I want to add a couple of IT's quite soon so it will be 12 in total.

Eco_Miser

dutchism1958 wrote: »

The whole portfolio is already in ISA's.

dutchism1958 wrote: »

They can still inherit the assets within the ISA as cash or shares but the interest on the ISA becomes taxable at the point of death.

And the dividends, and the capital gains, subject to the various nil-rate allowances.
So they're not really in an ISA any more, and you'll probably want to move them into your ISA (and spouse's ISA?) as quickly as possible.