Great British Invest off or Passive V Active Portfolios

Thrugelmir

Bobziz said:

@Prism that's a fair bit in UK. Consensus seems to be that it represents good value and has been held back by uncertainty. I guess the strengthening pound is also positive unless the companies held earn a fair chunk overseas. What's your reason for overweighting ? Thanks.

When many investors judgement becomes clouded. That's the time to invest. The negative mantra towards the UK over past months simply provided opportunities to invest for the long term. 

bostonerimus

Back in Oct 2017 I was at this 50/25/25 allocation and $1.33 bought a pound

$50000 VTSAX......Vanguard Total Stock Market Index Admiral
$25000 VTIAX .......Vanguard Total International Stock Index Admiral
$25000 VBTLX.......Vanguard Total Bond Market Admiral.

Today April 2021 its $1.37 per pound and 

$82801VTSAX......Vanguard Total Stock Market Index Admiral
$31476 VTIAX .......Vanguard Total International Stock Index Admiral
$30491 VBTLX.......Vanguard Total Bond Market Admiral.

so the $100k has grown to $144.8k and doing absolutely nothing the allocation is now 57/22/21
In pounds the total is GBP 140.6k

Bobziz

Thrugelmir said:

Bobziz said:

@Prism that's a fair bit in UK. Consensus seems to be that it represents good value and has been held back by uncertainty. I guess the strengthening pound is also positive unless the companies held earn a fair chunk overseas. What's your reason for overweighting ? Thanks.

When many investors judgement becomes clouded. That's the time to invest. The negative mantra towards the UK over past months simply provided opportunities to invest for the long term. 

Indeed, but I'm interested in the detail behind the 'clouded' bit. Is it market sentiment as a result of uncertainty and associated reduction/stagnation of investment, and if sentiment is now changing is that because the uncertainty has reduced ? Feels like early days in terms of understanding whether the opportunities for growth in FTSE listed companies will improve from where they were before the clouds descended. Are those overweighting UK taking a punt ?

Thrugelmir

Bobziz said:

Thrugelmir said:

Bobziz said:

@Prism that's a fair bit in UK. Consensus seems to be that it represents good value and has been held back by uncertainty. I guess the strengthening pound is also positive unless the companies held earn a fair chunk overseas. What's your reason for overweighting ? Thanks.

When many investors judgement becomes clouded. That's the time to invest. The negative mantra towards the UK over past months simply provided opportunities to invest for the long term. 

Indeed, but I'm interested in the detail behind the 'clouded' bit. Is it market sentiment as a result of uncertainty and associated reduction/stagnation of investment, and if sentiment is now changing is that because the uncertainty has reduced ? Feels like early days in terms of understanding whether the opportunities for growth in FTSE listed companies will improve from where they were before the clouds descended. Are those overweighting UK taking a punt ?

Did you know the UK sucked in more foreign investment into the Tech sector in 2020 than France and Germany combined? The UK ranked third behind only the USA and China in term of total investment. It's estimated that the digital tech sector now employs around 3.1 people in the UK.  Greater than construction 1.9 million and financial services 1.2 million. There's a world of opportunity outside the FTSE. 

Bobziz

Thrugelmir said:

Bobziz said:

Thrugelmir said:

Bobziz said:

@Prism that's a fair bit in UK. Consensus seems to be that it represents good value and has been held back by uncertainty. I guess the strengthening pound is also positive unless the companies held earn a fair chunk overseas. What's your reason for overweighting ? Thanks.

When many investors judgement becomes clouded. That's the time to invest. The negative mantra towards the UK over past months simply provided opportunities to invest for the long term. 

Indeed, but I'm interested in the detail behind the 'clouded' bit. Is it market sentiment as a result of uncertainty and associated reduction/stagnation of investment, and if sentiment is now changing is that because the uncertainty has reduced ? Feels like early days in terms of understanding whether the opportunities for growth in FTSE listed companies will improve from where they were before the clouds descended. Are those overweighting UK taking a punt ?

Did you know the UK sucked in more foreign investment into the Tech sector in 2020 than France and Germany combined? The UK ranked third behind only the USA and China in term of total investment. It's estimated that the digital tech sector now employs around 3.1 people in the UK.  Greater than construction 1.9 million and financial services 1.2 million. There's a world of opportunity outside the FTSE. 

Ha, I thought you might come up with an interesting snippet like that. VCT's are a possible route in I guess? We certainly have room to grow with tech representing what 2% of the FTSE.

There is indeed a world outside the FTSE but it is the FTSE that many are now overweighting isn't it ? Following the herd without really knowing why ? 

Thrugelmir

Bobziz said:

Thrugelmir said:

Bobziz said:

Thrugelmir said:

Bobziz said:

@Prism that's a fair bit in UK. Consensus seems to be that it represents good value and has been held back by uncertainty. I guess the strengthening pound is also positive unless the companies held earn a fair chunk overseas. What's your reason for overweighting ? Thanks.

When many investors judgement becomes clouded. That's the time to invest. The negative mantra towards the UK over past months simply provided opportunities to invest for the long term. 

Indeed, but I'm interested in the detail behind the 'clouded' bit. Is it market sentiment as a result of uncertainty and associated reduction/stagnation of investment, and if sentiment is now changing is that because the uncertainty has reduced ? Feels like early days in terms of understanding whether the opportunities for growth in FTSE listed companies will improve from where they were before the clouds descended. Are those overweighting UK taking a punt ?

Did you know the UK sucked in more foreign investment into the Tech sector in 2020 than France and Germany combined? The UK ranked third behind only the USA and China in term of total investment. It's estimated that the digital tech sector now employs around 3.1 people in the UK.  Greater than construction 1.9 million and financial services 1.2 million. There's a world of opportunity outside the FTSE. 

Ha, I thought you might come up with an interesting snippet like that. 

Better than the negative mantra that many locals have of their own country!  Not all doom and gloom. Do your own research. There's always opportunities to exploit if you are prepared to do the leg work yourself. Though being a contrarian investor isn't always an easy place to be. 

Prism

Bobziz said:

Thrugelmir said:

Bobziz said:

Thrugelmir said:

Bobziz said:

@Prism that's a fair bit in UK. Consensus seems to be that it represents good value and has been held back by uncertainty. I guess the strengthening pound is also positive unless the companies held earn a fair chunk overseas. What's your reason for overweighting ? Thanks.

When many investors judgement becomes clouded. That's the time to invest. The negative mantra towards the UK over past months simply provided opportunities to invest for the long term. 

Indeed, but I'm interested in the detail behind the 'clouded' bit. Is it market sentiment as a result of uncertainty and associated reduction/stagnation of investment, and if sentiment is now changing is that because the uncertainty has reduced ? Feels like early days in terms of understanding whether the opportunities for growth in FTSE listed companies will improve from where they were before the clouds descended. Are those overweighting UK taking a punt ?

Did you know the UK sucked in more foreign investment into the Tech sector in 2020 than France and Germany combined? The UK ranked third behind only the USA and China in term of total investment. It's estimated that the digital tech sector now employs around 3.1 people in the UK.  Greater than construction 1.9 million and financial services 1.2 million. There's a world of opportunity outside the FTSE. 

Ha, I thought you might come up with an interesting snippet like that. VCT's are a possible route in I guess? We certainly have room to grow with tech representing what 2% of the FTSE.

There is indeed a world outside the FTSE but it is the FTSE that many are now overweighting isn't it ? Following the herd without really knowing why ? 

You will see that my allocation includes a pretty standard large/mid cap fund but also nearly 10% to UK smaller companies and a small chunk in UK private equity which contains a few of those 'tech' names like Wise and Graphcore.

Bobziz

Prism said:

Bobziz said:

Thrugelmir said:

Bobziz said:

Thrugelmir said:

Bobziz said:

@Prism that's a fair bit in UK. Consensus seems to be that it represents good value and has been held back by uncertainty. I guess the strengthening pound is also positive unless the companies held earn a fair chunk overseas. What's your reason for overweighting ? Thanks.

When many investors judgement becomes clouded. That's the time to invest. The negative mantra towards the UK over past months simply provided opportunities to invest for the long term. 

Indeed, but I'm interested in the detail behind the 'clouded' bit. Is it market sentiment as a result of uncertainty and associated reduction/stagnation of investment, and if sentiment is now changing is that because the uncertainty has reduced ? Feels like early days in terms of understanding whether the opportunities for growth in FTSE listed companies will improve from where they were before the clouds descended. Are those overweighting UK taking a punt ?

Did you know the UK sucked in more foreign investment into the Tech sector in 2020 than France and Germany combined? The UK ranked third behind only the USA and China in term of total investment. It's estimated that the digital tech sector now employs around 3.1 people in the UK.  Greater than construction 1.9 million and financial services 1.2 million. There's a world of opportunity outside the FTSE. 

Ha, I thought you might come up with an interesting snippet like that. VCT's are a possible route in I guess? We certainly have room to grow with tech representing what 2% of the FTSE.

There is indeed a world outside the FTSE but it is the FTSE that many are now overweighting isn't it ? Following the herd without really knowing why ? 

You will see that my allocation includes a pretty standard large/mid cap fund but also nearly 10% to UK smaller companies and a small chunk in UK private equity which contains a few of those 'tech' names like Wise and Graphcore.

Thanks, yes I think my region and sector splits are probably quite similar to yours, minus the PE for the time being. I'm similarly overweight in UK for all the reasons mentioned, I guess I'm just wondering whether those reason actually stack up when you dig into them. The same could be said for overweighting any geography factor or cap. I think @JohnWinder has asked the question before about how people select the successful actives. I'm not sure he got a convincing answer..

No criticism of anyone's approach intended.

Linton

New version of Linton Growth:

Artemis Global Select I Acc	11.54
Artemis US Smaller Companies I Acc	11.75
Baillie Gifford EM Mkts Lead Coms B Acc	11.33
Baillie Gifford Japan Small Companies B Acc	6.89
Fidelity European Dynamic Growth W Acc	11.27
Liontrust UK Smaller Companies Inc Cl I	5.34
Matthews Asia Small Coms I Acc	5.01
Polar Capital Global Technology GBP I	8.65
Schroder QEP US Core Acc	17.30
Threadneedle European Smaller Companies Z Acc	10.93

Major reorganisation mainly to diversify Europe by adding a large company fund and SE Asia by adding a small company fund. 

New Version of Linton Wealth Preservation:

Capital Gearing Trust 47.92 Jupiter Strategic Bond I Acc 19.59 Trojan O 9.98 Trojan X 22.50 Main changes were to remove RCP as it was a bit too volatile for the objective, and RIT as it had not performed well enough for several years.

Alexland

Bobziz said:

I'm similarly overweight in UK for all the reasons mentioned, I guess I'm just wondering whether those reason actually stack up when you dig into them.

We only moved to having an extra 10% home allocation around 4 months ago (before that it didn't look very appealing) and it provides some style diversity from our various global trackers which are now so weighted towards US growth stocks. We use Murray Income MUT in our ISAs as it's selective on fairly good quality companies at reasonable prices and the 4% dividend yield helps me sleep at night knowing that our mortgage and some of our bills would be covered if ever we lost our jobs. So having a UK bias isn't just a bet on possible better total return based on current valuations it's also about improving diversification and providing growing income if that matters to you.