One more IT for this years ISA...

MonroeM

Is it just me, but do most threads always seem to relate to funds such as Fundsmith, Lindsell Train or VLS funds! With regards to an additional IT then Europe or Asia as Linton said would be the best way forward whether it is smaller companies or not.

Voyager2002

If you have to pay dealing costs then it is not really worth it for less than about 5,000, so I would wait until 6 April. And you might consider 'Green' energy: ITs such as TRIG and Greencare show low volatility with a yield of around 5 per cent.

rathernot

Linton wrote: »

Having entered your portfolio in Morningstar Xray.....
1) You are seriously underweight in Europe and Asia Pacific (ex Japan)
2) You could do with more "Industrials"

Fidelity Asian Values and Jupiter European Opportunities would help fill the gaps - perhaps split 50/50

3) Your Japanese % is very high as Lindsell Train is 20% Japan. Suggest you cut back a bit on Shin Nippon and add it to the 12.5% split between Europe and AsiaPac.

Another area you could expand is small companies - your portfolio is a rather focussed on large companies. Fidelity Asian Values will help a bit. You could consider a European Smaller Companies fund, perhaps TR European Growth Trust instead of JEO.

Yes fair points in terms of region, of course Terry Smith and Nick Train have their style of investment which I like probably just because it sounds sensible.

Shin Nippon was essentially a bit of fun and next year I may continue or it may just stay as a smaller part of things.

rathernot

Voyager2002 wrote: »

If you have to pay dealing costs then it is not really worth it for less than about 5,000, so I would wait until 6 April. And you might consider 'Green' energy: ITs such as TRIG and Greencare show low volatility with a yield of around 5 per cent.

That's one option, though it's a fiver so not going to get too hung up on it but equally I'm not going to go buying 3 funds as I'd prefer to keep things reasonably neat.

rathernot

MPN wrote: »

It's an interesting mix of high conviction global funds in Fundsmith and LTGE. Then you would have to have paid quite a premium to buy RIT and Shin Nippon this year but going back to your question then I would second either a UK Smaller Companies IT such as Blackrock or Jupiter European Opps IT.

"High conviction" is fair

This isn't my life savings, it's a start of what will be a long term endeavour so as much as I'd love to get it right first time, the money is in there for a while so it's not a big deal if it's a bit of a roller coaster.

Before posting this thread I was drawn to SMT but I do also keep thinking "Global small companies" just because I don't like being biased to the UK simply because I live here.

bowlhead99

Voyager2002 wrote: »

If you have to pay dealing costs then it is not really worth it for less than about 5,000, so I would wait until 6 April.

Let's say the expected return over the long term of a 100% equities investment trust is 5% in excess of the return on cash.

So the added value of investing £2500 a month early is £2500 x 5% X 1/12 is £10.42

You could argue with the assumption of cash+5% but there's more than a month until 6 April so the implied return on investment now rather than keeping it as cash until you can roll it into a deal with something else from next year's ISA allowance is comfortably £15+, more than a typical dealing fee. No compelling reason to hold off. Even splitting the money into two holdings is not going to break the bank.

Where would your final 12.5% go?

As to investment choices:

Harbourvest Global Private Equity HVPE: good generalist international exposure to investments which aren't on the public markets

Scottish Oriental Investment Trust SST: helps to fix the current underweight in Asia ex Japan, fits with appetite for smaller companies, current discount level is not unreasonable

Both are completely different types of funds so just split the money between the two, or do one now and one in next tax year.

forextc wrote: »

I'd go for Personal Assets Trust. A recommendation definitely not made on past performance.

That doesn't make any sense. Their track record of past performance is the only reason to hold it. I hold it.

rathernot wrote: »

Before posting this thread I was drawn to SMT

A decent fund too. But you probably don't need that and two other global public equities funds like LT and Fundsmith. It's holdings are somewhat different to either of them and it is another high conviction one. If you pick it up, perhaps you could drop one of the other two, IMHO.

economic

You mention you have plenty of cash in reserves to fill future years as and when new tax year begins.

Any reason to wait before investing your cash reserves for the new tax year? Seems like you will be spreading it out over a long period which will likely seriously have an impact on your returns in a negative way.

You can always invest over and above isa allowances in a normal investment account, and when each new tax year begins you can "bed" the amount in your normal investment account into your ISA upto the allowance.

Audaxer

economic wrote: »

Any reason to wait before investing your cash reserves for the new tax year? Seems like you will be spreading it out over a long period which will likely seriously have an impact on your returns in a negative way.

It could have a impact on returns in a negative way, but it could also have a positive impact if there is a bigger correction of at least 30% within the next few years, as seems quite possible. For someone investing in a 100% equity portfolio, investing a lump sum each tax year to fill their ISA allowance doesn't seem to me such a bad plan.

rathernot

MonroeM wrote: »

Is it just me, but do most threads always seem to relate to funds such as Fundsmith, Lindsell Train or VLS funds! With regards to an additional IT then Europe or Asia as Linton said would be the best way forward whether it is smaller companies or not.

They do but I can understand why.

VLS is a simple option if you just want to assign risk a percentage I guess.

Fundsmith and LT make sense to me personally whilst I guess some people will "get" the AA and give their money to Chris Woodford.

rathernot

economic wrote: »

Any reason to wait before investing your cash reserves for the new tax year? Seems like you will be spreading it out over a long period which will likely seriously have an impact on your returns in a negative way.

Candidly because it makes me think and smooths the journey out in my view.

Sticking 12.5% of this years allowance in Shin Nippon isn't something I need to give too much thought.

Doing the same with 12.5% of what I have in reserve would be a big deal and then I'd be spending my life agonising over allocation percentages.

So it's a psychological thing I guess