Stocks and Shares ISA Advice

neildt

Thanks for the replies. To date I’ve invested equally in the following two funds :

Lindsell Traing Global Equity
Legal and General US Index

Current return is around 8%. My concern currently is they are to much weighted to the US. The weights

United States 63%
United Kingdom 14%
Japan 10.5%
Netherlands 6%

Should I be concerned? I plan on holding these investments and adding to them for 10 years plus.

MK62

I would be - a little anyway - but I think you've answered your own question really.

If staying with passive equity only funds to complement your active equity only LT fund, you could consider replacing the US Index fund with something like Vanguard Global All Cap Index - it would cut your US exposure to around 35% overall.....it also gives you some exposure to mid-cap and smaller companies, and with over 5000 holdings, is pretty well diversified.

If you'd like something with a little more UK bias, you could look at the Vanguard Life Strategy series (VLS100 is 100% equity, VLS80 is 80% equity/20% bonds.....and so on). They are each a fund made up of other Vanguard funds (a fund of funds).

Vanguard aren't the only game in town though.....your current fund house L&G also do global multi-index funds, as do a host of other fund management companies....with varying allocation levels to the various markets/sectors etc, depending on your requirements/preferences.

neildt

I've added Fundsmith Equity to my portfolio, and whilst I'm still heavily weighted to the US, the majority of these companies provide global services/products. Apart from Vanguard Global All Cap Index, what other alternatives can anyone recommend to give me less weight to US.

MaxiRobriguez

neildt wrote: »

I've added Fundsmith Equity to my portfolio, and whilst I'm still heavily weighted to the US, the majority of these companies provide global services/products. Apart from Vanguard Global All Cap Index, what other alternatives can anyone recommend to give me less weight to US.

I think you need to decide on what you want to invest in and then find an investment to suit rather than the other way around.

An global equity tracker is a decent solution because it's properly diversified and requires no management on your behalf in terms of rebalancing. All global equity trackers will perform roughly the same so for me it would be finding the one that reduces platform/fund costs.

What I would suggest is that your 60% US allocation is likely to bite at some point. This 60% itself will be concentrated in the likes of apple, amazon, facebook which are starting to dominate the US equity market. These companies are at high downside risk of both an escalation in trade war and your run of the mill recession too. But 60% focused in one area is too much regardless.

neildt

Further to the above posts, I'm looking to rebalance my current holdings. I was considering just equities, for example, adding Vanguard Global All Cap Index, and reducing my holdings in the Legal and General US Index.

Currently, I don't have any exposure to Bonds. Is this something I should add, considering I'm looking to invest in equities for 10 years plus.

And if I were to invest in Bonds would ARTEMIS HIGH INCOME CLASS I - MONTHLY INCOME (GBP) be a good addition.

coyrls

[FONT=&quot]I’m not sure why you ignored the advice of the majority of people on this thread to invest in a single multi-asset fund. You are predictably now hitting the asset allocation and rebalancing issues that would have been avoided if you had followed the original advice.[/FONT]

Sailtheworld

neildt wrote: »

Am mid 30s. Currently the £5k I have is in a cash ISA and is returning hardly nothing.

That's to be expected because you're taking no risk. Your real return will therefore be around zero.

neildt wrote: »

I was looking to just invest in managed trackers.

Why not VWRL? A passive tracker with charges of 0.25% with around 3200 component stocks covering the whole World.

neildt wrote: »

What sort of returns can I expect.?

If you buy VWRL and reinvest the dividends and report back in 40 years you might make 3 - 5% ahead of inflation each year.

Sailtheworld

neildt wrote: »

And if I were to invest in Bonds would ARTEMIS HIGH INCOME CLASS I - MONTHLY INCOME (GBP) be a good addition.

If you're thinking of bonds as minimal risk in your base currency then this doesn't fit the bill. There's a currency risk as >50% is in US bonds and a stockmarket risk because 6% is in shares.

You'll pay at least 0.5% in charges too.