Fidelity index world

TheShape

Currently my S&S ISA with Cavendish Online contains 3 funds:

Blackrock Consensus 100
HSBC Global Strategy Dynamic
Vanguard Lifestrategy 100

At the time I opened this S&S ISA I couldn't decide between the numerous funds on offer. Like many novice investors I didn't have an answer to the 'do you want the UK bias of VLS?' or 'do you want the Corporate Bond component of HSBC Strategy Dynamic?' Tbh, I still don't.

I did make a conscious decision to go high on equity proportions and I'm prepared for high levels of volatility.

I am thinking of switching the three funds to Fidelity Index World.

I'm thinking that the main differences (compared to my current portfolio) will be a higher proportion of equities than currently and a greater proportion allocated to the US and far lower to the UK. I understand the fund mirrors fairly closely the relative sizes of world developed markets. The fund also comes with a lower OCF than either of the current funds.

Anything that I should be considering before deciding whether to switch?

Edit: I have no current specific goals for the funds. They may well remain invested until retirement (currently age 40).

fun4everyone

Fidelity Index World does not have an emerging market allocation. VLS100 definitely does have.

If you switch to FIW you therefore might want to consider an emerging or small cap fund on the side. Can go passive or active for either.

A_T

Your HSBC fund has some bonds so you'll be missing out on those. But as you're already 95% equities it will make little difference.

Fidelity Index World has no emerging markets so you may want to consider HSBC FTSE All-World Index fund instead.

TheShape

fun4everyone wrote: »

Fidelity Index World does not have an emerging market allocation. VLS100 definitely does have.

If you switch to FIW you therefore might want to consider an emerging or small cap fund on the side. Can go passive or active for either.

A_T wrote: »

Your HSBC fund has some bonds so you'll be missing out on those. But as you're already 95% equities it will make little difference.

Fidelity Index World has no emerging markets so you may want to consider HSBC FTSE All-World Index fund instead.

The HSBC FTSE All-World Index fund looks like it might suit. There's an advantage in using the one fund.

Any ideas for a emerging market fund. Fidelity Index Emerging Markets, Baillie Gifford Emerging Markets?

Edit: EM fund would be to complement Fidelity Index World.

Alexland

I don't see why you would want to overweight EM by adding a dedicated fund? If you want 100% global passive equities then the HSBC FTSE All World fund already contains EM in the 'correct' proportions and is usually (assuming no discounts) a lower cost than using the mixed asset fund series.

Now if the additional scope of the HSBC fund will deliver enough additional return to justify the fee difference against the Fidelity fund is another question which I cannot answer...

Alex

TheShape

Alexland wrote: »

I don't see why you would want to overweight EM by adding a dedicated fund? If you want 100% global passive equities then the HSBC FTSE All World fund already contains EM in the 'correct' proportions and is usually (assuming no discounts) a lower cost than using the mixed asset fund series.

Now if the additional scope of the HSBC fund will deliver enough additional return to justify the fee difference against the Fidelity fund is another question which I cannot answer...

Alex

Hi Alex

My previous post wasn't clear.

Options under consideration would be:

HSBC FTSE All World (0.18% OCF)or,

Fidelity Index World (0.13% OCF) plus EM fund.

fun4everyone

TheShape wrote: »

Any ideas for a emerging market fund. Fidelity Index Emerging Markets, Baillie Gifford Emerging Markets?

"Emerging Markets" is such a massive wide net it's near impossible to recommend an active fund as they can all be useful, specialising in areas it's tough to simply track. It depends what you are looking for in your portfolio. You could focus on small companies in emerging markets for example, or perhaps specific regions in Asia.

The way VLS does it I believe is just to track the MSCI Emerging Markets index which will give you large cap coverage of whatever countries MSCI see fit to include. As you already said if you want to carry on with this cheap and non complex way of doing things both Vanguard and Fidelity make passive funds that track this index.

As for active funds, for a similar sort of theme, global largecap EM exposure, you could look at Fidelity Emerging Markets or Artemis Global Emerging Markets. If you are going to go active though you have a wealth of options passive won't give you.

Alexland

TheShape wrote: »

HSBC FTSE All World (0.18% OCF)or,

Fidelity Index World (0.13% OCF) plus EM fund.

Personally I wouldn't bother with a passive EM fund and would go with the HSBC fund to include general EM exposure. If you feel that an active EM manager can add value (e.g. focusing on the growing consumer in India, etc) then sure go for Fidelity with an active EM fund.

Alex

Mr.Saver

A_T wrote: »

Your HSBC fund has some bonds so you'll be missing out on those. But as you're already 95% equities it will make little difference.

Fidelity Index World has no emerging markets so you may want to consider HSBC FTSE All-World Index fund instead.

I guess this doesn't matter, but I'm curious about how do you know the OP has 95% equities when the post only said the name of the 3 funds without mentioning allocation between them.:D