Defensive Global IT's/funds

Sally57

rathernot wrote: »

Hmm yes but I'm not sure I'd take "some bonds, property and a wealth preservation IT outside my core holding as well as a small percentage in a few more aggressive funds such as Healthcare/Biotech and Tech." as going into detail of what that 70% is.

Fundsmith or Lindsell Train are fine choices. The other 70% may not be so may be worth discussing was what I was getting at.

I've decided to have only 20% as my main holding in the SIPP and have selected Foreign & Colonial Investment Trust. The remaining 80% I am looking at the following:-

Scottish Mortgage (SMT) - 10%
Jupiter European Opps (JEO) - 10%
Schroder Asia Pacific (SDP) - 10%
TR Property (TRY) - 10%
Capital Gearing (CGT) - 10%
Allianz Technology (ATT) - 5%
Worldwide Healthcare (WWH) - 5%
Henderson Smaller Companies (HSL) - 5%
JPMorgan US Smaller Companies (JUSC) - 5%
JPMorgan Euopean Smaller Companies (JESC) - 5%
Baillie Gifford Shin Nippon (BGS) - 5%

The reason I am light on the bond/property element with Capital Gearing & TR Property is because I have a adequate amount in cash in the best interest accounts/RS's as a fallback in case of a downturn/crash.

atush

I like F&C, been saving monthly into it for a couple of decades now.

Will be in our DD portfolio too, esp once we stop contibuting monthly.

MPN

Sally57 wrote: »

I've decided to have only 20% as my main holding in the SIPP and have selected Foreign & Colonial Investment Trust. The remaining 80% I am looking at the following:-

Scottish Mortgage (SMT) - 10%
Jupiter European Opps (JEO) - 10%
Schroder Asia Pacific (SDP) - 10%
TR Property (TRY) - 10%
Capital Gearing (CGT) - 10%
Allianz Technology (ATT) - 5%
Worldwide Healthcare (WWH) - 5%
Henderson Smaller Companies (HSL) - 5%
JPMorgan US Smaller Companies (JUSC) - 5%
JPMorgan Euopean Smaller Companies (JESC) - 5%
Baillie Gifford Shin Nippon (BGS) - 5%

The reason I am light on the bond/property element with Capital Gearing & TR Property is because I have a adequate amount in cash in the best interest accounts/RS's as a fallback in case of a downturn/crash.

Interesting choice for a SIPP portfolio as it is high on the risk scale. I personally would be tempted to add more into CGT at the expense of ATT and WWH, mainly because you have tech and healthcare covered in some of the other IT's such as SMT and FRCL.

Sally57

MPN wrote: »

Interesting choice for a SIPP portfolio as it is high on the risk scale. I personally would be tempted to add more into CGT at the expense of ATT and WWH, mainly because you have tech and healthcare covered in some of the other IT's such as SMT and FRCL.

Thanks for your opinion. I suppose it will also lower the risk slightly, so I will think about adding more into CGT at the expense of the more aggressive growth funds you highlighted.

ArchBair

Sally57 wrote: »

I've decided to have only 20% as my main holding in the SIPP and have selected Foreign & Colonial Investment Trust. The remaining 80% I am looking at the following:-

Scottish Mortgage (SMT) - 10%
Jupiter European Opps (JEO) - 10%
Schroder Asia Pacific (SDP) - 10%
TR Property (TRY) - 10%
Capital Gearing (CGT) - 10%
Allianz Technology (ATT) - 5%
Worldwide Healthcare (WWH) - 5%
Henderson Smaller Companies (HSL) - 5%
JPMorgan US Smaller Companies (JUSC) - 5%
JPMorgan Euopean Smaller Companies (JESC) - 5%
Baillie Gifford Shin Nippon (BGS) - 5%

The reason I am light on the bond/property element with Capital Gearing & TR Property is because I have a adequate amount in cash in the best interest accounts/RS's as a fallback in case of a downturn/crash.

Any particular reason you have decided on all IT's for your SIPP portfolio?

A_T

Sally57 wrote: »

The reason I am light on the bond/property element with Capital Gearing & TR Property is because I have a adequate amount in cash in the best interest accounts/RS's as a fallback in case of a downturn/crash.

What makes you think a property IT will help defend against an equity crash?

ColdIron

I don't think that's what Sally said, the defence would appear to be cash. Having said that there are good reasons to hold property within an IT rather than a fund

A_T

ColdIron wrote: »

I don't think that's what Sally said, the defence would appear to be cash. Having said that there are good reasons to hold property within an IT rather than a fund

The statement quoted says that the portfolio is light on "bonds/property" because of the cash held - clearly implying that property is seen as a defensive asset like bonds (or cash). Otherwise why would bonds/property be grouped together like that?

StellaN

Sally57 wrote: »

I've decided to have only 20% as my main holding in the SIPP and have selected Foreign & Colonial Investment Trust. The remaining 80% I am looking at the following:-

Scottish Mortgage (SMT) - 10%
Jupiter European Opps (JEO) - 10%
Schroder Asia Pacific (SDP) - 10%
TR Property (TRY) - 10%
Capital Gearing (CGT) - 10%
Allianz Technology (ATT) - 5%
Worldwide Healthcare (WWH) - 5%
Henderson Smaller Companies (HSL) - 5%
JPMorgan US Smaller Companies (JUSC) - 5%
JPMorgan Euopean Smaller Companies (JESC) - 5%
Baillie Gifford Shin Nippon (BGS) - 5%

The reason I am light on the bond/property element with Capital Gearing & TR Property is because I have a adequate amount in cash in the best interest accounts/RS's as a fallback in case of a downturn/crash.

I'm certainly no expert but I do hold some of these IT's, so the portfolio looks fine if you're happy with the high risk with your cash as your defence.

Reluctantpensioner

You said you were looking for a "core holding".
I'm not remotely an expert: but you might be interested in the opinion of some who are respected... The morningstar analyst reports on the funds you mention. Specifically the "role in portfolio" section:

Lindsell Train Global Equity Fund:
The highly concentrated nature of the portfolio, combined with its structural active sector positions, make this fund most suitable as a supporting player.

Fundsmith Equity I:
Core. The fund is suitable for investors seeking a low-beta approach to global equity investing.

FRCL:
Core. The fund offers a well-diversified portfolio comprising predominantly quoted global equities with an element of private equity exposure. The fund is suitable as a core building block for portfolios and has demonstrated steady outperformance with lower risk. Modestly geared, it would be a good choice for a first-time investor seeking long-term global equity exposure.

MWY:
Satellite. The trust offers investors a relatively concentrated global portfolio, structured without heed of the benchmark, with the aim of capturing structural growth in global thematic trends such as the emerging-markets consumer or retiree spending power.

SMT:
Supporting. Whilst the fund nominally provides exposure to global equities, investors should be cognisant that the highly active nature of the management, the inclusion of unlisted investments, structural gearing, and a relatively concentrated portfolio are likely to lead to a bumpy ride at times. Investors should consider this a long-term investment and part of a wider diversified portfolio.

I have a few of these in my portfolio, but I don't generally treat them as core.