Please help narrow down these funds

MrMicawber_2

I am interested in the comment 'attitude to risk is appalling'. Conventionally yes, but for someone drip feeding money in for a very long period the attraction of emerging markets and resources of one kind or another is pretty attrative. I am just wondering whether we are looking at a pivotal moment where the old rule book gets thrown away for someone investing in this position. Just to clarify my own position I am a lot more risk averse and while I have a bit of some of the funds mentioned above I still like good old fashioned UK Equity Income for example as a core part of a portfolio.

Interstingly no-one has mentioned Invesco Perpetual Hong Kong and China. This seems to be a much unloved fund which nonetheless has a long term manager and has performed more than solidly.

wombat42_2

MrMicawber wrote: »

I am interested in the comment 'attitude to risk is appalling'. Conventionally yes, but for someone drip feeding money in for a very long period the attraction of emerging markets and resources of one kind or another is pretty attrative. I am just wondering whether we are looking at a pivotal moment where the old rule book gets thrown away for someone investing in this position. Just to clarify my own position I am a lot more risk averse and while I have a bit of some of the funds mentioned above I still like good old fashioned UK Equity Income for example as a core part of a portfolio.

Interstingly no-one has mentioned Invesco Perpetual Hong Kong and China. This seems to be a much unloved fund which nonetheless has a long term manager and has performed more than solidly.

Invesco Perpetual Hong Kong and China is a pretty hot performer (although it is difficullt for any HK and China fund not to be). Its just that of late it is a tad behind Jupiter China, Gartmore China, Threadneedle China, Neoptune China and First State China.

It is possible that China will double again every year for the next 10 years - opinions are sharply divided, China and other emerging markets could still be the best place to invest but the jury is out and some say the best is over.

mr_fishbulb

ramagel wrote: »

However I have it on good authority that they were all bought as lumpsum investments on the dates noted with amounts varying from £540 to the whole £7k x 2 (the latter being after egamar had received advice from TQ on the need to rebalance his portfolio). There have been a few switches, he tells me which obscures the issue a little, but all in all he is a very happy bunny.

Cheers for the reply

I think I'm going to have to go with a combination of drip feeding some funds, with lump sums on others to balance it out as I go.

ramagel

mr_fishbulb wrote: »

Cheers for the reply

I think I'm going to have to go with a combination of drip feeding some funds, with lump sums on others to balance it out as I go.

Diversification is almost as important as 'fund picking' I reckon.

[Deleted User]

But with 150 a month to invest you can only pick 3 sectors, which OP has done. They look like good sectors to me and I wouldnt recommend diversifying into things like property or bonds, which will fall as its obvious that investors have been pulling the plug, which drops the value and the story becomes self perpetuating, such is the fear aspects to markets. Bonds also have very bad returns at the mo.

mr_fishbulb

Is this a better mix? The percentages are weightings I want to aim for, but starting off it will be pretty much an even split, topping up with lump sums as I go:

Invesco Perpetual High Income Inc (30%)
Merrill Lynch UK Smaller Companies Inc (25%)
M & G Global Basics Class X Accumulation Units (25%)
Allianz RCM BRIC Stars A Accumulation (10%)
JPMorgan Natural Resources Accumulation Units (10%)

BTW If anyone hasn't used it, the morningstar portfolio and X-Ray tools are invaluable for this sort of thing.

ramagel

mr_fishbulb wrote: »

Invesco Perpetual High Income Inc (30%)

Had it, dumped it, never did a thing for me. What are the dividends likley to be from it's constituents going forwards? With banks' share prices having taken a tumble recently but maybe with small-ish write-offs and revenues buoyant they will indeed provide a good income. Lots of things influence this fund - too complicated for my poor old brain. If it's not anywhere near recent highs it might be a good buy. Someone who knows what they are talking about might comment further about this fund.

mr_fishbulb wrote: »

Merrill Lynch UK Smaller Companies Inc (25%)

Small co's have had it a bit rough recently, and if a credit squeeze reduces consumer spending plus any knock-on to larger companies on whom smaller ones depend, there may be bad news ahead. Have you compared this fund to the UBS version and the straightforward Schroeder mid 250? If you have and you think it's a better buy for what's coming along (rather from what's been and gone) then why not ... unless it's at or close to its highs ....

mr_fishbulb wrote: »

M & G Global Basics Class X Accumulation Units (25%)

Always liked this one: but is this a good time to be buying big chunks of it? I'd be holding back any big buys for a while (springtime) to see where it's going - hopefully down some, and then up! Gotta be a good long term investment .... and definately worth the odd hundred here and there until the right time comes around for a big buy (always last week, in my experience!)

mr_fishbulb wrote: »

Allianz RCM BRIC Stars A Accumulation (10%)

Not a clue!

mr_fishbulb wrote: »

JPMorgan Natural Resources Accumulation Units (10%)

Same comments as the M&G Global Basics, really. Definitely one for hundreds now and agaion but I'd hang back if I were looking to put a few thousand into it.

Generally, you seem to have become a little more cautious in recent days, Mr Fishbulb - just 10% in JPMNR and that "Invesco Perpetual High Income Inc" fund really isn't going to set the pulse racing you know!

dunstonh

BTW If anyone hasn't used it, the morningstar portfolio and X-Ray tools are invaluable for this sort of thing.

When used with caution remembering that the data is often out of date and limited. That was one of the main reasons I didnt pay for morningstar and went with financial express instead. FE were more expensive as well. Morningstar did have good support though and the people were nice and as a freebie for consumers, you cannot complain.

purch

From:
JPMorgan Natural Resources; or
BlackRock Merrill Lynch Gold & General
CF Eclectica Agriculture A; or
First State Global Listed Infrastructure (very new fund)
Allianz RCM BRIC Stars A; or
Aberdeen Emerging Markets

To:
Invesco Perpetual High Income Inc
Merrill Lynch UK Smaller Companies Inc
M & G Global Basics Class X Accumulation Units
Allianz RCM BRIC Stars A Accumulation
JPMorgan Natural Resources Accumulation Units

In less than a month :eek:

I'd keep Gold and General in the mix ( Gold will be $2000 oz and rising soon )and forget either Global Basics or Natural Resources

Gotta think you could get exposure to UK equity with better funds than those

mr_fishbulb

ramagel wrote: »

Schroeder mid 250?

Good tip. Looks fairly consistant with its returns.