Building a portfolio opinion, thanks

Alexland

Audaxer wrote: »

Hi Alex, another option which may be worth you considering could be Baillie Gifford Managed B fund. It is an active multi asset fund with about 73% equities but has a similar performance over the past 5 years to the VLS80. Although it is an active fund it has an OCF of only 0.43% and has a very good record of returns over 30 years.

It might be similar recent performance but it's powered by BG's typical tech heavy growth investment style with Netflix and Tesla in the top 10 equity holdings. My lack of faith in the future performance of that investment style is why I sold Monks a few months ago. That's not really how I want pension money invested. We have plenty in our pensions already so are happy getting our fair share of market returns at low cost.

Alex

Prism

Yanling wrote: »

the reason that I choose more funds is to diversify to different fund companies, sectors, coutries and holdings, and reduce the risk.
Many thanks again

Investing in similar funds doesn't reduce the risk.

Also why do you want to invest in a gold fund?

Audaxer

Yanling wrote: »

Hi Audaxer, Could I ask if you buy a Gold or/and precious metals fund? Thanks !

No, I've not looked at any of these types of funds. I think you can be diversified enough with equity and bonds, with maybe some property fund(s) as well.

bostonerimus

This looks like the classic grab bag of popular active funds and then why not add a few indexes and gold too. Such a portfolio will be difficult and relatively expensive to manage. Put your contribution into a multi-asset fund and maybe add another index fund to tweak your asset allocation and add a couple of active funds if you must, but at your contribution levels I probably wouldn't bother.

ArchBair

Alexland wrote: »

It might be similar recent performance but it's powered by BG's typical tech heavy growth investment style with Netflix and Tesla in the top 10 equity holdings. My lack of faith in the future performance of that investment style is why I sold Monks a few months ago. That's not really how I want pension money invested. We have plenty in our pensions already so are happy getting our fair share of market returns at low cost.

Alex

I totally understand your doubts about the future performance of the investment style employed by Baillie Gifford regarding their tech exposure. However, surely, they must monitor this very closely otherwise practically all of their funds/IT's would suffer badly which would be a disaster for BG.

Also, I think Audaxer mentioned that the BG Managed fund has delivered "a very good record of returns over 30 years" therefore through several downturns/crashes?

Audaxer

ArchBair wrote: »

I totally understand your doubts about the future performance of the investment style employed by Baillie Gifford regarding their tech exposure. However, surely, they must monitor this very closely otherwise practically all of their funds/IT's would suffer badly which would be a disaster for BG.

Also, I think Audaxer mentioned that the BG Managed fund has delivered "a very good record of returns over 30 years" therefore through several downturns/crashes?

I've just had a look at the portfolio breakdowns - BG Managed currently has 17.27% of equity in Technology and VLS80 has 15.03% of equity in Technology, so not that much difference. I agree that as BG is a managed fund I assume it will monitor and adjust it's Technology exposure depending on market conditions or where we are in the economic cycle.

I see that the BG Managed fund's total equities is now showing as 72.6% whereas a few months ago I think it was at nearly 75% equities, so maybe they have reduced their tech exposure recently.

Prism

Audaxer wrote: »

I see that the BG Managed fund's total equities is now showing as 72.6% whereas a few months ago I think it was at nearly 75% equities, so maybe they have reduced their tech exposure recently.

It also depends very much on how they class their holdings. For example on an MCSI basis almost none of Baillie Gifford's top holdings are in tech - they are mostly consumer and communications companies. Morningstar and FTSE use different categories for the same companies

Personally I think of Baillie Gifford funds as cyclical based options for the most part, rather than tech funds

Yanling

Prism wrote: »

Investing in similar funds doesn't reduce the risk.

Also why do you want to invest in a gold fund?

Hi, just thought to diversify the sectors. I will invest with HL provider so the fund dealing is free. thanks

Alexland

Audaxer wrote: »

as BG is a managed fund I assume it will monitor and adjust it's Technology exposure depending on market conditions or where we are in the economic cycle.

Maybe but I don't want to go overweight on the companies they are currently holding and don't know what else they might buy in future so although I still subscribe to the BG emails and videos they are not for me right now.

Alex

StellaN

Alexland wrote: »

It might be similar recent performance but it's powered by BG's typical tech heavy growth investment style with Netflix and Tesla in the top 10 equity holdings. My lack of faith in the future performance of that investment style is why I sold Monks a few months ago. That's not really how I want pension money invested. We have plenty in our pensions already so are happy getting our fair share of market returns at low cost.

Alex

Apart from Baillie Gifford there are a lot of other global funds/IT's and indeed passive world index trackers that are also heavily invested in tech and hold top 10 positions in their holdings.

If the BG investment style was to suffer badly then this would have a massive impact on practically all their funds and IT's across the board and it would surely have a major impact on the whole company.