Suggestions for core-holding funds?

RomfordNavy

bowlhead99 wrote: »

When you say, "on that basis", do you mean on the basis that you looked at the list of relatively cautious funds from one poster and those two had roughly the highest returns over a one year period to this weekend?

You did see that the person who mentioned the funds urged you not to take a year in isolation

On a separate note, you mentioned in three separate posts now there are certain funds unavailable through IWeb (Lindsell Train, CG Absolute Return and Troy Trojan) and in one of the posts you said it was unfortunate because you quite liked one of them. But you had opened the thread by saying your £100k was currently in a cash ISA, rather than IWeb. So there's no particular reason why you need to move the money to IWeb and then be denied access to the funds you like.

The standard approach to building an investment portfolio should be to decide what holdings you want to use to meet your objectives and then see where/how is the most efficient place to buy those holdings. Picking a platform that doesn't offer things you want is maybe not the best way to go, even though it's undoubtedly a cheap platform.

Perhaps I should have explained, forms have already been sent to move cash ISA to iWeb.

RomfordNavy

So what period of history is suggested to look at, 5 yrs, 10 yrs?

I could be wrong but my thoughts are if we look back too far we will be looking at a very different interest rate background so might not be relevant to todays environment. Maybe using the past five years data might be a reasonable comprimise.

bowlhead99

RomfordNavy wrote: »

Perhaps I should have explained, forms have already been sent to move cash ISA to iWeb.

Sure, but once the money lands at IWeb there is no reason you couldn't pick a different provider, and fill out their forms so that they obtain the money from IWeb in the same way that IWeb got the money from your cash ISA provider.

The point is that investment opportunities don't need to be rejected just because IWeb doesn't carry them, because there is no gun at your head forcing Ieb to be used for all or any of your portfolio.

bowlhead99

RomfordNavy wrote: »

So what period of history is suggested to look at, 5 yrs, 10 yrs?

I could be wrong but my thoughts are if we look back too far we will be looking at a very different interest rate background so might not be relevant to todays environment. Maybe using the past five years data might be a reasonable comprimise.

The last big global crash (almost 60% drawdown from peak to trough on the FTSE World index -total returns on US dollar basis) happened from late 2007 to early 2009. Since 2009 when QE kicked in and the recovery started, the debt and equity markets have been broadly positive, but with some pull backs, drops or corrections in different markets here or there (eg in late 2011, various parts of 2018), I won't list them all.

So the last 5 years are not fully representative of a whole economic cycle. Unfortunately neither is the last 10 years because it starts a couple of weeks after the equity markets hit rock bottom and the upswing began. So really 12 years is better. 20 even better because then you include the 1999 to 2003 slump.

You are right that going a decade or so back, the interest rate environment was different from today. But from that, you can understand that the interest rate environment can change, and it WILL change again at some point. So, looking at the last one year or last five years during which global interest rates sat at pretty much the lowest rates of the last few hundred years, and boosted asset prices due to availability of cheap credit, is not really a 'reasonable compromise'.

At the moment the current environment is that the rates are low (despite a few upticks in the US, though US was boosted with a one off positive impact of tax rate falls). So picking the last five years, during which rates were low and stayed low (negative base rates in some countries), does not really prepare you for market falls created by rising rates, ie as we move to a position where rates stop being low.

RomfordNavy

bowlhead99 wrote: »

Sure, but once the money lands at IWeb there is no reason you couldn't pick a different provider, and fill out their forms so that they obtain the money from IWeb in the same way that IWeb got the money from your cash ISA provider.

The point is that investment opportunities don't need to be rejected just because IWeb doesn't carry them, because there is no gun at your head forcing Ieb to be used for all or any of your portfolio.

Fair point. Just not sure if they will charge for transfering part of an ISA but hopefully not as it is only cash transfer not funds.

RomfordNavy

Here the suggested funds showing 1, 3 & 5 years, unfortunately I can't find valuations going back twenty years:


Personal Assets Trust (PNL) 4.10% 10.33% 21.16%
Troy Trojan (Class X) Class X - Accumulation 4.33% 12.93% 29.64%
CG Absolute Return 7.53%
Capital Gearing Trust (CGT) 7.79% 20.29% 22.96%
Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) -5.08% 6.44% 2.14%
MI Hawksmoor Vanbrugh B Acc (Accumulation) 2.23% 23.39% 34.24%
MI Hawksmoor Distribution B Inc (Income) 4.21% 29.68% 42.61%

Troy Income & Growth Trust (TIGT) 7.48% 9.34% 25.40%

seacaitch

RomfordNavy wrote: »

Fair point. Just not sure if they will charge for transfering part of an ISA but hopefully not as it is only cash transfer not funds.

IWeb permit partial ISA transfers-out of cash holdings and you'll not be charged.

Thrugelmir

RomfordNavy wrote: »

So what period of history is suggested to look at, 5 yrs, 10 yrs?

I could be wrong but my thoughts are if we look back too far we will be looking at a very different interest rate background so might not be relevant to todays environment. Maybe using the past five years data might be a reasonable comprimise.

Whatever you choose to invest in. Only with hindsight will you be able to determine if it was the right decision. By investing in the broadest range of index tracker available. You'll achieve an average return.

Perhaps once you've built a sizable portfolio. You'll be more comfortable with investments that offer greater potential upside, however could well disappoint and end up underperforming.

Alexland

Thrugelmir wrote: »

By investing in the broadest range of index tracker available. You'll achieve an average return.

Or perhaps do better than average if keeping your fees lower than average.

Alex

aubergine99

RomfordNavy: There are some Lindsell Train funds available on iWeb.