Mixed Growth and Income Portfolio

Gizmo70

Hi,
I've tried to create myself a diverse, balanced portfolio with a mix of growth and income. The aim is to try and generate around 2-5% dividend income and enough growth that 10-20% can be moved each year into an ISA portfolio. I would say I tend to go for, on average, just above medium risk (around 5 out of 7). I tend to do some reblancing once or twice a year.
Current value is around £100k and split between the following funds:
6% - AXA Framlington Biotech Z Acc
18% - AXA Global High Income Z Gross Inc
28% - Fidelity Global Technology W Acc
8% - JOHCM UK Equity Income Y Inc
11% - FP CRUX European Special Situations I Inc
9% - Schroder Asian Income Z Inc
20% - Vanguard LifeStrategy 80% Equity A Inc

At the moment I have little overlap in terms of stock holdings and my split between regions is 37% Greater Europe, 38% Americas and 25% Asia. Of the stocks held, I know I am fairly heavily into technologies (39%) but I do have 15% in defensive and 30% in cyclical.

Performance over the last 5 years has been reasonable (I know no guarantee as to the future performance) but I do think I might have too much UK (16%) and US (almost 38%) and could do with moving some, 2-5%, into non-US Americas (currently less than 1%) and non-Western Europe (currently less than 1%).

Thoughts? Questions?

TIA

El_Torro

Your portfolio looks OK, not how i’d build it but I wouldn’t say it’s inherently wrong. What I have to say next is based on my own personal bias as much as anything else.

I wouldn’t worry too much about being too heavy in the US, if anything you’re a bit light there. I’d be more concerned about having 37% in Europe. European exposure is important but I have concerns about performance, specifically in the next few years. Without getting too political I have concerns about Euroland’s prospects, and what effect Brexit will have on it.

Being UK based and having 16% exposure to UK isn’t necessarily bad. Everyone’s favourite multi asset fund VLS is 25% so you’ve got less than that. Personally my portfolio has about 10% UK focus and i’m comfortable with that.

Voyager2002

My thoughts:

Asia deserves a higher allocation than you give it: that is where you find most of the world's fastest-growing economies;


I love technology, but it's volatility is above average, so you might care to dial back your tech allocation;



That phrase "non-Western Europe": that would include Russia, which is very different from countries like Hungary that are often lumped together with it. I hold managed funds that are 100 per cent Russia so that the management will keep their eyes on the ball there rather than getting distracted by events in very different economies. Russia offers some fantastic price-earnings ratios, but is high risk and dependent on the oil price.

bostonerimus

You might be onto a winner, only time will tell. I avoid niche funds so your “special situations” and biotech funds etc would not find their way into my portfolio. I spend as little time as possible on find choices and asset allocation and I don’t think most regular investor who develops their own bespoke portfolios will do any better than a multi-asset fund.