Funds investment advice

OldBill

lionel_hutz wrote: »

Those videos where very useful, to the point where I think I’ll downgrade the risk I was prepared to take and go for a global indexed fund. Considering vanguards FTSE global index fund as
charges seem decent at 0.24% alongside a decent return.

The videos are excellent - it's just finding the right fund that really matches what Kroijer recommends that is tricky.

None of the funds that I have researched so far really "mirror" his global equity picture.

And as for bonds, the best advice at the moment is that the UK gilts he recommends as being the best choice as are, in fact, a bad choice due to low interest rates, and that therefore an investor would be better off keeping his cash in a savings account!

lionel_hutz

OldBill wrote: »

The videos are excellent - it's just finding the right fund that really matches what Kroijer recommends that is tricky.

None of the funds that I have researched so far really "mirror" his global equity picture.

I agree there’s no IDEAL fund. But taking a global picture view seems best. As the previous poster put there could be a huge global crash at any point in time, but if this where to happen then I believe any sort of fund (or similar) wouldn’t be able to escape it.
I’m going to get the vanguard fund via the iWeb platform as it doesnt eat into it as much with high costs.

OldBill

lionel_hutz wrote: »

I agree there’s no IDEAL fund. But taking a global picture view seems best. As the previous poster put there could be a huge global crash at any point in time, but if this where to happen then I believe any sort of fund (or similar) wouldn’t be able to escape it.
I’m going to get the vanguard fund via the iWeb platform as it doesnt eat into it as much with high costs.

I agree that there is no IDEAL fund. The problem I am finding is that, whatever the equities proportion of the multi-asset funds is, the UK is way over-represented - 20-25%, whereas the figure should surely be nearer 5%, certainly no more than 10%.

There seems to be an inbuilt disposition by whoever designs these funds for UK investors to buy to over-egg the UK equity pudding. And that does little justice to the claim that the fund is in any way - not just ideally - accurately "global".

I'm not asking for perfection - just a wee bit more accuracy. Is this too much to ask?

Prism

OldBill wrote: »

I agree that there is no IDEAL fund. The problem I am finding is that, whatever the equities proportion of the multi-asset funds is, the UK is way over-represented - 20-25%, whereas the figure should surely be nearer 5%, certainly no more than 10%.

There seems to be an inbuilt disposition by whoever designs these funds for UK investors to buy to over-egg the UK equity pudding. And that does little justice to the claim that the fund is in any way - not just ideally - accurately "global".

I'm not asking for perfection - just a wee bit more accuracy. Is this too much to ask?

Those funds are global as the FTSE 100 is very global itself. Its just that they emphasize UK sectors like finance and oil, over lets say tech. For a 100% equities fund there is plenty of choice to represent the world market. For multi asset funds you just need to be more selective - e.g HSBC Global Strategy or similar

[Deleted User]

OldBill wrote: »

The videos are excellent - it's just finding the right fund that really matches what Kroijer recommends that is tricky.

None of the funds that I have researched so far really "mirror" his global equity picture.

And as for bonds, the best advice at the moment is that the UK gilts he recommends as being the best choice as are, in fact, a bad choice due to low interest rates, and that therefore an investor would be better off keeping his cash in a savings account!

There is a very good candidate to meet Lars criteria - FTSE All-World. It's being offered by Vanguard and HSBC. HSBC has cheaper OCF than Vanguard's and it's available on iWeb.

OldBill

pioruns wrote: »

There is a very good candidate to meet Lars criteria - FTSE All-World. It's being offered by Vanguard and HSBC. HSBC has cheaper OCF than Vanguard's and it's available on iWeb.

Yes, the Vanguard All World is one I'm looking at, though their Global All-Cap is even more diversified (~6,000 as opposed to ~3,000 companies).

AnotherJoe

OldBill wrote: »

Yes, the Vanguard All World is one I'm looking at, though their Global All-Cap is even more diversified (~6,000 as opposed to ~3,000 companies).

That's what I thought but Look at the performance of the two and they are near identical

[Deleted User]

Vanguard fund is based on FTSE Global All Cap Index, and HSBC fund is based on FTSE All-World Index.
Factsheets of the underlying benchmarks are here: https://www.ftse.com/products/indices/geis-series
I recommend to read and compare:) Very similar composition, very similar results. Vanguard's and HSBC funds are behaving as expected, mirroring underlying indexes. HSBC fund holds fewer stocks, has lower OCF and slightly higher returns. Vanguard has more constituents and slightly lower return over the years, while you pay a fraction more in OCF.

But you can generally chose whatever you prefer or what is available on your platform, they are nearly identical, especially if one plans to use Vanguard's platform to monthly deposit small sum, this would work better.
I use iWeb, I don't want frequent transactions, I went ahead with HSBC fund, did lump sum to ISA to use up my annual allowance, and I am all done for a year.

A_T

OldBill wrote: »

I agree that there is no IDEAL fund. The problem I am finding is that, whatever the equities proportion of the multi-asset funds is, the UK is way over-represented - 20-25%, whereas the figure should surely be nearer 5%, certainly no more than 10%.

There seems to be an inbuilt disposition by whoever designs these funds for UK investors to buy to over-egg the UK equity pudding. And that does little justice to the claim that the fund is in any way - not just ideally - accurately "global".

I'm not asking for perfection - just a wee bit more accuracy. Is this too much to ask?

Fidelity Multi Asset Allocator funds give the UK an amount that fairly accurately reflects it's share of global market capitalisation.

OldBill

A_T wrote: »

Fidelity Multi Asset Allocator funds give the UK an amount that fairly accurately reflects it's share of global market capitalisation.

Just had a quick glance now & will have to check out more thoroughly later - but it looks like the Fidelity Investment Funds IV - Fidelity Multi Asset Allocator Adventurous Fund Y Acc (snappy title!), or something like it, looks like the product I may go for. It would have taken me weeks to find it.

I've only had a swift sniff at the above for now. If anyone knows of any problem with it, I'd be grateful for your comments.

A_T - I am much indebted to you - please accept a "thanks" vote on the forum.