3 questions

gudda96

Drsyn

Yes, I have been reading up on CGT as its talked about on Citywire forum a lot, some said costs were high though?

Aminatidi

Costs will depend on a number of factors though, platform, dealing fees, holding fees.

I have around 30% of my investments in Capital Gearing Trust because of what has, to date, been its long term performance.

I'm by no means suggesting my approach is right but I have around 55-60% overall split between Capital Gearing, Ruffer, and Personal Assets Trust, with the rest in 100% equity funds and investment trusts (several of which you mentioned).

Long term performance of Capital Gearing Trust

badger09

gudda96 wrote: »

What are you trying to achieve?

How much is involved

Badger

First quested answered in my reply to Lomcevac and I think amount is irrelevant really, no offence of course.

Appreciate reply

With respect, I think the amount is relevant. A portfolio of 7 or 8 holdings might be appropriate for a 6+ figure investment. Much less appropriate for £10k;)

No offence taken:)

gudda96

badger09 wrote: »

With respect, I think the amount is relevant. A portfolio of 7 or 8 holdings might be appropriate for a 6+ figure investment. Much less appropriate for £10k;)

No offence taken:)

Ok Badger

Not a lot in comparison to others on these forums, £40k to be exact, and I have JUST sold L/G health and Asia ex japan.this leaves

FS
SMT
LGTE
LS80/20
VWRL

more comments please as I want to end up with a porfolio that is as safe as one can be and I can stop buying/selling.I keep hearing about CGT ?

bowlhead99

gudda96 wrote: »

Ok Badger

Not a lot in comparison to others on these forums, £40k to be exact, and I have JUST sold L/G health and Asia ex japan.this leaves

FS
SMT
LGTE
LS80/20
VWRL

more comments please as I want to end up with a porfolio that is as safe as one can be and I can stop buying/selling.I keep hearing about CGT ?

With respect, the choices made do not come across as wanting a portfolio that is 'as safe as one can be'.

You say you have two objectives, (1) to retain value and (2) to allow you to take an income.

I would suggest that if there was a global equity crash over an 18-mth to two year period at the same time as sterling strengthened, you could lose 40% of the value currently in LS80, 50%+ in VWRL, 60% in FS or LTGE, maybe 75% in SMT.

And none of the fund choices provide much of a natural income, you are relying on capital growth to allow you to sell units to get cash out. And you won't want to be doing that if the market values are in the floor.

CGT is kind of the opposite sort of fund from SMT and most of the others. It has a mix of asset types (not all equity shares) so it will get much lower returns in the good times but should hold its value better in the bad times

MaxiRobriguez

I agree with Bowlhead. On initial discussion the asset allocation sounds completely at odds with what you want, and your age. You might want to preserve the capital to fund your healthcare in later years if you need it, but you have constructed a portfolio which is volatile and much more at risk to large downsize losses than other asset class funds.

gudda96

Thanks to all, especially those long detailed replies, really appreciated, so can I ask for some specific suggestions please, I am a big boy, dont expect guarantees, just want to read various views, then I will make up my own mind.

so (1) want to preserve capital as much as possible.
(2) I will sell profit at appropiate time and treat as income.
(3) I read the factsheet for CGT and it appears for its obvoious good record, its cost are high(ish)and I struggled to find their portfolio

Prism

gudda96 wrote: »

Thanks to all, especially those long detailed replies, really appreciated, so can I ask for some specific suggestions please, I am a big boy, dont expect guarantees, just want to read various views, then I will make up my own mind.

so (1) want to preserve capital as much as possible.
(2) I will sell profit at appropiate time and treat as income.
(3) I read the factsheet for CGT and it appears for its obvoious good record, its cost are high(ish)and I struggled to find their portfolio

Firstly here is the factsheet for CGT http://www.capitalgearingtrust.com/~/media/Files/C/CGT/Monthly%20factsheets/July2019/Capital%20Gearing%20Trust%202.pdf

If this was me, with 40k, I would split it into two. Half for equities (growth) and half for cash, bonds and trusts like CGT. For the equities part I would just use two of your funds, most likely LTGE and FS. SMT is too risky I would say for this scenario. CGT is currently about 30% equities so this should in total give you an allocation somewhat comparable to VLS60.

When you want an income take it from equities assuming they grow, or cash/CGT if they don't

MaxiRobriguez

gudda96 wrote: »

Thanks to all, especially those long detailed replies, really appreciated, so can I ask for some specific suggestions please, I am a big boy, dont expect guarantees, just want to read various views, then I will make up my own mind.

so (1) want to preserve capital as much as possible.
(2) I will sell profit at appropiate time and treat as income.
(3) I read the factsheet for CGT and it appears for its obvoious good record, its cost are high(ish)and I struggled to find their portfolio

If it were me in your scenario, I would look to an overall allocation which was more along the lines of:
- 20% gilts
- 20% global equity tracker
- 20% equity dividends
- 20% cash
- 10% high grade corporate bonds
- 10% gold/silver

Take the income from gilts/bonds/equity dividends rather than sell out the underlying holdings. 50% of your holdings would be allocated to this, and if you could get an average yield of 4% through this combination of gilts/equity dividends that would give you £800 in income a year. Use the cash to buy any notable dips.

That's just an idea to spark the thought process. It's based on about 30 seconds worth of consideration and not at all an actual suggestion of what you should do.

DrSyn

I to agree with bowlhead99. The percentage in shares for someone of your age who has capital preservation in mind is too high.

I would again suggest a low cost global multi asset fund at the correct risk grade. Have a look at these:-

https://www.hsbc.co.uk/investments/isas/hsbc-global-strategy-portfolios/#conservative

https://www.vanguardinvestor.co.uk/investments/9238?intcmpgn=ls40_findmore_link


Capital Gearing Trust try this:-

http://www.capitalgearingtrust.com/

http://www.capitalgearingtrust.com/~/media/Files/C/CGT/cgt-full-portfolio-listing-5-april-2019.pdf

http://tools.morningstar.co.uk/uk/cefreport/default.aspx?tab=8&SecurityToken=E0GBR004CX%5D2%5D0%5DFCGBR%24%24ALL&Id=E0GBR004CX&ClientFund=0&CurrencyId=GBP