Porfolio Simplification

danm

As the title suggests.

When i started my investing journey i had a random selection of funds - far too many with little clear direction. With the help of multiple threads i decided to switch my approach to a passive approach and switched into a selection of index products..... i then discovered the simple joys of global multi-asset funds and since that time have invested only in HSBC Global Strategy dynamic/balanced funds.

My portfolio is approx 80K in the index funds and 50K in the HSBC multi-asset funds. I am also adding regular amounts to the HSBC funds through standing order to utilise my ISA allowance.

my instinct is simply to sell the index funds and reinvest the proceeds in the multi-asset. While i am sure my approach had some logic/rationale when i started, i now seems to have an overly complicated mix of products again, with no real strategy (other than to try to broadly diversify) - something that the muti-asset fund can do in a single wrapper

I want to make sure i am not missing something here before i hit the button so any advise appreciated. Below is the list of index products outside the multi-assets. (numbers in brackets is the % holding of the 80K)

thanks in advance - dan

Fidelity Index Emerging Markets P Acc (0.12)
Fidelity Index UK Fund P-Acc (0.05)
Fidelity Index US Fund P-Acc (0.1)
HSBC FTSE 100 Index Fund Inc C (0.05)
iShares Japan Equity Index Fund Class H Acc (0.08)
iShares UK Equity Index Fund Class H Acc (0.05)
USDARES CORE MSCI EM IMI UCITS ETF USD ACC (0.06)
Vanguard FTSE Developed Europe ex-UKEquity Index Fund Acc (0.13)
VANGUARD FUNDS PLC FTSE 100 UCITS ETF GBP DIS (0.09)
Vanguard Pacific ex-Japan Stock Index Acc (0.08)
Vanguard US Equity Index Acc (0.2)

regions
APAC (ex Japan) (0.08)
EM (0.18)
Europe (ex UK) (0.13)
Japan (0.08)
UK (0.24)
US (0.3)

Prism

I am a believer in a simpler allocation and don't bother with regional funds for large caps at all. A global fund is all I want. I then decide on % allocation to smaller companies (global and/or regional) and emerging markets.

Fixed interest is separate.

bostonerimus

First decide on an asset allocation. Look at everything where there is duplication eg you own Fidelity and Vanguard US equity Indexes and see what you can sell/transfer to get to your desired allocation.

Personally I'd probably sell all the index funds and just stick with the global multi-asset fund.

danm

bostonerimus wrote: »

First decide on an asset allocation. Look at everything where there is duplication eg you own Fidelity and Vanguard US equity Indexes and see what you can sell/transfer to get to your desired allocation.

Personally I'd probably sell all the index funds and just stick with the global multi-asset fund.

Yes - I think a simple multi-asset fund with potentially some small cap added on (as prompted by Prism's response) is my direction of travel.


thanks both

DrSyn

Look at the

"Changing your investment approach. Managing your portfolio"

you where interested in.

DrSyn

A well diversified, low cost global multi fund, set at a risk you are comfortable with is fine. One such as:-

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

If you are young enough, adding another fund such as smaller companies, to give your portfolio a tilt in a particular direction, is OK.

However just be careful as you head towards retirement, keep a close eye on the Share/Bond split so you do not take on too much risk.

This you should be able to do now, as you only have 2 funds instead of 11 funds to keep track of.

Good Luck!

C_Mababejive

Strange as ive been pondering the same question today. I have HSBC global strat balanced acc

I also have HSBC FTSE all world index acc

I have an assortment of other investments and part of me thinks,well i just need to simply things and pump money into these two . The big question is,is this putting all your eggs in two baskets?

Well in favour of the approach is that there is good diversification and low charges and they both generate decent returns. It seems to me they are pretty much buy and (almost) forget and could be suitable for regular investment.

Im gradually offloading shares and buying into products such as the above. I dont really need the divis and so i can Accumulate for a while,minimum 10 year window for me..

danm

Thanks all for the feedback on this.

My portfolio is now

HSBC Global Strategy 83%
Vanguard global small cap index 10%
Henderson property ~7%

Now I do not get a headache when I log-on to the platform