Portfolio allocation/help

Grey_Wolf

Be glad for any help or input, Is my current portfolio diversified enough? age 38. Also how should I allocate future contributions my aim was to contribute monthly to each fund equal to its desired allocation percentage, then after a year start to re-balance via monthly contributions until the allocation is back in line, or should I invest to each fund equally, or would yearly re-balancing via selling and buying be better?

As you can see I hold an active income fund for part of my UK allocation, my thinking here was to add further diversification and also guessing this fund will hold more defensive shares which may offer further protection to my portfolio in a down turn??? Is this a waste of time, should I just stick to an All share FTSE tracker that I already have and be done with it??

L&G AAA-AA-A Corp Bond All Stocks Index.........8%
L&G All Stocks Gilts Index Fund............................8%
L&G Cash Fund.....................................................10%

L&G FTSE Global Developed Small Cap Index.....4%

L&G Global Emerging Markets Index Fund............6%
L&G Stewart Investors Asia Pacific Leaders..........11%

L&G Artemis Income...............................................8%
L&G UK Equity Index..............................................17%

L&G World (Ex-UK) Equity Index Fund...................28%


Thanks for any comments/advice

AlanP_2

Is this a pension portfolio (accesible from 55/57), an ISA portfolio, or a mix of both with some unwrapped investments as well?

What is the objective of the portfolio?

If your plan is to sell out and use the cash to buy a new house / car / yacht in 5 -10 years you will get a different answer to if your plan is to save for retirmenent in 25+ years.

Based on the bare facts you supplied unless you have a good six figure sum invested and are adding significant amounts it looks over engineeered for a basic DIY portfolio in my view.

SonOf (an IFA) made a comment just recently that they don't use Asia Pacific Leaders as a significant proportion of the underlying assets are not Asia based companies but companies that trade a lot in Asia. So, they could already be in one of your Global / UK funds and you are accidentally doubling up on them.

Have you looked at each fund in detail and thought about "why would I buy this region / fund"? What does it add to my overall portfolio?

Assuming this is a portfolio aimed at retirement / 20 years+ the amount of Bonds is high given your age and the Cash Fund is returning less than inflation (2.4% over 5 years according to Trustnet) so losing value each day you hold it.

Grey_Wolf

Ok bit of background.

Its a company 'personal pension' with L&G basically company pays into my pension 7.5% I pay 6.5% (increased contributions) maxed out companies. Management and allocation of investments is down to me alone! Fair selection of funds to invest in both L&G and others.

It's for retirement (if i make it, im a stress head lol) if not for loved ones!

Right.

The cash allocation (cash fund with L&G): this is there to add an element of safety when the eventual crash ocurs, which it will!, I intend to plough this in when eventually stocks do crash at a yet to be decided percentage. (Thinking of reducing this holding to 5%) I guess I will attempt to time this investment 'comence grilling!'
On a serious note purly there for safety i realise it is not 'working for me' and that long term inflation will errode it, it is hrld in a cash fund within L&G most likely it is losing due to fund fee also etc for some reason i am draen to holding an rlrment of my fund in cash (also researched thus was a sensible approach)

The Asia pacific leaders investment: this fund has higher allocation to India (which i believe to be a high future return/growth, coupled with the Emerging market tracker which is allocated higher towards china, again trying to diversify whilst going with my opinion on where potentially higher returns can be achived!

Point taken on APL i assumed it invested directly into compaines in that region, will research this.

Bonds allocation: although high, i am invested 1/3 of my fixed income into corporate bonds so risk level and return puts it someway between the gilts and stocks was my thinking.

Would be interested in other peoples opinion on my bonds allocation.

I also have a BTL property, further diversification.

Thanks for any responses!!!

Alexland

So aged 38 with 74% equities, 16% bonds and 10% cash doesn't look unreasonable to me at current market valuations. Overall I would expect it to grow slightly above inflation in the medium term. Personally I prefer to keep it simpler with less funds to rebalance. Assume you have checked the charges are good value?