Core funds to add to VLS/HSBC Balanced

Shocking_Blue

Hi All,
I'm looking for some funds to complement my existing blended/balanced VLS and HSBC core funds. At the moment I'm adding some satellite funds (tech/green energy) but will shortly need some funds to add the core (so less risky than the sat funds but still with potential - can be 100% equity).
I've seen the following mentioned a time or two, and they seem sensible:
FTSE Global All Capital Index Fund
FTSE All-World UCITS EFT
Wondered if there were any ideas beyond these in the context of the above.
Thanks.

csgohan4

those two funds do overlap as will they will do with your core funds as well. Have you looked at your portfolio, and xrayed to see where you lacking in? 

Maybe EM, Small caps or even tech? There is no such thing as less risky in satellite funds, unless your investing in gilts. All investments carry a risk

What other funds do you hold?

Shocking_Blue

csgohan4 said:

those two funds do overlap as will they will do with your core funds as well. Have you looked at your portfolio, and xrayed to see where you lacking in? 

Maybe EM, Small caps or even tech? There is no such thing as less risky in satellite funds, unless your investing in gilts. All investments carry a risk

What other funds do you hold?

Thanks.
Had the idea of more EM and small caps but was unsure of which fund (perhaps in addition a bit more in a tech fund - Allianz Technology Trust (ATT) (another 8% or so))
Current funds:
VLS 60 & 80
HSBC Global Balanced
BMO Responsible Global Equity Fund
L&G Global Technology (8% of portfolio)

El_Torro

The only satellite fund I hold is ASI Global Smaller Companies. It's served me well over the years, though there are other Smaller Companies funds which are probably just as suitable. 

As well as Emerging Markets, you could look at Frontier Markets, or commodities, or gold. Just depends what you want from a satellite fund.

bowlhead99

Shocking_Blue said:

Hi All,
I'm looking for some funds to complement my existing blended/balanced VLS and HSBC core funds. At the moment I'm adding some satellite funds (tech/green energy) but will shortly need some funds to add the core (so less risky than the sat funds but still with potential - can be 100% equity).
I've seen the following mentioned a time or two, and they seem sensible:
FTSE Global All Capital Index Fund
FTSE All-World UCITS EFT
Wondered if there were any ideas beyond these in the context of the above.
Thanks.

You are saying you already have a core investment of VLS and HSBC funds... and then 'will need some funds to add to the core', and you are considering those two global trackers.  

Why will you need funds to add to the core? The core is already a balanced blend of multi asset funds. The multi asset funds you have, already track equity indexes around the world as part of what they do. You have mixed together V Lifestrategy and HSBC Global Strategy because you don't know which you prefer, so are doing both. That's fine. They will be the core of your portfolio. OK. Why does the core of your portfolio 'need some funds to add to the core, less risky than the sat funds but still with potential'? 

The core of your portfolio is already a mix of assets, with potential - at whatever level of potential (and risk) that you want. With a mix of VLS and HSBC you will have exposure to about 20 underlying funds (the funds that VLS and HSBC invest into), as the core beating heart of your portfolio. Why does it need to now have some global 100% equity trackers added to it?  If you want a greater equity allocation within the core of your portfolio, simply use higher-risk versions of the VLS and HSBC funds you are currently using.

If you want to put more money in your portfolio, you would add to the core of your portfolio by buying more of the funds that make up that core (e.g. put another £2000 into the VLS product you are using and another £2000 into the HSBC product you are using). Having already covered a whole range of tracked markets with the VLS and HSBC funds, you may also want to add money to your satellite funds for particular specialisms. But there shouldn't be any reason to go and find more new funds to throw into your core as more money becomes available to you. You already have a core. It is not an insatiable demon that demands to be fed new blood of different types all the time. If you want to throw more fuel on the fire, you can simply buy more units of VLS/HSBC.

ColdIron

Shocking_Blue said:

Hi All,
I'm looking for some funds to complement my existing blended/balanced VLS and HSBC core funds. ...
I've seen the following mentioned a time or two, and they seem sensible:
FTSE Global All Capital Index Fund
FTSE All-World UCITS EFT

What are you hoping to achieve with these? There is tremendous overlap across them. To create a food analogy, let us say that you had decided on an xmas ready meal dinner and bought one from Tesco and another from Sainsbury's. What would adding a Morrison's and Aldi xmas ready meal dinner achieve? Adding something you didn't already have, such as an xmas pudding, brandy butter and half a bottle of bubbly would make more sense

Shocking_Blue

bowlhead99 said:

Shocking_Blue said:

Hi All,
I'm looking for some funds to complement my existing blended/balanced VLS and HSBC core funds. At the moment I'm adding some satellite funds (tech/green energy) but will shortly need some funds to add the core (so less risky than the sat funds but still with potential - can be 100% equity).
I've seen the following mentioned a time or two, and they seem sensible:
FTSE Global All Capital Index Fund
FTSE All-World UCITS EFT
Wondered if there were any ideas beyond these in the context of the above.
Thanks.

You are saying you already have a core investment of VLS and HSBC funds... and then 'will need some funds to add to the core', and you are considering those two global trackers.  

Why will you need funds to add to the core? The core is already a balanced blend of multi asset funds. The multi asset funds you have, already track equity indexes around the world as part of what they do. You have mixed together V Lifestrategy and HSBC Global Strategy because you don't know which you prefer, so are doing both. That's fine. They will be the core of your portfolio. OK. Why does the core of your portfolio 'need some funds to add to the core, less risky than the sat funds but still with potential'? 

The core of your portfolio is already a mix of assets, with potential - at whatever level of potential (and risk) that you want. With a mix of VLS and HSBC you will have exposure to about 20 underlying funds (the funds that VLS and HSBC invest into), as the core beating heart of your portfolio. Why does it need to now have some global 100% equity trackers added to it?  If you want a greater equity allocation within the core of your portfolio, simply use higher-risk versions of the VLS and HSBC funds you are currently using.

If you want to put more money in your portfolio, you would add to the core of your portfolio by buying more of the funds that make up that core (e.g. put another £2000 into the VLS product you are using and another £2000 into the HSBC product you are using). Having already covered a whole range of tracked markets with the VLS and HSBC funds, you may also want to add money to your satellite funds for particular specialisms. But there shouldn't be any reason to go and find more new funds to throw into your core as more money becomes available to you. You already have a core. It is not an insatiable demon that demands to be fed new blood of different types all the time. If you want to throw more fuel on the fire, you can simply buy more units of VLS/HSBC.

Thanks Bowlhead,
Yep, perhaps it's not needed - just stick more into VLS for example. Just didn't want to have all (or the majority of) eggs in one basket, so to speak, or just a little variety, but perhaps that principle/reasoning doesn't apply.

Shocking_Blue

ColdIron said:

Shocking_Blue said:

Hi All,
I'm looking for some funds to complement my existing blended/balanced VLS and HSBC core funds. ...
I've seen the following mentioned a time or two, and they seem sensible:
FTSE Global All Capital Index Fund
FTSE All-World UCITS EFT

What are you hoping to achieve with these? There is tremendous overlap across them. To create a food analogy, let us say that you had decided on an xmas ready meal dinner and bought one from Tesco and another from Sainsbury's. What would adding a Morrison's and Aldi xmas ready meal dinner achieve? Adding something you didn't already have, such as an xmas pudding, brandy butter and half a bottle of bubbly would make more sense

ColdIron,
Thanks. I guess I was trying to stay safe with getting more Turkey, but trying to add a bit of variety by looking for one that had some parsnips that my existing meals didn't have. My pudding and bubbly are the tech and green funds I guess, more like treats than main courses. Perhaps a vegan version (still safe and fulfilling the same purpose but quite different ingredients, if that makes sense..)

eskbanker

Shocking_Blue said:
I guess I was trying to stay safe with getting more Turkey, but trying to add a bit of variety by looking for one that had some parsnips that my existing meals didn't have.

In which case buy some parsnips, not another full ready meal that happens to have a small quantity of parsnips in it!

AnotherJoe

What everyone has said, your basic idea makes no sense eg "adding to the core" , if you want to do that just bump up what you already have. The overlap would  be huge with similar global funds. Pointless. 

In any case I think you'd be far better off to increase the satellites - energy, health, smaller cos, etc

Shocking_Blue

eskbanker said:

Shocking_Blue said:
I guess I was trying to stay safe with getting more Turkey, but trying to add a bit of variety by looking for one that had some parsnips that my existing meals didn't have.

In which case buy some parsnips, not another full ready meal that happens to have a small quantity of parsnips in it!

That makes sense, but I don't want 40K worth of parsnips