A question re balancing.....

rothers

Good evening, first of all let me please admit to being a total novice in relation to investing. The investments that I have made have been very ad hoc and either been by lump sum or regular investing, most of my decisions were based on reading the HL Wealth list. More recently I have been reading about multi asset funds and like the idea of that as a total novice. After investing in those my investments are as follows (please note that the total invested is only around £40k! I have far too much invested in premium bonds (more than invested in funds) as my wife, and me to a much lower extent, is very risk averse.

HSBC Global Strategy Balanced 16%
Vanguard Lifestrategy 40% equity 16%
LF Lindsell Train UK Equity 21%
Artemis Strategic Bond 20%
Fidelity Money Builder Income 16%
ASI European Real Estate 4%
GAM Star Credit Opportunities 4%
HL Select Uk Income Shares 3%

Am I overweight in any sector, potentially UK Equities? I have thought about selling everything apart from the multi asset funds and putting it into those but I thought that I would ask for advice first. LF Lindsell Train has done very well for me although I understand that this year hasn’t been too good.

I understand that it is my decision but I would be grateful for any advice offered.

Many Thanks

Another_Saver

I use the HL Wealth list as blacklist more than a whitelist.
IMHO your UK weight is fine but sell the HL fund it's a rip off.
You are 55% bonds - this is a conservative allocation.
Bond yields (i.e. the interest rate you're getting on bonds right now ) is barely worthwhile Vs cash so I personally am 100% equity in my investment accounts.
If there isn't a clear strategy or reasoning behind your fund mix... Imho Just go with a simple global index or multi asset fund.

Thrugelmir

With a portfolio worth £40k.  I'd start by ditching the 3% and 4% holdings.  Too small to have any real impact on the portfolio.  3/4 funds should be more than adequate until the portfolio is of a larger size. 

What are the funds going ultimately going to be used for ? What's the timescale ?  Are they in an ISA or a SIPP? 

dunstonh

Good evening, first of all let me please admit to being a total novice in relation to investing.

It shows in your fund selection to be honest.  However, you do seem to recognise that.  So, that is a positive thing.

most of my decisions were based on reading the HL Wealth list.

Marketing lists are no way to buy funds.

With £40k you need just one multi-asset fund.  That is all.  Dont over think it at this stage.

Alexland

There has to be a very good reason to make investments any more complicated or expensive than they need to be. HL are expensive and so are some of those funds. Assuming you are investing for 5-7 years or longer it's not really worth investing at lower than Balanced risk and if you want less volatility just hold some cash or premium bonds alongside which you are doing anyway. I agree with the suggestion just to get a single multi asset fund for now.

rothers

Thanks to all for your comments, they are very much appreciated. From reading this forum recently I had come to the conclusion that I should simplify things and just have one, or possibly two multi asset fund but I just wanted confirmation that I would be doing the right thing.
As a side note, what do you make of the Lindsell Train Equity Income fund? I’m a little bit hesitant to move that to the MA fund as it has done well for me in the past. Having said that it goes against the idea of simplifying things.
once again, your help is invaluable, thank you. 

Thrugelmir

I don't personally hold Lindsell Train Equity Income fund so have no vested interest.  As long as Lindsell Train themselves remain in charge and they stick to their core values I'd continue to hold. At the current time there's little to dislike about the portfolio. All quality cash generative businessess. 

rothers

Thrugelmir said:

I don't personally hold Lindsell Train Equity Income fund so have no vested interest.  As long as Lindsell Train themselves remain in charge and they stick to their core values I'd continue to hold. At the current time there's little to dislike about the portfolio. All quality cash generative businessess. 

Thank you. 

Albermarle

You do not have to take the suggestions of a single multi asset fund as an instruction. If you want to keep LT UK as an extra that is up to you .
You may wish to consider which multi asset fund to hold as although they are similar they are not the same .
For example HSBC does not have a fixed % equity and has a low UK %
Vanguard Life strategy has a fixed % equity and a higher UK % ( various opinions on whether that is good or not )
There are others as you can see in this comparison table.
https://monevator.com/passive-fund-of-funds-the-rivals/
Of course with any of these multi asset fund providers the most important decision is the risk level you pick.

MaxiRobriguez

Word of warning to the OP: Shifting your portfolio from what you have to a single globally equity tracker now will significantly increase short term volatility risk as equities move faster than bonds and we're in a period where equity prices are moving very rapidly.

If you do shift your allocation, which I agree is probably wise, then do not get surprised or worried about your portfolio going up or down faster than it did. Be ready for that, and do not rush to take action when it occurs - leave it as it is (and carry on adding to it if you can).