My two proposed ISA Portfolios

tel_

I am in the process of constructing two simple ISA portfolios for long term (10-20 yrs) growth.

My level of investment knowledge is basic (2.5 years self taught) using research online from MSE (reading the Pensions & Investments page was my very first read on the subject, and a great place to start IMO), Trustnet, This Is Money, Moneyvator, ii podcasts etc.

My first S&S account I opened was with Vanguard, contributing mainly regular money over 2 years, and I've found it fascinating to see my contributions rise and fall over a very eventful couple of years! I started off contributing into LS60 and then LS100 (I know, why didn't I just start with LS80? But we all live and learn!). Later on, after more research, I switched into Vanguard Global All Cap, as I felt this was a better option for my long-term investment goal.

Now I've built-up a decent pot of money in my Vanguard account, I'm moving it out to be more cost effective, and to enjoy the benefits of using more than one fund provider.

A two-year fixed cash ISA I have will be maturing later in the year, and after some contemplation, I have decided to transfer this into a separate S&S account at some point. Hence my decision for two 'basic' portfolios.

Here are my picks:

Portfolio 1 - comprised of Funds & 1 UT

60 %  Vanguard FTSE Global All Cap
  8 %  Vanguard Global Equity
  8 %  Vanguard Global Small Cap
  8 %  Schroder Global Recovery
  8 %  Baillie Gifford American
  8 %  Jupiter Ecology

Portfolio 1, not highly diversified, but more so than my current standalone fund of Global All Cap.

Portfolio 2 - comprised of IT's & ETF's

50 %   HSBC MSCI World UCITS ETF
  8 %   Vanguard Global Small Cap
  8 %   Scottish Mortgage
  8 %   Edinburgh Worldwide 
  8 %   Artemis Alpha 
  5 %   Vaneck Vectors Gaming
  5 %   L&G Battery Value-Chain
  4 %   iShares Global Clean Energy
  4 %   TB Guinness Global Energy (possible short-term holding 1-2 yrs).

I did consider introducing bonds & PE to Portfolio 2, and a possible commodity, but decided against these as they would contradict my main objective of KISS. My aim is to analyse my portfolios twice-yearly, with a possible 2 switches per year (maximum), for Port 2, (this S&S ISA will have more money invested in it).  And I don't envisage any switches necessary for Port 1.  And no rebalancing for either.

I could ramble on about more stuff, but would just like to point out Vanguard Small Cap features in both portfolios.  This is due to me not finding an alternative to my liking for Portfolio 2 yet. I am aware some people prefer active Small Caps, as opposed to a passive ones, but any suggestions will be gratefully noted and researched into.

Feel free to be as honest or as brutal as you like. 

I'm  embraced to what might be coming my way!

DireEmblem

Your first portfolio adds up to 98%

Your second portfolio looks more adventurous to me, but good luck with it!

tel_

DireEmblem said:

Your first portfolio adds up to 98%

Your second portfolio looks more adventurous to me, but good luck with it!

Yes, typo - Jupiter Ecology amended to 8 % now.

You can see why I'd never make it as a financial advisor 

Steve182

If I understand correctly you will divide between both portfolios?

If you only started investing in ISAS 2 years ago I assume with growth and this year's contribution you don't have >£80k or so total pot.

If half the money is in 2 funds  that means no more than £3k on average in each of the others.

Personally I would choose fewer funds, investing a larger amount in each

Edit -

Sorry, just re read your post and see that you are proposing to cash in a cash ISA also, so my comments may not apply.


Good luck with whatever portfolios you choose 

   

Thrugelmir

To comment one needs to understand your rationale behind selecting the various funds and the %'s allocated to each of them.  On the face of it both portfolios combined are highly correlated and lack diversification.  Unless you've a portfolio worth a significant value then you've too many holdings. 

AnotherJoe

IMO there's way to much overlap between the two. 

For a start there's going to be almost 100% match between vanguard global and msci world.

I suggest you pick one isa and in that have 50% global 50% and small companies, just two funds or ETFs, and in the other do your speculating. 

I'd also let the former, with the two funds, ride rather than rebalance. 

tel_

Maybe I've not made the reason behind my portfolios very clear - apologies.

Portfolio 1 will have a smaller amount of money invested in it, compared to Portfolio 2. (Hence why I've not chosen as many funds).

The fixed-term Cash ISA I'm transferring in, is circa 88k, and going into Portfolio 2.

I don't feel comfortable lumping all my money into just one portfolio, even though I understand the funds are ringfenced and protected somewhat.

I wont be choosing just one portfolio.

Thrugelmir

tel_ said:

Maybe I've not made the reason behind my portfolios very clear - apologies.

There's no need to apologise. Many people don't rationalise their investment choices to themselves. Let alone anybody else. Often easy to affirm a selection to oneself - bull points.  To every investment there'll be potential downsides - bear points. Decisions should be made on balance. Not just because they are themes of the moment. 

AlanP_2

I would look at your overall portfolio position so both ISAs, pensions and cash to start with.

Identify your desired overall asset allocationand then select the funds / ITs that meet that allocation and then decide on which pot to hold them in.

For example you might want expected lower growth options inside a pension wrapper to minimise future income tax and more volatile assets with higher growth potential in the ISAs.

Very difficult to comment on individual ISA options in the absence of the bigger picture.

tel_

Thrugelmir said:

tel_ said:

Maybe I've not made the reason behind my portfolios very clear - apologies.

There's no need to apologise. Many people don't rationalise their investment choices to themselves. Let alone anybody else. Often easy to affirm a selection to oneself - bull points.  To every investment there'll be potential downsides - bear points. Decisions should be made on balance. Not just because they are themes of the moment. 

Thanks for the words of wisdom.

I shall continue to do my research and try to choose my allocations/funds wisely.

As one forum member on here once mentioned:

"You'll never stop learning, when it comes to the world of investments".

Or words to that effect 😁.