Baillie Gifford American - ouch!!

Herbalus

I am planning on selling my holding in about 3 weeks time, so the recent dip is slightly irritating. Will I delay the sale? I don’t know. The timing was because it’s in my Lifetime ISA and the next govt contribution will come in about 3 weeks, and my overall balance will then make it worthwhile to sell out of funds and move into etfs for capped charging. I think it cost about £2 or £3 more per month in funds vs etfs at the moment, so not a huge amount if I wait for a fund to recover (although it can keep going down too).

That being said, less than 10% of my LISA is in BG America so it’s not much, and the majority is in Blackrock consensus with some L&G international index also and small ftse250 tracker to counteract lack of UK in L&G. (Bit of a mismash to be honest and I’m aware of the overlap but it’s my first real foray into investing so I’m still learning!).

will watch with interest to see what happens in next 3 weeks!

Albermarle

 and the majority is in Blackrock consensus with some L&G international index also and small ftse250 tracker to counteract lack of UK in L&G.

The Blackrock Consensus funds already have a high UK bias.

dunstonh

Yes I'm aware this is a major risk with an actively managed fund over a tracker/index. 

No its not.    The risk is in the underlying assets.   There are higher risk tracker funds.  BG American makes a great satellite fund to your core US holding.  But expect it to be losing large amounts at time as you cant get the large gains without the large losses.

Eco_Miser

swleventhal said:

Should I reinvest from this fund into something less risky (eg a balanced multi asset fund) once the fund recovers in x months/years?

Yes, unless by the time it recovers you have discovered that you can live with the volatility.

Personally, I only look at my investments once a month, and that may be too often. I only know there's been a drop because of posts here.

JohnWinder

swleventhal said:

 However I read that one of their top investors had recently retired. Yes I'm aware this is a major risk with an actively managed fund over a tracker/index. 

'investors'? Did you mean 'investors' or 'managers'?

Thrugelmir

swleventhal said:

Thrugelmir said:

What's the core of your portfolio?  Hopefully a broad diverse mix of sectors and asset classes. 

The core of my 2 pensions are HSBC Global Strategy and Blackrock Consensus 85. I put a little too much into BG American with hindsight (yes I got too excited about past performance). I've also put a small percentage into BG Shin Nippon, Fidelity China Special Situations and Global Emerging Markets as I wanted more exposure into those areas than the 2 multi asset funds gave me. 

What you've ended doing is duplicating holdings. Global funds have an overweighting to US stocks. Isn't just BG American that's suffered though the concentrated nature highlights the impact of recent news. 

older_and_no_wiser

Eco_Miser said:

Personally, I only look at my investments once a month, and that may be too often. I only know there's been a drop because of posts here.

I think you've hit the nail on the head. When I had my old pensions, I had no online access (that I was aware of) and I got a paper statement once a year. Each year the figure was higher and I was oblivious of any major ups and downs during the year. Now I have 24/7 online access to every detail and a little knowledge is a dangerous thing! I will try and not micro analyse from now on and just check periodically as you say.

I will reduce my holding of BG America at some point, but certainly not now while I'm running a loss 

Thrugelmir

swleventhal said:

Eco_Miser said:

Personally, I only look at my investments once a month, and that may be too often. I only know there's been a drop because of posts here.

I will reduce my holding of BG America at some point, but certainly not now while I'm running a loss 

Being emotionally attached to holdings isn't healthy. Set limits and stick to them. Accepting ones own mistakes is all part of the learning experience. If this fund is a sizable % of your portfolio. Perhaps look to downsize at some point as the opportunity arises. 

csgohan4

i hold the BG American fund too, but only as a satellite to overweight a bit in US sector. I bought it last year, haven't really checked the holding recently, because it's a long term hold.

I also hold the China and pacific variants as well, they are all volatile, hence why not the majority of my portfolio.  Thankfully the latter as doing very well

older_and_no_wiser

All the Google and news alerts I'm getting now on my devices about investing and markets doesn't help either. It can lure you in to emotional and FOMO decisions which isn't ideal.