Funds for a stockmarket downturn/crash

Prism

Shocking_Blue said:

Prism said:

I went into last years crash with around 10% in global government bonds rather than gilts, some fixed savings accounts and the rest in more defensive equity funds like Fundsmith and Lindsell Train. I barely saw a drop and it only lasted for 8 weeks or so.

It is possible to construct a portfolio that feels more defensive and still produces good returns. Might not work every time though.

Is the LT fund this one?

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MC3M

Do you see any potential issue with the relatively high Japan exposure?

Thanks

Thats the one - its income only. Its just one fund of a few and the only one with Japan exposure which is partly why I picked it.

Shocking_Blue

Prism said:

Shocking_Blue said:

Prism said:

I went into last years crash with around 10% in global government bonds rather than gilts, some fixed savings accounts and the rest in more defensive equity funds like Fundsmith and Lindsell Train. I barely saw a drop and it only lasted for 8 weeks or so.

It is possible to construct a portfolio that feels more defensive and still produces good returns. Might not work every time though.

Is the LT fund this one?

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MC3M

Do you see any potential issue with the relatively high Japan exposure?

Thanks

Thats the one - its income only. Its just one fund of a few and the only one with Japan exposure which is partly why I picked it.

Right, thanks.

Have a small Japan fund and wouldn't want any more exposure really, but thanks in any case.

Shocking_Blue

NedS said:

Shocking_Blue said:

Prism said:

I went into last years crash with around 10% in global government bonds rather than gilts, some fixed savings accounts and the rest in more defensive equity funds like Fundsmith and Lindsell Train. I barely saw a drop and it only lasted for 8 weeks or so.

It is possible to construct a portfolio that feels more defensive and still produces good returns. Might not work every time though.

Is the LT fund this one?

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000MC3M

Do you see any potential issue with the relatively high Japan exposure?

Thanks

I wouldn't view it so much as a high exposure to Japan, but rather the fund is very concentrated (high conviction) with only ~25 holdings, so large holdings in a few Japanese companies will give that "high exposure" percentage.

Thanks for the explanation on this.

takesyourchances

Maybe something like infrastructure investment trusts

Stargunner

I am not looking to time the market or expecting there to be a crash. I am considering retiring early within the next few years. I already have a multi asset fund and the remainder of my sipp is in 100% equity’s and cash. I could sell some of my equities and add to my existing multi asset fund, but I was also just looking at maybe adding some defensive funds like bonds to reduce my risk. There are so many different kinds of bonds that it is difficult to know what ones would be best and when I was looking at them I noticed that most seem to rise and fall at the same time as equities, just by smaller amounts. It was then that I noticed that the gilts seemed to perform better during the covid crash. 

tranquility1

Gold is the ultimate defensive asset.

tranquility1

Stargunner said:

I am not looking to time the market or expecting there to be a crash. I am considering retiring early within the next few years. I already have a multi asset fund and the remainder of my sipp is in 100% equity’s and cash. I could sell some of my equities and add to my existing multi asset fund, but I was also just looking at maybe adding some defensive funds like bonds to reduce my risk. There are so many different kinds of bonds that it is difficult to know what ones would be best and when I was looking at them I noticed that most seem to rise and fall at the same time as equities, just by smaller amounts. It was then that I noticed that the gilts seemed to perform better during the covid crash. 

What assets does your multi asset fund cover?

Albermarle

takesyourchances said:

Maybe something like infrastructure investment trusts

There are also infrastructure funds , like FP foresight, that hold a mixture of infrastructure IT's and funds .

older_and_no_wiser

Capital Gearing Trust (CGT) is reported as being a good bet to ride out market drops. It's classed as a wealth preservation fund.

Stargunner

tranquility1 said:

What assets does your multi asset fund cover?

It is

HSBC Global Strategy Balanced Portfolio Accumulation C

Portfolio Asset Allocation (%)

US Equity   35.49

Europe Equity   7.65

UK Equity   0.71

Japan Equity   4.04

 Asia Pac ex Japan Equity 1.93

 Emerging Market Equity 6.83

Global Government Bond 28.61

Global Corporate Bond 6.51

Property   6.12

Cash   2.12