A little confused about fund's equity allocation %

Sea_Shell

Good Morning.

I'm a little confused and I hope someone can point out the obvious that I'm probably missing!!!

In our ISA's we hold units of the 7IM AAP Balanced C Acc, via Fidelity.

Historically this fund has had approximately 56% of its holding in Equities.    It's a Mixed asset 20-60% equity class.

As at 31/8/21, it would appear that Fidelity are now showing the fund as being only 13.4% stocks, but the 7IM factsheet (again dated 31/8/21) is showing 50%.

7IM AAP Balanced Fund C Acc Portfolio Overview | GB00B2PB3794 | Fidelity
AAP Balanced PDF Factsheet (fundslibrary.co.uk)

I think the 7IM factsheet refers to their "long-term strategy" rather than an actual of where the fund currently is, but am I reading that current Portfolio breakdown correctly?

Which information is the most accurate, if I wanted to use it for rebalancing purposes.     Our other fund we hold is 100% equities, so we know where we stand with that one!

Many thanks.

masonic

The Fidelity site is showing the fund as currently being 30% cash. The top 10 holdings percentages match between Fidelity and the factsheet, so I would guess Fidelity has the correct portfolio data and there is currently a significant deviation from the Strategic Asset Allocation outlined in the factsheet. Perhaps cash holdings are just temporary (paying AMC on the 30% cash on a more permanent basis is not good value).

Albermarle

If you see surprising info at one platform , sometime it is worth a check at another .
I looked at HL but the info is less than illuminating ( the portfolio breakdown is often poor with HL) 
7IM AAP Balanced (Class C) Accumulation Fund Analysis (hl.co.uk)

masonic

Albermarle said:

If you see surprising info at one platform , sometime it is worth a check at another .
I looked at HL but the info is less than illuminating ( the portfolio breakdown is often poor with HL) 
7IM AAP Balanced (Class C) Accumulation Fund Analysis (hl.co.uk)

AJ Bell and Fidelity seem to be in agreement regarding % in equities vs bonds vs cash: https://www.youinvest.co.uk/market-research/FUND:B2PB379

I'm not sure how HL have come up with a -25% cash allocation!

Sea_Shell

Albermarle said:

If you see surprising info at one platform , sometime it is worth a check at another .
I looked at HL but the info is less than illuminating ( the portfolio breakdown is often poor with HL) 
7IM AAP Balanced (Class C) Accumulation Fund Analysis (hl.co.uk)

Yes, I had looked at that one...and was none the wiser! 😉

Sea_Shell

masonic said:

The Fidelity site is showing the fund as currently being 30% cash. The top 10 holdings percentages match between Fidelity and the factsheet, so I would guess Fidelity has the correct portfolio data and there is currently a significant deviation from the Strategic Asset Allocation outlined in the factsheet. Perhaps cash holdings are just temporary (paying AMC on the 30% cash on a more permanent basis is not good value).

We hold our own cash float, so yes, we don't need another 30% here (and paying a fee, like you say).

How would I know if it was a strategic temporary move by the fund manager?

masonic

Sea_Shell said:

masonic said:

The Fidelity site is showing the fund as currently being 30% cash. The top 10 holdings percentages match between Fidelity and the factsheet, so I would guess Fidelity has the correct portfolio data and there is currently a significant deviation from the Strategic Asset Allocation outlined in the factsheet. Perhaps cash holdings are just temporary (paying AMC on the 30% cash on a more permanent basis is not good value).

We hold our own cash float, so yes, we don't need another 30% here (and paying a fee, like you say).

How would I know if it was a strategic temporary move by the fund manager?

The data the platforms are using is a month-end snapshot. It will be updated at the end of this month and may well look quite different.

Some fund managers include some commentary on how they are positioning the fund. I haven't seen anything like that for this particular fund, but the most likely explanation for the discrepancy is that the snapshot was taken at an unfortunate time and doesn't reflect the normal allocation of the fund.

Sea_Shell

We were planning to put another £20k into this fund later this month, based on its previous equity allocation.

Now not sure whether to stick to plan A, and invest here this month.  Wait until next month, to see if it was a temporary shift.  Or pick another fund?

But what...the choice is bewildering!

I'm keen to avoid kneejerk reactions, so unlikely we'll be looking to move the whole fund somewhere else.  Just the new money, maybe.

threlkeld53

@Sea_Shell

The FT site shows approx 50% in equities.

On iWeb's site, the breakdown is as follows:-
USA 15%,   UK 12.5%,   Global 9%,   Emerging Mkts 7%,   Europe & Japan 3.5% each.
So about 50% equities in total.

Sea_Shell

threlkeld53 said:

@Sea_Shell

The FT site shows approx 50% in equities.

On iWeb's site, the breakdown is as follows:-
USA 15%,   UK 12.5%,   Global 9%,   Emerging Mkts 7%,   Europe & Japan 3.5% each.
So about 50% equities in total.

It appears the FT information is from 31/5/21, so is lagging behind Fidelity, if this is where you're looking.

https://markets.ft.com/data/funds/uk/compare

I-Web's chart appears to be bang up to date as of 3rd September, so if correct, then maybe it was a temporary blip?

Sea_Shell

My gut tells me to trust the "long term" strategy of the fund, rather than this "snapshot", if that's what it is.

I'd be interested in @dunstonh 's take on the situation (if they wish to comment of course 😉)