ii 'Model Portfolios'

BlobCore

Hi folks, I hold my SIPP with ii and currently hold around;
 50%in VWRP, 
15% each in HSBC Global dynamic and VLS60
10% in a mix of global corporate and UK Gilts 
10% in commodity and property ETFs.

Admittedly a rather clumsy allocation so was looking at the ii model portfolios as an alternative, the low cost growth version  https://www.ii.co.uk/model-portfolios#low-cost-growth
I set this up as a watch list and ran the X-ray over it. The equity portion seems well distributed between high, mid and low cap, growth and value, so far so good! But look at the geographical spread; over 90% in greater Europe with 37% in UK, only around 6% in US equities.

Anyone got views on this allocation? Seems an extreme home bias at the expense of US. All thoughts appreciated.

Linton

I dont see where you got your 6% US from.

L&G Global100 is 73% US equity, that is 10% of the portfolio on its own
iShares MSCI World is 68% US equity another 10% of the portfolio
Vanguard global SMall Cap 59% - 5.9% of portfolio
+ the 5%Vanguard US 
US is about 30% of the portfolio.

BlobCore

I added all the investments to an ii watchlist in the correct proportions the. Used their ‘analysis’ option. Maybe I got a decimal point in the wrong place somewhere? Will check and get back to you. 

Thanks for looking!

Albermarle

You can't always trust these analysis tools.

EthicsGradient

BlobCore said:

I added all the investments to an ii watchlist in the correct proportions the. Used their ‘analysis’ option. Maybe I got a decimal point in the wrong place somewhere? Will check and get back to you. 

Thanks for looking!

Easy to get something wrong, I'd think - to add a stock to the list, you have to give the number of shares/units, and the price paid (which may be in pence or pounds), rather than the current value. So you have to do a division sum for each one. A simple check is to see if the end total of price paid, and current value, both come to £20,000 (assuming you use the amounts in the model portfolio). I get, for it:
Greater Europe 41.68%
of which UK 26.31%
US 40.9%

A thought on where the error could be: the 2 items priced in pounds, not in pence, are the Vanguard Dev EU and FTSE 250 funds. If you've used 100 times the quantity for each of those that you should have, that would explain the overallocation to Europe and UK (or maybe just 10 times for each?)

george4064

If you doubt the output from an online analysis tool you should should calculate the overall exposure using a good old spreadsheet and sourcing the numbers from the respective factsheets.

BlobCore

Glad I checked! Ethics is dead right, some priced in £ some in pence. Analysis looks far more sensible now!
Thanks for the assist and thank goodness I'm only playing with a watchlist for now!

davethebb

Blobcore, any chance you post screenshots of the portfolio's performance over 6mth, 1yr and 3 yrs. I have been thinking of using the same portfolio. Dave.

EthicsGradient

Top 10 Holdings Breakdown %

Holding	3M	6M	1 Yr	3 Yr Ann.	5 Yr Ann.	YTD	Weight
Portfolio	0.72	0.03	6.33	9.45	8.69	-2.48
Benchmark	-1.87	-3.16	6.40	11.81	10.83	-6.18
FIL INVESTMENT SERVICES(UK)LIMITED INDEX UK P ACC NAV	0.86	2.94	8.74	4.09	4.69	0.67	19.66
ISHARES III PLC CORE MSCI WORLD UCITS ETF USD ACC GBP	0.56	-1.52	7.90	12.56	11.26	-5.03	15.46
LEGAL & GENERAL(UNIT TRUST MNGRS) L&G GLOBAL 100 INDEX TRUST(I)ACC	2.17	5.72	15.83	16.94	14.53	-1.28	14.69
VANGUARD INVESTMENT SERIES PLC GLOBAL SMALL-CAP INDEX GBP ACC	-0.36	-7.18	-3.31	8.76	7.98	-7.00	10.08
FIL INVESTMENT SERVICES(UK)LIMITED INDEX EMERGING MARKETS P ACC NAV	-3.85	-6.09	-9.93	3.19	4.67	-5.79	9.88
VANGUARD INVESTMENT SERIES PLC GLOBAL BOND INDEX GBP ACC HGD	-7.06	-8.59	-8.24	-0.71	0.30	-8.73	5.08
WISDOMTREE ISSUER ICAV WISDOMTREE ENH COMDTY UCITS ETF GBP ACC	19.70	25.16	41.11	17.34	-	27.40	5.08
VANGUARD FUNDS PLC FTSE DEVELOPED EU EX-UK UCTS ETF GBP ACC	-3.78	-7.38	-0.89	-	-	-9.09	5.07
VANGUARD FUNDS PLC FTSE 250 UCITS ETF GBP DIS	-4.89	-9.35	-6.55	3.53	3.33	-11.02	5.05
VANGUARD INVESTMENTS UK LTD U S EQUITY INDEX GBP ACC	-2.21	-4.02	6.28	14.04	13.21	-7.22	5.02

That's what it shows me, and I think those proportions are all correct (hope formatting looks OK on other screens - I don't know whether the links the copy  has put in will work). I don't know what it chose as the Benchmark, either - that just appears without explanation.

davethebb

Thank you Ethicsgradient.