2 Sipp Funds Unsure about

ColdIron

This highlights an advantage to an inexperienced investor of a professionally built multi-asset fund over constructing a bespoke portfolio

As the components, in this case the more volatile Small Cos and EM, are tucked away behind the blended overall performance of the fund as a whole, people are less tempted (and less able) to panic and alter their allocations

9 months is too short a time to reach a conclusion on a 10 year holding. Volatile components in volatile times will be, well, volatile

Neversurrender

ColdIron said:

This highlights an advantage to an inexperienced investor of a professionally built multi-asset fund over constructing a bespoke portfolio

As the components, in this case the more volatile Small Cos and EM, are tucked away behind the blended overall performance of the fund as a whole, people are less tempted (and less able) to panic and alter their allocations

9 months is too short a time to reach a conclusion on a 10 year holding. Volatile components in volatile times will be, well, volatile

Thanks for replying, is was created by an IFA

dunstonh

Neversurrender said:

ColdIron said:

This highlights an advantage to an inexperienced investor of a professionally built multi-asset fund over constructing a bespoke portfolio

As the components, in this case the more volatile Small Cos and EM, are tucked away behind the blended overall performance of the fund as a whole, people are less tempted (and less able) to panic and alter their allocations

9 months is too short a time to reach a conclusion on a 10 year holding. Volatile components in volatile times will be, well, volatile

Thanks for replying, is was created by an IFA

I think what Coldiron is saying is that had you bought a multi-asset fund, you wouldn't see the different performances of the underlying assets.  You would just have one fund with one unit price.      Whereas a portfolio of funds gives you 8-15 funds, each with its individual performance available to see.    Each fund will perform differently at different times.    Sometimes the one that is bottom in one period will be top in the next.    Think of each fund as a different ingredient but its the sum of all the ingredients that matter.

Sometimes, when you are inexperienced in something, having more information available to you can be more damaging than good.   Less transparency and less information could be better.

ColdIron

Neversurrender said:

ColdIron said:

This highlights an advantage to an inexperienced investor of a professionally built multi-asset fund over constructing a bespoke portfolio

As the components, in this case the more volatile Small Cos and EM, are tucked away behind the blended overall performance of the fund as a whole, people are less tempted (and less able) to panic and alter their allocations

9 months is too short a time to reach a conclusion on a 10 year holding. Volatile components in volatile times will be, well, volatile

Thanks for replying, is was created by an IFA

The point still stands. Did your advisor not discuss the construction with you? The advisor is the person that knows your circumstances and objectives. If you are concerned about it you should discuss it with them, that is one of the reasons that you are paying for advice

Neversurrender

dunstonh said:

Neversurrender said:

ColdIron said:

This highlights an advantage to an inexperienced investor of a professionally built multi-asset fund over constructing a bespoke portfolio

As the components, in this case the more volatile Small Cos and EM, are tucked away behind the blended overall performance of the fund as a whole, people are less tempted (and less able) to panic and alter their allocations

9 months is too short a time to reach a conclusion on a 10 year holding. Volatile components in volatile times will be, well, volatile

Thanks for replying, is was created by an IFA

I think what Coldiron is saying is that had you bought a multi-asset fund, you wouldn't see the different performances of the underlying assets.  You would just have one fund with one unit price.      Whereas a portfolio of funds gives you 8-15 funds, each with its individual performance available to see.    Each fund will perform differently at different times.    Sometimes the one that is bottom in one period will be top in the next.    Think of each fund as a different ingredient but its the sum of all the ingredients that matter.

Sometimes, when you are inexperienced in something, having more information available to you can be more damaging than good.   Less transparency and less information could be better.

Hi Thanks,

Yes I fully understood what ColdIron was stating thanks, basically if its all tucked under the bonnet out of site then you won't notice if their is anything worrying happening, or worrying to an amateur such as myself :-)

Problem is I would love nothing more than to put every fund into one multi asset, but that would involve selling down all my funds which are down and locking in my losses.

All I really need to know as per my original question is

Are IFSL Marlborough Special sitts P Acc

And

JPM emerging markets generally good funds to own.

Thanks your help is greatly appreciated

Neversurrender

ColdIron said:

Neversurrender said:

ColdIron said:

This highlights an advantage to an inexperienced investor of a professionally built multi-asset fund over constructing a bespoke portfolio

As the components, in this case the more volatile Small Cos and EM, are tucked away behind the blended overall performance of the fund as a whole, people are less tempted (and less able) to panic and alter their allocations

9 months is too short a time to reach a conclusion on a 10 year holding. Volatile components in volatile times will be, well, volatile

Thanks for replying, is was created by an IFA

The point still stands. Did your advisor not discuss the construction with you? The advisor is the person that knows your circumstances and objectives. If you are concerned about it you should discuss it with them, that is one of the reasons that you are paying for advice

No longer using him, for reasons I won't go into now, as I dont want this thread to go off on a tangent.

And no he discussed absolutely nothing about the funds he was investing in.

ColdIron

Neversurrender said:

dunstonh said:

Neversurrender said:

ColdIron said:

This highlights an advantage to an inexperienced investor of a professionally built multi-asset fund over constructing a bespoke portfolio

As the components, in this case the more volatile Small Cos and EM, are tucked away behind the blended overall performance of the fund as a whole, people are less tempted (and less able) to panic and alter their allocations

9 months is too short a time to reach a conclusion on a 10 year holding. Volatile components in volatile times will be, well, volatile

Thanks for replying, is was created by an IFA

I think what Coldiron is saying is that had you bought a multi-asset fund, you wouldn't see the different performances of the underlying assets.  You would just have one fund with one unit price.      Whereas a portfolio of funds gives you 8-15 funds, each with its individual performance available to see.    Each fund will perform differently at different times.    Sometimes the one that is bottom in one period will be top in the next.    Think of each fund as a different ingredient but its the sum of all the ingredients that matter.

Sometimes, when you are inexperienced in something, having more information available to you can be more damaging than good.   Less transparency and less information could be better.

Problem is I would love nothing more than to put every fund into one multi asset, but that would involve selling down all my funds which are down and locking in my losses.

This may not be as bad it might seem. The assets that you buy will be down on the year as well

Albermarle

Problem is I would love nothing more than to put every fund into one multi asset, but that would involve selling down all my funds which are down and locking in my losses.

Locking in losses, is only really when you cash out investments that have made a loss, and then put the money in a savings account for example.

If you just change investments for something similar ( ish) then you are not locking in losses.

So for example if your overall portfolio was down an average of 10% so far this year, and you sold the whole portfolio and then bought a multi asset fund that had gone down by a similar amount, then you would not really be locking in any losses.
It is a bit of a crude way of looking at it, but hopefully it makes the basic point.

dunstonh

Neversurrender said:

ColdIron said:

Neversurrender said:

ColdIron said:

This highlights an advantage to an inexperienced investor of a professionally built multi-asset fund over constructing a bespoke portfolio

As the components, in this case the more volatile Small Cos and EM, are tucked away behind the blended overall performance of the fund as a whole, people are less tempted (and less able) to panic and alter their allocations

9 months is too short a time to reach a conclusion on a 10 year holding. Volatile components in volatile times will be, well, volatile

Thanks for replying, is was created by an IFA

The point still stands. Did your advisor not discuss the construction with you? The advisor is the person that knows your circumstances and objectives. If you are concerned about it you should discuss it with them, that is one of the reasons that you are paying for advice

No longer using him, for reasons I won't go into now, as I dont want this thread to go off on a tangent.

And no he discussed absolutely nothing about the funds he was investing in.

In which case, you should adjust the portfolio.    When you use a multi-asset fund, the fund manager/fund house will make changes periodically.   It could be rebalancing, it could be fund changes.    When you are in a portfolio of single sector funds, those individual funds need rebalancing and periodically changing (more so if managed funds or focused/niche funds that may do well in a certain part of the economic cycle but not another).  The adviser is control of making those changes.  So, if you no longer have your adviser, then the portfolio is no longer being adjusted to their strategy.    

And no he discussed absolutely nothing about the funds he was investing in.

The vast majority of consumers are not interested beyond knowing there is a structure and process.  Their goals and objectives are their priority.

Neversurrender

Thanks @Albermarle and @Coldiron.

To be honest I did ponder the idea of selling down most of the funds in my portfolio and putting the money into my existing VLS 80.

But I would keep my Vanguard Dev world ex uk, and my L&G US index I think due to the UK bias in the VLS 80.

Trouble is the VLS 80 isn't down as much as the IFSL Marlborough, so am I right in thinking I would make a loss by switching the funds from IFSL Marlborough to VLS 80?

Thanks for your continued help guys