2 Sipp Funds Unsure about

ColdIron

Neversurrender said:

Trouble is the VLS 80 isn't down as much as the IFSL Marlborough

That's just one element of your portfolio (and a small one at that), what about the rest? You need to stand back and consider them as a whole

Albermarle

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?

Have some of the other funds you have gone down less than VLS 80? How does the average drop of the portfolio compare with VLS80?

Neversurrender

OK

Portfolio as it stands

Capital gearing down 7.53%

Vanguard ftse 250 ucits etf  down 17.02%

Ifsl marlborough  down 29.83%

Royal london sustainable leaders down 13.58%

Vanguard lifestrategy 80 down 2.18%

Royal london sustainable Diversified C Acc down17.25%

L&g us index down 3.22%

Vanguard ftse dev world ex uk index £ down by 6.39%

JPM emerging markets down 15.67%

HSBC Pacific index Acc C down 10.73%

Baillie Gifford International B Acc down 13.98%

Baillie Gifford Pacific B Acc down 17.66%

Capital Gearing opened in July

VLS 80 opened in June

Vanguard FTSE 250 opened in March

All the others opened in January

 

aroominyork

dunstonh said:

And Emerging markets would be no more than around 5% for most people unless they are at the higher end of the risk scale.

Does that mean people using a global cap weighted index fund, where emerging markets constitute 10-11%, are high risk investors?

YellowStarling

Another way to approach it is:

As an example, let's assume your initial investment in JPM EM was £10k.  And it's now down circa 15% (I'm rounding the %s you've provided for ease of illustration), or standing at £8.5k.

If - hypothetically - you came into possession of £8.5k today, and you didn't already have £8.5k in JPM EM, and assuming your investing objectives are otherwise unchanged, would you invest the £8.5k in JPM EM today? 

If so (you think it has a better chance than others for rebounding/growing in the future, or appropriate for your investment needs), then leave your £8.5k where it is.  If not, then (assuming for ease that there are no outside factors like timing on losses for CGT uses, etc.) sell your JPM EM holding and - despite crystalising a £1.5k "loss", your 8.5k will be available to invest in a fund you think is better placed for future performance above JPM EM and/or that it's more appropriate for your needs.

(The same above is applicable to the Marlborough fund, and any other existing investments).

FWIW, I hold JPM EM in an active portfolio of mine though the majority of my investments elsewhere (pension, etc.) are passive and/or global funds.

dunstonh

aroominyork said:

dunstonh said:

And Emerging markets would be no more than around 5% for most people unless they are at the higher end of the risk scale.

Does that mean people using a global cap weighted index fund, where emerging markets constitute 10-11%, are high risk investors?

Risk can be subjective but the greater the weighting towards EM, the higher the risk of the portfolio.   100% equities with 10% EMs is typically high risk on most scales (would generally be 5/5 or 9/10)

Altior

A visual long term perspective.

Albermarle

Capital Gearing opened in July

VLS 80 opened in June

Vanguard FTSE 250 opened in March

Probably better to see how these funds would have performed on the same time scale as the others since January for a fair comparison.

CGT is about the same - 7% down
VLS80 is about 8% down since January 
FTSE 250 about 25% 

So back of a fag packet again, it looks like your portfolio, since January is down in the region of 12 to 15 %?
Whilst VLS80 is only down 8%.
So based on this very rough calculation, selling up the rest and buying VLS80 would be locking in some losses (5%)?

However this not at all a proper analysis.

Neversurrender

Albermarle said:

Capital Gearing opened in July

VLS 80 opened in June

Vanguard FTSE 250 opened in March

Probably better to see how these funds would have performed on the same time scale as the others since January for a fair comparison.

CGT is about the same - 7% down
VLS80 is about 8% down since January 
FTSE 250 about 25% 

So back of a fag packet again, it looks like your portfolio, since January is down in the region of 12 to 15 %?
Whilst VLS80 is only down 8%.
So based on this very rough calculation, selling up the rest and buying VLS80 would be locking in some losses (5%)?

However this not at all a proper analysis.

Thanks Albermarle thats exactly the help this Thick beginner needed, thanks for your kind efforts

Neversurrender

Albermarle said:

So based on this very rough calculation, selling up the rest and buying VLS80 would be locking in some losses (5%)?

However this not at all a proper analysis.

Oh and further to my last reply, you were spot on with your fag packet fund is indeed down by around 13%

Thanks again for your excellent help