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Dumping IFA portfolio to go DIY

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  • Hoenir
    Hoenir Posts: 7,742 Forumite
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    JG1A said:
    There is a Vanguard fund called  FTSE Global All Cap Index Fund and it includes global small caps.  Its charges are 0.23 ocf and Trans. costs about 0.04. Performance since Nov 2016 (inception date) is up over 100% similar performance to your IFA portfolio.
    Back to basics…my original objective was to replace my high cost ifa managed pf with a low cost simplified diy pf which could offer similar returns at a similar, but not higher, level of risk.
    When you find this PF. Let us all know. As you'll discover when everybody adopts the same idea. Any tangible benefit eventually disappears. As the momentum drives future returns downwards. The smart money has already moved on. 
  • boingy
    boingy Posts: 1,916 Forumite
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    JG1A said:
    There is a Vanguard fund called  FTSE Global All Cap Index Fund and it includes global small caps.  Its charges are 0.23 ocf and Trans. costs about 0.04. Performance since Nov 2016 (inception date) is up over 100% similar performance to your IFA portfolio.
    Yes, I’ve been looking at that as it happens.

    Thanks everyone, I think I’m starting to go round in circles here….and the more I read here and on various forums and sites like monevator the more fund suggestions I end up looking at and my notes get longer. Back to basics…my original objective was to replace my high cost ifa managed pf with a low cost simplified diy pf which could offer similar returns at a similar, but not higher, level of risk. I’m not knowledgable enough about global markets and economics, nor do I have the inclination, to take on responsibility for managing allocations across a number of funds. Therefore I’m concluding that 100% in an all world tracker fund, either HSBC All World or Vanguard Global All Cap, or possibly 90% in one of those plus 10% in L&G Global100 might work best for me.
    The important thing is that you don't feel obliged to use more than one fund unless you have a solid reason to do so. The global fund of funds type things are already diversified. It's fine if you want fiddle with the balance but do it for a good reason rather than just because you think you ought.
  • boingy said:
    JG1A said:
    There is a Vanguard fund called  FTSE Global All Cap Index Fund and it includes global small caps.  Its charges are 0.23 ocf and Trans. costs about 0.04. Performance since Nov 2016 (inception date) is up over 100% similar performance to your IFA portfolio.
    Yes, I’ve been looking at that as it happens.

    Thanks everyone, I think I’m starting to go round in circles here….and the more I read here and on various forums and sites like monevator the more fund suggestions I end up looking at and my notes get longer. Back to basics…my original objective was to replace my high cost ifa managed pf with a low cost simplified diy pf which could offer similar returns at a similar, but not higher, level of risk. I’m not knowledgable enough about global markets and economics, nor do I have the inclination, to take on responsibility for managing allocations across a number of funds. Therefore I’m concluding that 100% in an all world tracker fund, either HSBC All World or Vanguard Global All Cap, or possibly 90% in one of those plus 10% in L&G Global100 might work best for me.
    The important thing is that you don't feel obliged to use more than one fund unless you have a solid reason to do so. The global fund of funds type things are already diversified. It's fine if you want fiddle with the balance but do it for a good reason rather than just because you think you ought.
    My thinking on the LG100 idea was to overweight myself a little on the best companies in the world… I have some time yet to make a final decision, it will take quite a while to liquidate our existing isas and transfer them to one or more platforms. I may yet just stick with one fund, or have one HSBC for my wife’s and VG (and maybe LG) for me (what I referred to as my port is in fact split across two of us)
  • aroominyork
    aroominyork Posts: 3,346 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hoenir said:
    JG1A said:
    There is a Vanguard fund called  FTSE Global All Cap Index Fund and it includes global small caps.  Its charges are 0.23 ocf and Trans. costs about 0.04. Performance since Nov 2016 (inception date) is up over 100% similar performance to your IFA portfolio.
    Back to basics…my original objective was to replace my high cost ifa managed pf with a low cost simplified diy pf which could offer similar returns at a similar, but not higher, level of risk.
    When you find this PF. Let us all know. As you'll discover when everybody adopts the same idea. Any tangible benefit eventually disappears. As the momentum drives future returns downwards. The smart money has already moved on. 
    That's bullsh1t, Hoenir. A DIY index fund achieves both objectives: similar performance and lower cost.
  • Qyburn
    Qyburn Posts: 3,621 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    Hoenir said:

    When you find this PF. Let us all know. As you'll discover when everybody adopts the same idea. Any tangible benefit eventually disappears. As the momentum drives future returns downwards. The smart money has already moved on. 
    We've already seen that a couple of off the shelf retail funds did in fact return at least the same as the IFA crafted portfolio over the period chosen to illustrate the failings of the Vanguard LS series. 

    Sure .. "past performance is no guarantee.." but that cuts both ways, the IFA portfolio could tank next year. 
  • dunstonh
    dunstonh Posts: 119,722 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    We've already seen that a couple of off the shelf retail funds did in fact return at least the same as the IFA crafted portfolio over the period chosen to illustrate the failings of the Vanguard LS series. 
    The period was set to the start of data.  Which, in this case, was the launch date of the youngest fund.  The VLS funds were used in direct response to a poster that suggested the op use VLS60 or VLS80.  Not to highlight failings in VLS but to highlight failings by the poster recommending them to the OP.

    Sure .. "past performance is no guarantee.." but that cuts both ways, the IFA portfolio could tank next year. 
    Given it it mostly tracker with a tilt, if it does, then the alternatives would as well.    
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    Hoenir said:
    JG1A said:
    There is a Vanguard fund called  FTSE Global All Cap Index Fund and it includes global small caps.  Its charges are 0.23 ocf and Trans. costs about 0.04. Performance since Nov 2016 (inception date) is up over 100% similar performance to your IFA portfolio.
    Back to basics…my original objective was to replace my high cost ifa managed pf with a low cost simplified diy pf which could offer similar returns at a similar, but not higher, level of risk.
    When you find this PF. Let us all know. As you'll discover when everybody adopts the same idea. Any tangible benefit eventually disappears. As the momentum drives future returns downwards. The smart money has already moved on. 
    That's bullsh1t, Hoenir. A DIY index fund achieves both objectives: similar performance and lower cost.
    If reread my response properly.  The initials PF stands for portfolio.  To me a portfolio is a collection not a singular item. 


  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 21 March 2024 at 11:01PM
    Qyburn said:
    Hoenir said:

    When you find this PF. Let us all know. As you'll discover when everybody adopts the same idea. Any tangible benefit eventually disappears. As the momentum drives future returns downwards. The smart money has already moved on. 
    We've already seen that a couple of off the shelf retail funds did in fact return at least the same as the IFA crafted portfolio over the period chosen to illustrate the failings of the Vanguard LS series. 

    Sure .. "past performance is no guarantee.." but that cuts both ways, the IFA portfolio could tank next year. 
    I'd suggest that the IFA portfolio would cope with any market turbulence better. Certainly be risk adjusted. Which in itself limits the upside as well. The performance that actually matters is meeting your personal objectives, i.e. long term.  Doesn't actually matter how you get there. Don't get caught up in the short termism that social media promotes. The basic rules of investing are well established and documented. Ignore them at your peril. Every investment cycle eventually hits the buffers. Someone is always left without a chair when the music stops. 


  • aroominyork
    aroominyork Posts: 3,346 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hoenir said:
    Hoenir said:
    JG1A said:
    There is a Vanguard fund called  FTSE Global All Cap Index Fund and it includes global small caps.  Its charges are 0.23 ocf and Trans. costs about 0.04. Performance since Nov 2016 (inception date) is up over 100% similar performance to your IFA portfolio.
    Back to basics…my original objective was to replace my high cost ifa managed pf with a low cost simplified diy pf which could offer similar returns at a similar, but not higher, level of risk.
    When you find this PF. Let us all know. As you'll discover when everybody adopts the same idea. Any tangible benefit eventually disappears. As the momentum drives future returns downwards. The smart money has already moved on. 
    That's bullsh1t, Hoenir. A DIY index fund achieves both objectives: similar performance and lower cost.
    If reread my response properly.  The initials PF stands for portfolio.  To me a portfolio is a collection not a singular item. 


    So how complicated must your investments be to qualify as a 'portfolio'? Are you saying that Bostonerimus, with his couple of index funds, does not have a portfolio? Of course he does, and if you put 100% of your money into a global index fund (or SMT) that would equally quality as a portfolio.

  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    Hoenir said:
    Hoenir said:
    JG1A said:
    There is a Vanguard fund called  FTSE Global All Cap Index Fund and it includes global small caps.  Its charges are 0.23 ocf and Trans. costs about 0.04. Performance since Nov 2016 (inception date) is up over 100% similar performance to your IFA portfolio.
    Back to basics…my original objective was to replace my high cost ifa managed pf with a low cost simplified diy pf which could offer similar returns at a similar, but not higher, level of risk.
    When you find this PF. Let us all know. As you'll discover when everybody adopts the same idea. Any tangible benefit eventually disappears. As the momentum drives future returns downwards. The smart money has already moved on. 
    That's bullsh1t, Hoenir. A DIY index fund achieves both objectives: similar performance and lower cost.
    If reread my response properly.  The initials PF stands for portfolio.  To me a portfolio is a collection not a singular item. 


    So how complicated must your investments be to qualify as a 'portfolio'? Are you saying that Bostonerimus, with his couple of index funds, does not have a portfolio? Of course he does, and if you put 100% of your money into a global index fund (or SMT) that would equally quality as a portfolio.

    Ask @bostonerimus . Not me. I've an inkling as to what his response will be. With regards to his personal financial situation.  

    By  global index fund I assume you are referring to a multi asset fund.  Well yes. That has a portfolio within it. 

    This is simply derailing the OP's thread now and the approach being investigated. Totally off tangent. Let's just park it here. 
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