% to each region of the world?? Challenge

kempiejon

@Venomspread3r

A] leave the FTSE All world ISA Alone & just put the extra money into my AVC pension which is BlackRock all world Ex UK (I could amend this so it's 95% All world ex UK & add 5% UK equities that they offer making it an all world.

B] continue as I am £200 into AVC all world & £200 Into my ISA which is 90% All World 10% Gold
C] put £200 into AVC & put £200 into my ISA But In different fund/etf (I'd still have 10% Gold) 

I've got a good 15 years before I want to be more conservative but I'm a little bit unsure what to do ? 

My goal was to be in a position of financial independence such that work became optional. I have taken several breaks from employment and aimed for early retirement - or at least no longer chasing maximum full time rewards.
I took the company contribution to my pensions and matched to maximise input but I focused my surplus capital to ISAs and general account. With the restriction on pensions the increasing starting age ISAs look a valuable place to park money.
I was able to fund myself from ISA investments and take a year off in my 40s. I then had a big expense in my early 50s and if my focus had been get the maximum into the pension, via AVCs of extra SIPP payments the capital wouldn't have been available to me to make those choses. I can access my pension come 55 but many will have another 2 years. Retiring before 50 was my plan but that has slipped (that gap year and big expense) by 55 achievable.

Venomspread3r

kempiejon said:

@Venomspread3r

A] leave the FTSE All world ISA Alone & just put the extra money into my AVC pension which is BlackRock all world Ex UK (I could amend this so it's 95% All world ex UK & add 5% UK equities that they offer making it an all world.

B] continue as I am £200 into AVC all world & £200 Into my ISA which is 90% All World 10% Gold
C] put £200 into AVC & put £200 into my ISA But In different fund/etf (I'd still have 10% Gold) 

I've got a good 15 years before I want to be more conservative but I'm a little bit unsure what to do ? 

My goal was to be in a position of financial independence such that work became optional. I have taken several breaks from employment and aimed for early retirement - or at least no longer chasing maximum full time rewards.
I took the company contribution to my pensions and matched to maximise input but I focused my surplus capital to ISAs and general account. With the restriction on pensions the increasing starting age ISAs look a valuable place to park money.
I was able to fund myself from ISA investments and take a year off in my 40s. I then had a big expense in my early 50s and if my focus had been get the maximum into the pension, via AVCs of extra SIPP payments the capital wouldn't have been available to me to make those choses. I can access my pension come 55 but many will have another 2 years. Retiring before 50 was my plan but that has slipped (that gap year and big expense) by 55 achievable.

So we're your Pension funds & ISA funds covering the same ground ? Ie. Both pointing at the same thing ??

Venomspread3r

aroominyork said:

I'm also underweight US - I'm sure it will benefit me, one day....   N America 45%, UK 12% (the overweight is small caps), Europe 16%, Japan 8%, Emerging markets 12%, Developed AP 8%. 64% in index funds across the portfolio, with largest allocations to index funds in N America, Europe and Japan. 

I'm presuming the other 36% is in securites ?

aroominyork

Venomspread3r said:

aroominyork said:

I'm also underweight US - I'm sure it will benefit me, one day....   N America 45%, UK 12% (the overweight is small caps), Europe 16%, Japan 8%, Emerging markets 12%, Developed AP 8%. 64% in index funds across the portfolio, with largest allocations to index funds in N America, Europe and Japan. 

I'm presuming the other 36% is in securites ?

The other 36% is in actively managed - rather than index - funds.

aroominyork

Linton said:

Venomspread3r said:

Just a hypothetical question because I'm sure I'll get the answer of "JUST USE A GLOBAL ALL WORLD CAP FUND" but if we wanted a equities global all world portfolio and there wasn't the world cap funds we have today how would you do it ? 

Id be keen to see if people have a bias etc or maybe you think a region of the world gets neglected.
Also do you think this could be done cheaply? 
For the sake of the experiment if we could keep it hedged to GBP.

So

US
UK/EUROPE
EMERGING MARKETS
PACIFIC 
JAPAN 

You personally what % would you have ? 

My growth portfolio 100% equity is:

US                                     40%
UK/EUROPE                     30%
EMERGING MARKETS    Define?
PACIFIC                            18%
JAPAN                                 9%

It does not add to 100% because your regions are incomplete.  eg Canada.  Also it is impossible to separate EM and Pacific. Where does Emerging Europe fit?  However I think the figures I have used give a reasonable picture as the %s allocated to the unclassified areas are pretty low.

The way I view regions is:

- North America (to bring in Canada)

- Developed Europe

- UK

- Japan

- Emerging markets (including Emerging Europe)

- Developed Asia Pacific (exc. Japan)

kempiejon

So we're your Pension funds & ISA funds covering the same ground ? Ie. Both pointing at the same thing ??

If you're asking if my ISA and SIPP invested similarly, no.
The ISA was built on UK shares.
The pensions were built generally using the employers' default product.

When I finally took control of all my pensions with a SIPP I used Vanguard ETFs to invest roughly as below.
USA 50%
Developed Europe ex UK 17%
Japan 10%
Developed Asia ex Japan 10%
Emerging Markets 11%
India 2%

I now add Vanguard global etf VEVE & VFEM for emerging to my ISAs each year.
In the SIPP I'm adding some fixed interest sporadically, India gets new money monthly for now. I think when the India etf gets to 5% I'll check my weightings again.

I do not currently plan to sell and rebalance/redirect my investing just more of the same.

Bostonerimus1

My answer is just replicate the cap weighting of the all world fund.

Venomspread3r

That sounds good & logical which is the opposite of what I'm doing as in mine are both pointing at global all world ..don't get me wrong they weren't I just had an All world ISA (with a little bit of gold) but as much as I appreciate being able to take advantage of My workplace AVC (saving on tax & NI) and I'll be sticking with it - it's made me massively overlap so not sure what to do 

Venomspread3r

Bostonerimus1 said:

My answer is just replicate the cap weighting of the all world fund.

At the risk of sounding an idiot how do you mean ? 

aroominyork

Bostonerimus1 said:

My answer is just replicate the cap weighting of the all world fund.

No kidding, Boston... and there was me thinking you'd suggest 100% all in one region, rotating the region each year. But I'm going to call you out on one thing: you live in the US so don't face the home bias question that UK investors, fairly, ask themselves.

For info (unless it's already mentioned in the thread), HSBC FTSE All World Index's allocations are: N America 64%, UK 4%, Europe 12%, Japan 6%, Emerging markets 8%, Develop AP 6%.