All Star Manager Portfolio

FATHEROFTWO_2

Hi Folks I havnt contributed to this thread for a couple of weeks but as the markets progress I have had time to consider my situation and am reluctant to commit a lot of new money to the stock market.

I have a stocks and Share ISA with Legal and general (all share tracker)
Current value is 20K
This fund isnt a ball of fire but I have made some considerable gains as I have used it as a savings vehicle over the past 5 years and the markets have done quite nicely.
I can still use about 5K I think to fill it for this financial year.

It has the facility to be used as a money market with the eventual use of purchasing stocks and shares
I have thought of topping up to 25K either in cash or s&s and then using this amount to transfer out of L&G to Hargreaves and lansdown account purchasing my previously mentioned choices of funds.That way at least I am the author of my own destiny in fund choice rather than a mediocre tracker.
Could I wait till 7th april and transfer from isa wrapper to my own selection of funds with hargreaves lansdown in the new financial year AND still retaing the isa tax wrapper with my selection of chosen funds?.

Would it be wise to use the money market element and leave it as that when i transfer and can i use the cash element to purchase FUNDS in the new tax year still retained within the OLD ISA wrapper ?

jamesd

What I'm doing at HL is using BlackRock UK Absolute Alpha as a virtual cash fund for money that I don't want placed in more volatile investments, then drip feeding from there into others. It's more risky than cash but I'm willing to take risk in exchange for a potentially greater return.

You could wait but I think that HL is still running their offer where they pay the transfer fee for funds transferred as the fund instead of cash. If so that would favor at least starting the transfer process this tax year. So long as your request is postmarked this year they would probably honour the deal on the transfer, but more certain if it arrives with them before then.

You can do a mixed cash and fund transfer without trouble.

Given that, depositing in L&G and simultaneously sending off the transfer request to HL looks like a better option than waiting.

FATHEROFTWO_2

Hi Ive resurected this thread for opinion on a the bonds again.

I have looked at corporate bonds and sticking with my criteria .the following bonds I have narrowed down previously

Invesco perp corp bonds yielding 5.06 per cent express rated as 3 star

New star sterling bond yielding 5.7 percent they have taken a bit of a tumble recently and are rated at Express 1 star

MG corporate bond 4.5 percent yield express rated as 3 star
However

Baillie gifford inv grade bond B (corporate bond) 8 percent yield express rated as 1 star

Now invesco perp euro high yield (global bond) appears more risky and is yielding only 7.7 percent

Another one is threadneedle high yield bond (listed as other bond with higher risk attached to the bonds risk rating)yielding 7.34 percent

Is their any reason why I SHOULDNT invest in the one star Baillie Gifford inv grade bond B as it is a corporate bond and SHOULD have a lower risk.Rather than invest in the riskier "HIGH YIELD BONDS" listed above ?

Looking at the New star sterling bond it doesnt have much going fot it just now.

Any opinions in the way to go with investing in bonds or ones to consider or AVOID?

I can work out the other investments.Its the bonds that I have difficulty with.
I remember someone saying you should look at the HIGH yielding ones some time back
Any thoughts.?

Thanks again

FATHEROFTWO_2

Hi all I have resurected this thread to invite comments.

The last variation of the portfolio I invested £25000 split as aforesaid into varying sectors and asset alocations.

Overall I am down over 7K equating to 29 percent loss on this portfolio.

I dont think any of us could have predicted what lay ahead when I first posted this thread.
With the recession I know that a large percentage is factored in but I would expect further drops.

I am keen to keep myself invested in equities as I firmly believe that moving wholely into cash would be a bad move at this time.

My thoughts are to invest into funds that carry a reasonable yield as eventually these are the ones that are undervalued and will lead us out of the recession eventually.

My thoughts and gut instinct is to choose Invesco Perp high income by Neil Woodford due to his experience and his fund has performed better than most.
Its yielding 4.66 percent just now and is big named companies like tesco ,drax national grid and various tobbaco companies.
I cant seeing them all going out of business.

I am considering selling my funds from the following companies which have low yield and have performed poorly than most these are.

Artemis Global Growth
Artemis High Income
Artemis income (Not sure)
Baillie gifford inv grade bond A
Invesco perp european high yield
MG global basics
Mg global Leaders
Neptune global equity
old mutual select mid cap
threadneedleuk mid cap.

My thoughts are to lower my exposure to global risk and mid cap companies which may be impacted worse by the recession.

Like many of you im looking towards defensive funds with a view to be well placed for recovery and paying a decent dividend yield.

I have an account with hargreaves lansdown and I am not sure if I can just ask them to liquidate these funds without some sort of penelty but I intend to reinvest the whole sum into Inv Perp high income.

Does anyone have any views or comments on my tactics and how I should approach the subject.

Does H/L incur a fee for doing this ?

FATHEROFTWO_2

No takers then

getthemax

Well I'll respond then. :A

I'm also a big fan of Neil Woodford and the High Income and Income Funds. I couldn't say if cashing in your other funds is a good idea or not, that's your call.

One thing you might like to consider is drip feeding into the High Income fund on a monthly basis.

I have a similar problem with my SIPP, and recently cashed in some poorly performing funds and moved them into 2.5% 2016 index linked gilts, but IF inflation drops as is likely that may not have been such a smart move. I already have a sizeable holding of the High Income Fund. I also hold quite a chunk in Fidelity Cash Fund and am cashing that in, so have an interesting problem on how to re-invest that wisely. Japanese bonds or US T-bonds have been recommended to me, and apparently Vanguard do good funds in those areas but I haven't checked them out yet.

purch

Does H/L incur a fee for doing this ?

If you are just switching between funds held with them...then no.

They make enough money off the trail commission.

purch

Vanguard do good funds in those areas but I haven't checked them out yet.

I think Vanguard Investments are a U.S. Mutual Fund provider. Can you hold these in a U.K. SIPP ?

FATHEROFTWO_2

Thanks Im looking to baton downn the hatches but dont want to miss out on any rally.

If I cash in the more risky funds and take a loss on them then immediately reinvest into Invesco perp High Income I believe that these are one of the safer funds and they pay a dividend yield.

That way I will avoid much of the volitility.The Invesco fund may take longer to recover but hopefully it will be more consistent.

I presume when you are refering to the high income funds you are refering to this one rather than the Artemis High income as I believe that is a a part high yield bond fund which is a bit more risky

getthemax

FATHEROFTWO wrote: »

Thanks Im looking to baton downn the hatches but dont want to miss out on any rally.

If I cash in the more risky funds and take a loss on them then immediately reinvest into Invesco perp High Income I believe that these are one of the safer funds and they pay a dividend yield.

That way I will avoid much of the volitility.The Invesco fund may take longer to recover but hopefully it will be more consistent.

I presume when you are refering to the high income funds you are refering to this one rather than the Artemis High income as I believe that is a a part high yield bond fund which is a bit more risky

Yes I am referring to the Invesco Funds. The one thing that makes me hesitate on investing more in the Invesco High Income Fund is the probable inevitable drop in dividend income as the economy contracts, and since I'm using Income Drawdown it may not be appropriate for me. Something I'll have to mull over.

With regards to Vanguard I've just had a brief look at them, and although you can invest in a SIPP, the minimum purchase size is $100,000 so too much for my SIPP as it would completely unbalance it. Also Selftrade, who I hold my SIPP with only deal in a limited range of Vanguard funds.