Comments welcome on this portfolio:

wombat42_2

Graeme7777 wrote: »

Hi John,

Sorry, I wasn't very clear in my comment. What I was questioning whether there is significant overlap between the holdings of the different Global Equity portfolios? Why not pick the best Global Equity fund you can find rather than 4 or 5?

The American investor Warren Buffett (up there with Bill Gates in wealth terms) suggests that diversification can be overdone. He seems to suggest that it is better to hold a few investments that you really understand for the long term, rather than trying to switch with the gyrations of the market and run the risk of selling great assets for ones of a lower quality. Despite what people often suggest, fees can make a significant difference to your final return in the long term.

I think that point can be made of fund of funds - certainly safer but reduced to the lowest common denominator. Obviously you can make a fortune in no time if you focus on the right fund, but you need to do a great deal of research to understand what you are investing in, risks etc.

meester

john_kane wrote: »

Hi dunstonh,

I agree it does smack of fashion investing which does concern me. trying to chase the highest return will inevitably end in me selling at the lows when i get scared of losing even more than i have in a big downswing.

how about having:

45% balanced managed funds:
AXA Framlington Managed Balanced 10%
Neptune Balanced Fund 15%
Schroder Managed Balanced 10%
another balanced fund 10%

Global growth: 20%
Neptune Global Equity 10%
Aberdeen World Equity 10%

Emerging markets: 10%
First State Greater China Growth 5%
Allianz RCM BRIC Stars 5%

Commodities: 25%
BlackRock Merrill Lynch Gold & General 5%
CF Eclectica Agriculture 5%
JPMorgan Natural Resources 5%
MFM iFunds ETF Commodity Fund 10%

i am 23 and will be putting all income-expenditure into this. i currently have £100k in savings for a house deposit to buy a house in a couple of years when (hopefully) i qualify as an accountant and my salary goes up a fair bit.

john

Not sure the reason for your switch into Balanced Managed, but there are plenty of other sectors to cover: Japan, USA, Europe, Russia/Eastern Europe, UK Equity Income, UK Small Caps, etc. You would want to cover at least some of these.

purch

Comments welcome on this portfolio

BONKERS !!!!!!

[Deleted User]

Hi,

oh well, if going for one word replies, I would say,

ADVENTUROUS !!!

Trumpeter

purch wrote: »

BONKERS !!!!!!

So your suggestions would be........???

john_kane_2

Thanks for all your posts.

I feel I can be aggressive, given I'm only putting initially £20k of the £135k I have into this. £100k in cash for 2 years when i'll hopefully buy a house (with mortgage). another £15k in spreadbetting (gamble money), so that leaves me with £20k.

I was thinking of:
40% Investec Global Gold
30% CF Eclectica Agriculture
20% JPMorgan Natural Resources
10% Aberdeen World Equity

the only equity fund is bearish on UK and US, which I agree with (based on what i read from jim rogers and jim sinclair).

i'd hold these for a few years, till gold hits $1500-$1600, agriculture a hold for 2-5 years and natural resources for the long term (5 years+). with monthly income of around £2k-£3k id put it into these funds for this year, then start investing into global equities once all the financial writedowns have been made and the markets are much lower than current prices.

thoughts much appreciated

john

purch

So your suggestions would be........???

....don't have such a 'Bonkers' portfolio would be a good start.

It's all well and good to jump on the current 'Bandwagon' with Jim Rogers and his like, but you should remember that they have been banging the same drum for many of years ( and in the case of Jim Sinclair, it's the only drum he's ever been banging ) and only recently has even a very small part of what they have long been predicting started to happen.

If the OP truely does believe what these people are predicting, then I would say he is on the right lines, cos the whole portfolio is basically totally dependant on Resources, Commodity's and continued Emerging Market growth, along with the absolute devaluation of Western currencies and the collapse of their economies.

I would also comment that the OP appears to hold the niave belief that Active Fund Managers are infallible and likely to swith into cash whenever the going gets tough. Experience will teach him that usually the opposite is true.

Browntrout_2

john_kane wrote: »

i'd hold these for a few years, till gold hits $1500-$1600, agriculture a hold for 2-5 years and natural resources for the long term (5 years+). with monthly income of around £2k-£3k id put it into these funds for this year, then start investing into global equities once all the financial writedowns have been made and the markets are much lower than current prices.

thoughts much appreciated

john

You are gambling with your entire portfolio, grass is greener scenario chasing the dragon, whatever fashion, what if you are wrong?

There is every chance that the US and the UK (boring stuff) even Japan outperforms all those sexy new funds and emerging stocks.

nicko33

Browntrout wrote: »

You are gambling with your entire portfolio

even the 74% of his assets he's holding in cash?

purch

We've gone from:

emerging 15%:
First State Greater China Growth 7.5%
Allianz RCM BRIC Stars 7.5%
global 50%:
Neptune Global Equity 10%
JP Morgan Global Equity Income 15%
Aberdeen World Equity 10%
Artemis Global Growth 10%
MFM iFunds global growth 5%
commodities 35%
JM Finn Global Opportunities 5%
M&G Global Basics 5%
BlackRock Merrill Lynch Gold & General 5%
CF Eclectica Agriculture 5%
JPMorgan Natural Resources 5%
MFM iFunds ETF Commodity Fund 10%

to,

I was thinking of:
40% Investec Global Gold
30% CF Eclectica Agriculture
20% JPMorgan Natural Resources
10% Aberdeen World Equity

In 24 Hours (and 49 mins) :eek:

We awate with bated breath the next installment....(havn't we been down this road before with other 'little' friends ??)

BTW keeping 74% of the portfolio as cash hardly fits into the thinking of Jimmy Sinclair............every second that money isn't held as a shiny metal it is losing it's value !!!!!!!!!!!