Statement of intent

StuartGMC

Well, my pay will be dropped into the a/c tomorrow but I couldn't resist doing the spreadsheet in advance

So where are we?
Well, we are of course well into the net positive position overall now by some £13.7k but the available cash (as opposed to that in the ISA Funds) is only about £2k once present credit card spend etc is accounted for (and less if I remember the mortgage sealing fee!). We obviously have costs ahead as normal in the month with OH being paid on 15 October and me again around 26...

...so certainly won't clear early in October, but this would never have been the case, although end of the month may just be feasible but it still leaves us rather exposed, difficult to check exactly where at this time so I think I need some patience now and to focus on other aspects in the meantime.

setmefree2

Hi Stuart,

I currently have 20% of my pension in a FTSE tracker. I'm thinking about moving this back into cash - haven't decided yet:think: - just thought I'd let you know. The reason being that too many analysts are saying the market is going to fall soon and I think I might bank my profits and get back in at the end of October.

SMF2

StuartGMC

SMF2
If you have profits and are concerned about a fall back then I can understand you deciding to cash now and then buy again on the assumption you can buy back more cheaply. It will also let you review whether to be following the FTSE at all of course, and you may want to look at spreading across a number of funds with global coverage?

I use Trustnet's portfolio tool which brings together all the holdings so you can see how they stack up in total regionally, industrial sector and asset allocation. Our funds are presently 39.8% UK with 35.8% in UK equities; so Stuart is "not backing Britain" I guess on this analysis Over 6months the FTSE All Share has risen 35.1% whereas my portfolio would have risen 47.3% which seems about right although pound-cost averaging by monthly purchases does influence the actual position on our portfolio.

Most media commentary expects recovery to be better outside UK, and also recommend that in this "new era" growth and future dividends may be more likely from the smaller companies than the old blue chip stalwarts who may be slow to adapt.... Difficult call, all I can say is our Investec UK Smaller Co fund has really improved since January, so since June 2006 it is now back to 11% profit despite the drop in 2008.

Turning to more cash based matters, this month has been quite good with the usual mortgage and OP, plus the extra OP amounting to £650, and then the normal £300 to investments plus we've saved £1600 in the month too, which is helping to recover the amount taken out for our holiday this year. However, I may need to pull back some savings into current a/c around 10 Oct when credit card payment is scheduled to keep enough in it to OH pay day.

Inflation is at 1.6% http://www.statistics.gov.uk/cci/nugget.asp?ID=19 although RPI, due to the lower interest rates on mortgages shows a negative value, RPIX is 1.4% and has now started to rise. The question is whether the BoE will remain charged with managing inflation at 2-2.4% (I think that's the range) or if government will let inflation rise above this so it helps to erode the real value of the debts? I've noted several times I think inflation will start to rise 2010 on, and assume that interest rates will do likewise, but this may not be the case. In such a situation our savings etc would all be losing value... any thoughts anyone?

setmefree2

Hi Stuart,

Moved my FTSE money ( and banked a 5 figure sum :T) I'll probably move back into these funds (BGI Cautious Index Fund & F&C UK Index Tracking fund) at the end of october

I remain in the following funds:-

25% First State - Global Emerging Market Leaders (Large & Mid caps in emerging) Manager Jonathan Asante
15% Jupiter - Financial Oppotunities (Shares in Financial Services) Manager Philip Gibb
10% JPMorgan - Natural Resources

and

50% Cash

Kind Regards

SMF2

SmileyG_2

setmefree2 wrote: »

Hi Stuart,

Moved my FTSE money ( and banked a 5 figure sum :T) I'll probably move back into these funds (BGI Cautious Index Fund & F&C UK Index Tracking fund) at the end of october

I remain in the following funds:-

25% First State - Global Emerging Market Leaders (Large & Mid caps in emerging) Manager Jonathan Asante
15% Jupiter - Financial Oppotunities (Shares in Financial Services) Manager Philip Gibb
10% JPMorgan - Natural Resources

and

50% Cash

Kind Regards

SMF2

SMF2,

50% cash is good place to be. If the market falls, you'll be handily placed to re-invest. Good luck!!

SmileyG

PS I have 46% cash and an amount of that is instant access to reinvest if the market falls. Though timing it might be more luck than judgement!

StuartGMC

setmefree2 wrote: »

Moved my FTSE money ( and banked a 5 figure sum :T) I'll probably move back into these funds (BGI Cautious Index Fund & F&C UK Index Tracking fund) at the end of october

I remain in the following funds:-

25% First State - Global Emerging Market Leaders (Large & Mid caps in emerging) Manager Jonathan Asante
15% Jupiter - Financial Oppotunities (Shares in Financial Services) Manager Philip Gibb
10% JPMorgan - Natural Resources

and

50% Cash

Kind Regards

SMF2

SmileyG wrote: »

SMF2,

50% cash is good place to be. If the market falls, you'll be handily placed to re-invest. Good luck!!

SmileyG

PS I have 46% cash and an amount of that is instant access to reinvest if the market falls. Though timing it might be more luck than judgement!

Great for both of you, if you're watching closely then I'm sure it will work well. Edit: But I guess I'm counting on the potential drop not being as great as the growth I've seen so far which has just got me back to breakeven i.e. even if they drop, they'll recover above the present position quickly and if I sell some and they don't drop enough, I'll not make a profit on buying back in....

The amount of cash I'm holding is actually 60% but that's because it's the offset savings. Once MF I would hope we both hit our new £10200 per year ISA allowances from next April as we should be looking at 50% of net income heading to short and long term saving each month. This will see an increase in the investments per month in the Funds ISAs with a broader range of funds, as mine are presently more in the "high risk" categories. That said, I firmly believe real growth will be in the emerging economies over the next 15yrs and will plan the portfolio accordingly, but I need to develop a plan for moving some profits into lower risk vehicles along the way, say from 7-8yrs from now when we'll be 51-52yrs old gulp :eek:

Actually, I think there won't be a problem with the profits, if I don't use them buying cars, DD will now doubt use them for support at Uni (just potential 6.5yrs away) or for global tour etc.. :rolleyes:

Ohh, and just to make me feel better I just dropped in a further £2950.45 into the mortgage to leave it standing at just £11,000 :j:j:j

No difference in our net position of course, and savings has just dropped but it feels good even if we won't clear mortgage just yet :beer:

RosieTiger

Stuart, fantastic keep it going !

StuartGMC

RT
Thanks

SMF2 and SmileyG
Funds UP AGAIN today - have now broken into total profit! :j:j:j
It may only be £38.90 but what a contrast to 24 Feb 2009 when we were facing a loss of £4742

Funds selected from January 2009 and receiving money monthly (not a lump sum to kick off) are all up in total 9.22% (bottom four below)
Our total situation is

Neptune Russia and Greater Russia (NERGRA) -13.11%
Investec Fund Mgrs UK Smaller Cos Acc (GMTBUA) +10.57%
Threadneedle Latin America Ret 1 Acc (ADLAG) +5.12%

BlackRock UK Absolute Alpha P Class (MYAAP) + 2.53%
M&G International Sovereign Bond (MGISA) +2.21%
First State Asia Pacific Leaders (CFAPLA) +22.01%
Neptune US Opportunities A (NEUSA) +11.87%

So it just needs commodities and energy to pick up in 2010 and Russia should move into profit despite hitting -60%+ in October 2008.

:D:D:D:D:D:D

Edit: Just had to say how much I enjoyed Electric Dreams on BBC4 tonight; the 1970s and all it entailed brought memories back especially the TV game unit.... it will be the 1980s next week.

gallygirl

StuartGMC wrote: »

RT
Thanks

SMF2 and SmileyG
Funds UP AGAIN today - have now broken into total profit! :j:j:j
First State Asia Pacific Leaders (CFAPLA) +22.01%

Well done & yay to FSAPL (one of mine :T:T:T) - maybe if I list them all on here their updates will magically appear to save me looking . Sorting out my pension fund, and also OH's, is on my Oct to do list. !!!!, that starts tomorrow :eek:

setmefree2

for the increasing funds :T:T


How's your daughter getting on at High School? and how's your brother? Has he found a new job?

Regards

SMF2