»

Portfolio advice - Page 2

New Post Advanced Search

Coronavirus: The latest from MSE


The MSE team is working extremely hard to keep the info we have about your travel rights, cancellation rights, sick pay (and more) up to date.
The official MSE guides: NEW MSE Coronavirus Guides

NEWSFLASH 31/3
RESCUE FLIGHTS FOR STRANDED BRITS * SCHOOL MEALS VOUCHERS * BRIGHTHOUSE COLLAPSES

Portfolio advice

edited 30 November -1 at 1:00AM in Savings & Investments
28 replies 2.2K views
2

Replies

  • Ok, cheers.

    I did have 45% in North America and around 25% in the UK so by your logic reducing the US was definitely wise and maybe I should reduce a little more.
  • I've just sold a fair bit of the emerging markets after reading a few things and based on the sharp jump over the past few months.

    Anyone got any thoughts on good options for long termer, high risk funds?
  • fun4everyonefun4everyone Forumite
    2.3K posts
    1,000 Posts Fourth Anniversary Name Dropper Photogenic
    ✭✭✭✭
    I don't like the all share tracker as exposure to the UK, if you have long time frame and don't mind volatility I prefer mid/small/micro cap active funds for the UK. If you really want to use a tracker I would pick a 250 one instead of all share.
  • MaxiRobriguezMaxiRobriguez Forumite
    842 posts
    500 Posts Name Dropper First Anniversary
    ✭✭✭
    I've just sold a fair bit of the emerging markets after reading a few things and based on the sharp jump over the past few months.

    Anyone got any thoughts on good options for long termer, high risk funds?

    Yeah.. Emerging markets for starters. It may have had a jump in the last couple of months but such indexes are dominated by China which has been flat for about five years.

    You could also consider the UK market again. FTSE100 companies pay sizable dividends at the moment and a poor/no Brexit deal in January could lead to weakening of GBP and further extending dividend yield and growth prospects. UK market likely to be more volatile than others in my opinion this year, volatility brings opportunity and risk in equal measure.

    Other options are small caps.

    Otherwise, just stick to VLS100 and be done with it. With all due respect, your portfolio is not big enough to start worrying about allocation splits. The gains you might make are small and the risks you introduce outweigh the necessity of gains. Focus more on just building the pot through contributions at the moment and repeating on a nightly basis "I won't change my portfolio based on short term market moves".
  • AlexlandAlexland Forumite
    6.2K posts
    1,000 Posts Second Anniversary Photogenic Name Dropper
    ✭✭✭✭
    All seems very complicated. If you want to invest circa £20k in 100% equities (having accepted the likely volatility profile in adverse conditions) then a one fund global World, All-World or All Cap tracker should do fine. Or VLS100 if you want the UK bias.
  • igladiglad Forumite
    213 posts
    Tenth Anniversary
    ✭✭
    Hi

    I started investing a while ago with a fairly helter skelter approach but am now thinking it might be wise to try and balance things out a little!

    I'm in my early 40s and looking to invest for probabloy the next 20 years so happy to take on lots of risk. As things stand I have:

    Fidelity American Special Situations - £1888
    Fid Emerging markets - £3623
    Fid Index UK - £4801
    HSBC ETFS PLC S&P 500 - 2808
    Vanguard FTSE Developed World ex-UK equity Index - 2135
    Vanguard life strategy 100% equity - 2360
    Worldwide healthcare trust - 2314

    I know this is probably a lot more in emerging than most people would have and maybe more in UK and probably overall quite high risk.

    However, I have about another £2000 to invest. Is there an obvious hole/gap that I should stick that in? Or beyond the very broad, basic imbalances I have said, is there anything really, really bad or obviously wrong with this lot?

    Any advice appreciated.

    Why haven't you ditched the Fidelity American Special Situ as the performance is shocking 9% over 3 years!!!

    The Fidelity Index US P tracker wipes the floor with it 27.6% over 1 years 42% over 3 years. Get Out Now!!

    Below is a link to the North American Index funds

    https://www.moneyobserver.com/funds?security_types%5Bfund%5D=fund&security_types%5Binvestment_trust%5D=investment_trust&sector=7&name=index
  • Hmm, good point but I guess past performance, the future etc? Guess I bought it years ago and haven't monitored so closely and just thought I can't expect all of my options to go up loads.
    iglad wrote: »
    Why haven't you ditched the Fidelity American Special Situ as the performance is shocking 9% over 3 years!!!

    In terms of the Vanguard 100, it is very US weighted. I guess that reflects the shape of the global economy but with my other US options maybe I';ll look for a more general emerging option. Or maybe just hold a bit of cash for now.

    I appreciate in the scheme of things this isn't a lot of cash but obviously it is for me!

    The Fidelity Index US P tracker wipes the floor with it 27.6% over 1 years 42% over 3 years. Get Out Now!!

    Below is a link to the North American Index funds

    https://www.moneyobserver.com/funds?security_types%5Bfund%5D=fund&security_types%5Binvestment_trust%5D=investment_trust&sector=7&name=index
  • slingaslinga Forumite
    1.5K posts
    Part of the Furniture 1,000 Posts
    ✭✭✭
    Anyone any thoughts on UTs from Fundsmith or Lindsell Train?
    It's your money. Except if it's the governments.
  • IxelIxel Forumite
    32 posts
    I used to hold both of these a while ago, but when I was simplifying my portfolio and transitioning from using funds to instead using ETFs (to significantly reduce platform charges on HL) I ditched them. There's been one or two news articles towards the end of 2019 I believe, but the future of an investment is always somewhat unknown. Past performance isn't a perfect indicator on future performance. They performed quite well when I did have them.


    For simple curiosity I'm interested to know what other opinions are on both Fundsmith and Lindsell at the moment.
  • bowlhead99bowlhead99 Forumite
    10.5K posts
    Part of the Furniture 10,000 Posts Name Dropper Post of the Month
    ✭✭✭✭✭
    iglad wrote: »
    Why haven't you ditched the Fidelity American Special Situ as the performance is shocking 9% over 3 years!!!

    The Fidelity Index US P tracker wipes the floor with it 27.6% over 1 years 42% over 3 years. Get Out Now!!
    Hmm, good point but I guess past performance, the future etc? Guess I bought it years ago and haven't monitored so closely and just thought I can't expect all of my options to go up loads.

    It is often shortsighted to follow recent history to decide what holdings you want. That particular fund has certainly underperformed against the broader market for the last two to three years, so some smart alec will shout at you to "Get Out Now!". However, three years ago the same smart alec would have looked at the fund against the broader universe of US funds and note that it was in line with the index over the previous one or two years, but decently ahead of the sector over three years, five years, seven, nine, etc etc fifteen.... They would have been saying "Get IN Now", why track an index when you can use this fund to get an appreciably better performance...

    Always wanting to be top of the pops and therefore buying the things that are popular and show they can go up the most in recent times, and then selling them when they have taken a turn at underperforming is not a credible strategy.

    If you're going to build a portfolio out of specialist funds that employ particular tactics or strategies within their stock picking, you generally need to have some rhyme or reason why you are using them.

    An active fund that invests in 'special situations' opportunities might be expected to have certain phases of an economic cycle in which it has richer pickings, while one might think that if the broader markets are going gangbusters, the pickings for a fund searching for value in companies fallen on hard times or temporarily undervalued by the market may be slimmer, relatively.

    So, may not be the best thing to hold at the tail end of a long growth cycle when everything is going up, but their deep value plays could be better when markets are moving into or coming out of recession. There are pros and cons of different approaches but DIY investors tend to need to have more fluid allocation mixes than those who just want to ride the index over the long term.

    The manager of Special Sits is deliberately employing a contrarian strategy in selected opportunity sets, so you would not expect it to tightly track the broad markets, but logically you would perhaps think it would be less spectacular when markets are riding high; which indeed the markets have been (S&P500 up 33% in dollars in calendar 2019), and indeed the fund hasn't captured that high return. So buying it and sitting on it through thick and thin is not necessarily the best way to use it - markets spend more time at or near their long term highs, than they spend in the doldrums.
    slinga wrote: »
    Anyone any thoughts on UTs from Fundsmith or Lindsell Train?
    They aim to deliver the return of a concentrated, conviction-driven portfolio, with their holdings following certain criteria favoured by the manager. Sometimes that particular strategy will work well and at other times, rather less so - because it depends whether the types of company meeting the selection criteria from time to time are on average being favoured more by stock market investors, or less. High conviction portfolios can deliver large returns in short spaces of time, and can similarly disappoint on the downside.

    I don't have UTs from either manager though family members have the LT global and UK funds, which have done well as can be seen from the charts, but they are not massive parts of the portfolios.
Sign In or Register to comment.

Quick links

Essential Money | Who & Where are you? | Work & Benefits | Household and travel | Shopping & Freebies | About MSE | The MoneySavers Arms | Covid-19 & Coronavirus Support