Portfolio Fund Assistance

DennisTenus · 9 January 2018 at 6:07PM

Hi all,

I need some portfolio fund assistance please. I have 45K cash in IWeb left to buy funds with to form my portfolio with my existing holdings as follows:

10K Fundsmith
10K VLS80
5K Legg Mason IF Japan

I'm trying to not split it between that many funds to keep costs to the absolute minimum.

I've had suggestions before of types of things I need to look at to diversify and spread risk but I really need actual fund name suggestions as I'm no expert!

I'd like a split of active/passive ideally too and i'm in this for the medium to long term (all being well!)

Thanks in advance.

Prism · 9 January 2018 at 6:24PM

Those are all good funds IMO. With the 45K I would add to Fundsmith and VLS80. Legg Mason IF Japan is great too but you probably don't need much more of it. The only other things you are missing is a smaller companies fund and/or an EM fund if you fancy a bit more risk. I can tell you which ones I have so you can research them yourself

Baillie Gifford Global Discovery - overlaps a tiny bit with Legg Mason Japan but shouldnt be a problem
Fundsmith FEET - one of the sustainable Stewart funds might be an alternative but many of them are soft closed (they have an entrance fee of 4%)
Baillie Gifford Greater China - bit risky I reckon but huge gains for the moment
Jupiter India

Alexland · 9 January 2018 at 6:25PM

According to my data Fundsmith has a P/E of 27 - the money has already been made on that fund, surely you cannot expect it to continue?

VLS80 is great but given market conditions it might be time to slightly pull back on equity exposure? How about HSBC Global Strategy Balanced fund?

Or 50:50 VLS60 and 80?

I don't see what's so great about Japan there's good reason why the stocks are worth less and those reasons are not changing anytime soon.

Alex

jamei305 · 9 January 2018 at 6:26PM

What are you hoping to gain by not putting the £45k all into VLS80?

DennisTenus · 9 January 2018 at 6:36PM

Prism wrote: »

Those are all good funds IMO. With the 45K I would add to Fundsmith and VLS80. Legg Mason IF Japan is great too but you probably don't need much more of it. The only other things you are missing is a smaller companies fund and/or an EM fund if you fancy a bit more risk. I can tell you which ones I have so you can research them yourself

Baillie Gifford Global Discovery - overlaps a tiny bit with Legg Mason Japan but shouldnt be a problem
Fundsmith FEET - one of the sustainable Stewart funds might be an alternative but many of them are soft closed (they have an entrance fee of 4%)
Baillie Gifford Greater China - bit risky I reckon but huge gains for the moment
Jupiter India

Thanks, interesting. So you would add more than the 10K to Fundsmith and VLS80? Surely I need to spread it a bit...

I will check out those suggestions, thank you.

Alexland wrote: »

According to my data Fundsmith has a P/E of 27 - the money has already been made on that fund, surely you cannot expect it to continue?

VLS80 is great but given market conditions it might be time to slightly pull back on equity exposure? How about HSBC Global Strategy Balanced fund?
Alex

Thanks Alex, I was looking at that fund actually also whats P/E?

jamei305 wrote: »

What are you hoping to gain by not putting the £45k all into VLS80?

Diversification hopefully? And hopefully when that goes down another may go up, I know this is not necessarily the case!

I was also considering some in VLS 20% Equity to lower risk a bit and pull back on equity exposure as Alex suggests.... this a good idea?

Alexland · 9 January 2018 at 6:41PM

P/E is the Price to Earnings ratio - a fundamental measure of if a stock price is reasonable for the income it produces. When P/Es go above 20 it's time to start worrying. The P/E of a fund is the weighted average of the stocks it contains. I have nothing against Fundsmith but that party happened, money was made, and now it's time to find something new.

DennisTenus · 9 January 2018 at 6:44PM

Alexland wrote: »

P/E is the Price to Earnings ratio - a fundamental measure of if a stock price is reasonable for the income it produces. When P/Es go above 20 it's time to start worrying. The P/E of a fund is the weighted average if the stocks it contains. I have nothing against Fundsmith but that party happened, money was made, and now it's time to find something new.

Yeah I agree, don't want to put more money in that. Is there a way you can lookup the P/E of a fund?

Alexland · 9 January 2018 at 6:53PM

There are lots of good free websites out there to analyse fund data. My favourite is the YouInvest Fund Quickranker but I would usually do a lot of research on many sites before making any trades.

DennisTenus · 9 January 2018 at 6:58PM

Alexland wrote: »

There are lots of good free websites out there to analyse fund data. My favourite is the YouInvest Fund Quickranker but I would usually do a lot of research on many sites before making any trades.

Thanks yes I do too

I've got this fund with HL - https://online.hl.co.uk/my-accounts/fund_key_features/sedol/BBX4652

Trying to find it with IWeb and although there is similar ones, it's not exact. IWeb has the option to search by "Fund Code" I've looked at every page on HL and the KID but can't find it. Am I missing something here?

DennisTenus · 9 January 2018 at 7:02PM

Prism wrote: »

Those are all good funds IMO. With the 45K I would add to Fundsmith and VLS80. Legg Mason IF Japan is great too but you probably don't need much more of it. The only other things you are missing is a smaller companies fund and/or an EM fund if you fancy a bit more risk. I can tell you which ones I have so you can research them yourself

Baillie Gifford Global Discovery - overlaps a tiny bit with Legg Mason Japan but shouldnt be a problem
Fundsmith FEET - one of the sustainable Stewart funds might be an alternative but many of them are soft closed (they have an entrance fee of 4%)
Baillie Gifford Greater China - bit risky I reckon but huge gains for the moment
Jupiter India

Sorry silly question probably but do your suggestions cover smaller companies and EM fund? Not sure what EM fund is btw?

Alexland · 9 January 2018 at 7:05PM

DennisTenus wrote: »

Trying to find it with IWeb and although there is similar ones, it's not exact. IWeb has the option to search by "Fund Code" I've looked at every page on HL and the KID but can't find it. Am I missing something here?

Halifax SD / iWeb have less funds than HL.

Portfolio Fund Assistance

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