Investment advice for person panicking about Brexit

ruthcain1 · 7 August 2018 at 3:26PM

I am a pretty ignorant investor who had a bit of cash to invest 3/4 years ago and just follwed some very basic advice on spreading risk etc, I believe from the telegraph. To my surprise (and probably because of underlying market conditions or luck I suspect) the value has gone up 38%. This is my current holding. I have what's now a total of about £70,000 split roughly between no 1 son's ISA (he is 15 so it matures pretty soon and is his), 23k in no.2 son's ISA (he is 11) and about 11500 in mine.

I am on HL for ease but may change this, if there is another suitable platform for someone inexperienced like me, as I hear it's overpriced.

As I'm increasingly panicking about my prospects post Brexit as I have chronic health issues and am only 45 but already down to part time work only, I've realised I need to sort this out.

I have been watching other advice threads closely and note that most small investors are being advised to ditch their various funds and just consolidate into one global. Twotonealex is being advised on which one right now, I am seeing support for a Blackrock fund.

The lowest two performing funds in my lot have consistently been the Aberdeen Latin American Equity and the Newton Asian income so I am thinking of ditching those in particular and swapping for something else but not sure where to choose.

My thanks in advance for taking the time to help me out. Any advisors who find themselves in the depths of SW London are welcome to pm me and request a free drink or 3.

ruthcain1 · 7 August 2018 at 3:27PM

oops sorry my portfolio details did not post. They are
Lindsell Train Global Equity Class A 41.0% Global
2 Newton Asian Income Class W 29.1% Asia Pacific Excluding Japan
3 Aberdeen Fund Managers Latin American Equity Class I 11.3% Specialist
4 Legg Mason IF Japan Equity Class X (Hedged) 9.7% Japan
5 AXA Framlington Health Class Z 7.6% Specialist
6 Fidelity UK Smaller Companies Class A 1.3% UK Smaller Companies

eskbanker · 7 August 2018 at 3:52PM

ruthcain1 wrote: »

I have been watching other advice threads closely and note that most small investors are being advised to ditch their various funds and just consolidate into one global.

As you'll probably have seen by now, the main rationale for that approach is that global multi-asset funds have coverage of all the key sectors and take care of all rebalancing to maintain the relative proportions. I'm not experienced enough to judge your portfolio but suspect that you'd struggle to articulate clearly exactly why you hold those funds in those proportions and ignore other markets and asset classes and so on, so why not let experts make those calls? As the investor you still need to make the judgement calls about the level of risk you're prepared to tolerate though.

ruthcain1 wrote: »

I am on HL for ease but may change this, if there is another suitable platform for someone inexperienced like me, as I hear it's overpriced.

It's often said on here that it's one of the more expensive platforms, but conversely it's also said that you get what you pay for, so many are quite happy to pay a premium price for a premium service. If you're happy enough to use a cheaper platform, there are plenty to choose from, see

http://monevator.com/find-the-best-online-broker/
http://www.comparefundplatforms.com/
http://forums.moneysavingexpert.com/showthread.php?t=5583030

Alexland · 7 August 2018 at 4:05PM

Firstly as the hitchhiker's guide says Don't Panic as Brexit has probably been very beneficial to your investments as the devalued pound has boosted the value of your overseas holdings.

Secondly investment is intended for people who are at least 5-7 preferably 10 years away from needing to withdraw the money so they have time to ride the ups and downs.

In the case of your 15 year old if they intend to use the money at 18 for university etc then they may no longer have an investment timeline. For the other son I like the Vanguard Target Retirement funds for Junior ISAs as they automatically reduce volatility as the withdrawal date approaches.

For your own investments I am unclear how they will be used in your life so will not comment.

Alex

dunstonh · 7 August 2018 at 4:10PM

I am a pretty ignorant investor

Just noting that in readiness for the next quoted bit....

oops sorry my portfolio details did not post. They are
Lindsell Train Global Equity Class A 41.0% Global
2 Newton Asian Income Class W 29.1% Asia Pacific Excluding Japan
3 Aberdeen Fund Managers Latin American Equity Class I 11.3% Specialist
4 Legg Mason IF Japan Equity Class X (Hedged) 9.7% Japan
5 AXA Framlington Health Class Z 7.6% Specialist
6 Fidelity UK Smaller Companies Class A 1.3% UK Smaller Companies

A very very high risk spread that has the whiff of fashion investing. Totally unsuitable for an inexperienced investor and in for one hell of a roller coaster ride during volatile markets.

follwed some very basic advice on spreading risk etc, I believe from the telegraph.

a) not advice
b) newspapers promotion of funds ranges from unbelievable one minute to supporting its advertisers the next.

As I'm increasingly panicking about my prospects post Brexit

Why? With your holdings, a hard Brexit would be ideal for you. A fall in Sterling would increase your values.

I have been watching other advice threads closely and note that most small investors are being advised to ditch their various funds and just consolidate into one global. Twotonealex is being advised on which one right now, I am seeing support for a Blackrock fund.

A multi-asset fund would be better for an inexperienced investor who isnt using an adviser. I suspect it is unlikely you wanted such a gung ho risk level with your current spread. So, a lower risk multi-asset fund would be better. Blackrock offer these and there are hundreds of others.

Also, cash may be more suited for some of it in respect of the very short term objective (the 15 year old)

The lowest two performing funds in my lot have consistently been the Aberdeen Latin American Equity and the Newton Asian income so I am thinking of ditching those in particular and swapping for something else but not sure where to choose.

Your reasons for ditching them are completely wrong. That isn't how you invest. You have only been 3/4 years and a cycle is over 10 years. Every area in a cycle will have negative periods. Making a decision on the basis of short term performance in an area which has had weaker returns, in general, is not what you should be doing.

However, I would ditch them in your case because of lack of knowledge.

ruthcain1 · 7 August 2018 at 4:23PM

Also I'm getting the vague feeling you are pretty annoyed as my silly 'fashion investing' (as I said above I just googled some good funds) has actually gained me 38% over the years purely by chance.... and now I'm trying to get sensible.

Am I right?

I don't think the markets exist as a vehicle to punish the foolhardy, much as you might like them to.

ruthcain1 · 7 August 2018 at 4:26PM

btw I think I did go for a high risk strategy (from the telegraph which was the only place I looked!!! Hang me from the highest tree for being a lawyer in a non financial discipline who didn't go to a stockbroker!!) as there was a while to wait before I needed anything to pay off, I wasn't panicking about the state of my job etc and I was well off and not ill then. Now my eldest is 15 clearly his fund at very least needs to be in something much more stable.

See? Nothing to get so very, very angry about. Cheers, enjoy your afternoon anyway. Sounds like you could do with a break

ruthcain1 · 7 August 2018 at 4:32PM

You also didn't read my post properly re Brexit. Iwrote that I am 'increasingly panicking about my prospects post Brexit as I have chronic health issues and am only 45 but already down to part time work only, I've realised I need to sort this out.'

This is to do with my employment and personal prospects, NOT the value of, say, UK or £ investments.

Please, if you are going to be so snooty to newcomers, be a bit more careful yourself to get everything absolutely right.

ruthcain1 · 7 August 2018 at 4:39PM

Thankyou very much Alexland. My panic re Brexit is not about investment value as I had an inkling foreign investments would go up if the £ falls further as looks likely.

It is more that I am having to re-evaluate my entire lifestyle and future income sources, as I don't think post Brexit Britain is going to be very kind to employees in a lot of fields (I am in law but have a chronic illness which is getting worse and my prospects of returning to full time work are thin, hence with the impact of Brexit on my sector and the UK generally, I am even more worried now). A few years back I was pretty gung ho as you can tell from the way I've invested.

I can't believe how rude and arrogant some posters are on here (not you!) when you come on announcing up front that you are ignorant of the market and have probably made mistakes (although mistakes that have worked out rather profitably to date?!) That is the whole reason I'm looking for advice now, isn't it?! Doesn't take a financial genius to work that out....

I am going to switch the lads' portfolios into something lower risk all round but cash rates look pretty !!!!! so I was going to wait a year before transferring any of eldest's into cash. I think I will leave mine as is but switch away from a couple of the specialist funds into a global equity this year and then de-risk a bit later as I may need cash to buy some property in Ireland.

Alexland · 7 August 2018 at 4:39PM

Sorry I don't know which of us has offended you most but I promise we were all trying to be helpful. Alex.

ruthcain1 · 7 August 2018 at 4:46PM

Not you at all Alexland. The person above sneering at me for 'fashion investing' or whatever that is.

I suppose it may be his personal style, or maybe as I feel very ill and worried about my prospects today, I'm oversensitive.

Investment advice for person panicking about Brexit

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