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I've chosen to take a 'three of each' approach in my global income IT with the view that it mitigates any potential disasters at any one of the three.
It also generates some category asymmetry for rebalancing and that may in turn help to capture some value longer term. I don't worry about overlap because I honestly don't think it matters much, if at all.
I've taken a one of each in my SIPP, ISA and General investment account, I may add another one to each too, so I have my eggs firmly in plenty of baskets0 -
I would not class Fundsmith and Artemis Global Income as being in the same sector, although they are both picking shares from the same markets, their selection criteria are quite different.
So although they are both Global funds (with Artemis being Income) I can see they do select there shares differently. Artemis is more diverse across geographical sectors with only about 30% in the US whereas Fundsmith is around 60% US.0 -
Personally, I like the Vanguard Lifestrategy funds for a low cost global mix - I have the LS 60 which includes 40% bonds for lower volatility.
In the past I have held the Murray Intl. trust but it underperformed the benchmark for 3 years and I decided to off-load and switch to the VLS.
The global funds have had a good run these past couple of years and particularly SMT so beware of buying 'at the top' so to speak.
I do like this fund as it holds many of the companies at the cutting edge of th technological revolution which should continue to do very well in the future. I note this has been a recent addition for diy investor - here's a link which may be of interest
http://diyinvestoruk.blogspot.co.uk/2017/01/scottish-mortgage-trust-new-portfolio.html0 -
Due to the mix of industries in which the largest US companies operate, and the preference of US investors for share buybacks rather than dividend income payments from a tax perspective, the major US indices always yield quite a bit lower than the UK ones.So although they are both Global funds (with Artemis being Income) I can see they do select there shares differently. Artemis is more diverse across geographical sectors with only about 30% in the US whereas Fundsmith is around 60% US.
So, someone who is building an equity income fund and specifically shopping for companies that pay out dividend income and looking to keep that income stream high or at least stable in GBP for their UK investors, is rather less likely to do that shopping in the US than elsewhere (e.g. UK).
Terry Smith is not specifically looking for a high level of dividend income as he is not marketing his offering as an equity income fund. He has 60% in US because that's where he found the companies he liked when looking for them. The Artemis income fund is looking for dividends specifically, so has different criteria on the shopping list, so goes shopping in different places, and finds relatively fewer things to buy in the US.0 -
bowlhead99 wrote: »Due to the mix of industries in which the largest US companies operate, and the preference of US investors for share buybacks rather than dividend income payments from a tax perspective, the major US indices always yield quite a bit lower than the UK ones.
So, someone who is building an equity income fund and specifically shopping for companies that pay out dividend income and looking to keep that income stream high or at least stable in GBP for their UK investors, is rather less likely to do that shopping in the US than elsewhere (e.g. UK).
Terry Smith is not specifically looking for a high level of dividend income as he is not marketing his offering as an equity income fund. He has 60% in US because that's where he found the companies he liked when looking for them. The Artemis income fund is looking for dividends specifically, so has different criteria on the shopping list, so goes shopping in different places, and finds relatively fewer things to buy in the US.
Thank you, so it seems acceptable to hold both in a portfolio but maybe not if I wanted to include a global IT in the portfolio?0 -
I've chosen to take a 'three of each' approach in my global income IT with the view that it mitigates any potential disasters at any one of the three.
It also generates some category asymmetry for rebalancing and that may in turn help to capture some value longer term. I don't worry about overlap because I honestly don't think it matters much, if at all.
So really, I could choose a 'three of each' approach for my global funds and keep Fundsmith and Artemis Global Income then sell Newton Global Income and replace with a Global IT such as Witan or Alliance Trust?0 -
In all honesty it's massive overkill with well established global focused funds.
I've chosen to do what you've quoted for specific reasons.
It has consequently applied to my global IT holdings by default rather than by design, as that approach was aimed specifically at more volatile regional categories.
What's ironic is that it's the global category this approach has had most success in with limiting the damage Mr Ryan did at what was BIST.
It's not a strict rule however and certainly has no compelling investment advantages.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
In all honesty it's massive overkill with well established global focused funds.]
I tend to agree that three global funds in a portfolio is overkill for a well diversified asset allocation in the various sectors.
I personally can't see anything wrong with having 2 global funds especially if they have shares in different companies and generally invest in diverse geographical sectors!0 -
I personally can't see anything wrong with having 2 global funds especially if they have shares in different companies and generally invest in diverse geographical sectors!
You might struggle on the basis that they are just that, diverse globally oriented. There's nothing wrong with holding two if they have similar holdings either, imho. As long as they're net cost neutral.
Whether it proves advantageous is debatable, highly unlikely if both are similar, other than as a bit of insurance against each other.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0
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