First Thoughts of Funds Portfolio please

LULULU1 · 13 May 2018 at 9:00AM

I agree but to be honest self managing seem a bit fraught with danger. I know there is the ongoing debate of passive v actual and everybody has a different answer.

To pay 1.8% for the "Leave it to the expert" is expensive I suppose especially over the years.

I have even considered just getting an IFA but even the use of these is divided in opinion.

firestone · 13 May 2018 at 9:10AM

If you want to go passive i would agree with the others and look at all world funds as they take out the risk of you picking the markets(but check the regions as some are just global and may not invest in the EM that you wish for) Small cap maybe worth looking at active managers for more hands on style but there is the Vanguard global small cap index fund.You could also for a bit more risk pick a fund like Scottish Mortgage which is cheap and not constrained by region or size.
fixed income and property etc may depend on your risk level(but are risky in their own ways)and your age

A_T · 13 May 2018 at 10:23AM

LULULU1 wrote: »

I agree but to be honest self managing seem a bit fraught with danger. I know there is the ongoing debate of passive v actual and everybody has a different answer.

To pay 1.8% for the "Leave it to the expert" is expensive I suppose especially over the years.

I have even considered just getting an IFA but even the use of these is divided in opinion.

Stick most of it it a global tracker (Vanguard FTSE Global All Cap Index, HSBC FTSE All-World Index, Fidelity Index World, VWRL, SWDA) and the only danger is the market falling in which case you're in the same boat as all other equity investors in the world.

There is no need for an IFA unless you really don't want to do any research of your own. Your efforts so far seems to show that this does not apply yo you.

LULULU1 · 13 May 2018 at 10:27AM

Thanks. That what Im edging towards. Out of interest can some one point me to a small cap Japan ETF which is acc and not a dividend one.

I assume the big players mentioned above give pretty much the same returns and similar charges.

Prism · 13 May 2018 at 11:59AM

LULULU1 wrote: »

I think its beginning to take a better shape now with much more balance. Here we go........

MSCI ACWI Index 70%
Emerging Funds small caps ETF 10%
Asia Excluding Japan ETF 10%
UK Small companies Tracker 10%

Not that its wrong (there is no right or wrong) but you can end up with odd effects when you put a bunch of funds together like this. I put these allocations into morningstar.

You would have about 5% invested in Australia
You would have a high percentage in Hong Kong and South Korea (maybe about 8%)
You would be more cyclical and less defensive than the MCSI ACWI
Your second biggest holding would be Samsung
AIA Group is one of your biggest banks

You would have to think and decide if this is truely what you are after. Would you really value Samsung more than Microsoft, Facebook or Alphabet? Is Australia as good as an investment as Japan (also arounf 5%)?

LULULU1 · 13 May 2018 at 12:11PM

Can you tell me where about on the Morringstar site you did that please.

Its very very helpful.

Thanks

Prism · 13 May 2018 at 12:18PM

LULULU1 wrote: »

Can you tell me where about on the Morringstar site you did that please.

Its very very helpful.

Thanks

Its called Morningstar Xray. I use it through my Youinvest account but you can get it direct from Morningstar. I do not know if it costs money to subscribe to

bostonerimus · 13 May 2018 at 12:41PM

LULULU1 wrote: »

Thanks you for your help.

Its more than 100k. Its in a SIPP at the moment. Many people have said they don't feel a professional is necessary but Im happy to be helped that way if its the right thing t0 do.

The reason I came on way to see whats others views were to asset allocation and then continue to study before making a final decision.

Hargreaves Landsdown do two things called "leave it to the experts" and "Master Portfolio". They also look helpful.

If you know what you're doing then a professional is not needed. However, I think you need to learn a bit more before you implement your portfolio. Your allocations have jumped all over the place and as a novice I question the extent of your initial Asia and Small Cap allocations. I am far more comfortable with your final portfolio, but it still has no fixed income; bonds etc are an asset class you are totally ignoring. Read something like Tim Hale's book and certainly look at the example portfolios on H&L's website to develop your own approach. Have you thought about how you'll manage your portfolio after you've chosen it? Are you going to buy and hold, rebalance or actively trade?

LULULU1 · 13 May 2018 at 6:03PM

Hi, I dont intend to do much with it other than rebalance. I haven't considered fixed income or bonds yet but I guess to balance every portfolio they are needed.

When you say fix assets I assume government backed bonds ad gilts are the safest and then you can stray to however much risk you want to take.

Again, thanks for your help.

Alice_Holt · 13 May 2018 at 7:01PM

"Its more than 100k. Its in a SIPP at the moment."

This raises some questions for me.

Are you intending to restructure your SIPP?
If so, I would be taking into account your overall pension situation (any DB schemes? SP forecast) / time scales / income required in retirement? etc when looking at an appropriate risk structure for your SIPP.
What will you be using the SIPP for?

Are you intending to withdraw money from your SIPP. Have you looked at the tax implications?

First Thoughts of Funds Portfolio please

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