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Post by Fletchsmile on Jul 24, 2017 15:34:28 GMT 7
FWIW here's what's in my SIPP:
Stewart Investors Global Emerging Markets Leaders Class B 18.50% Emerging Markets Woodford CF Woodford Equity Income Class Z 16.00% UK Equity Income Franklin Templeton (Lux) Templeton Frontier Markets Class A 14.50% Frontier Markets Lindsell Train Global Equity Class D 13.60% Global Threadneedle European Select Class Z 13.60% Europe Excluding UK Standard Life Investments UK Real Estate Fund Institutional 8.70% Property Stewart Investors Asia Pacific Leaders Class B 6.30% Asia Pacific Excluding Japan Schroder Small Cap Discovery Class Z 5.40% Global First State Global Listed Infrastructure Class B 3.40% Global
I should add the objective is growth as I don't take anything out of it. i.e in contrast to someone in pension drawdown or who's objective is portfolio survival rather than growth. It's also not one of my larger portfolios as for years I wasn't a big fan of the way UK pensions were heading and didn't like shifting goalposts and inflexibility so invested elsewhere
= 90% + equities. = Europe, Asia and EMs/frontier markets are where I see most growth from here. = Neil Woodford has a place as always as a UK guy = The property fund to an extent doesn't fit my pension objectives per say and to an extent doesn't belong here. However, it's there when taking into consideration all my other portfolios together. Part of the rationale was sometimes property funds get closed to redemptions in tough times. So I didn't want it in other more liquid portfolios that I might want to access. Hence I stuck it in this pension portfolio which I've no plans to access anyway for now, and it doesn't really bother me if it gets closed to redemptions for a while, like many UK property funds did a while back = no fixed income. Similar to what AYG mentioned I see little point in a longer term growth portfolio. The story will be different when I get closer to wanting to draw from it though and portfolio survival/ ability to form income becomes the objective instead of growth
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AyG
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Post by AyG on Jul 24, 2017 16:06:52 GMT 7
FWIW here's what's in my SIPP: Stewart Investors Global Emerging Markets Leaders Class B 18.50% Emerging Markets Woodford CF Woodford Equity Income Class Z 16.00% UK Equity Income Franklin Templeton (Lux) Templeton Frontier Markets Class A 14.50% Frontier Markets Lindsell Train Global Equity Class D 13.60% Global Threadneedle European Select Class Z 13.60% Europe Excluding UK Standard Life Investments UK Real Estate Fund Institutional 8.70% Property Stewart Investors Asia Pacific Leaders Class B 6.30% Asia Pacific Excluding Japan Schroder Small Cap Discovery Class Z 5.40% Global First State Global Listed Infrastructure Class B 3.40% Global I should add the objective is growth as I don't take anything out of it. i.e in contrast to someone in pension drawdown or who's objective is portfolio survival rather than growth. It's also not one of my larger portfolios as for years I wasn't a big fan of the way UK pensions were heading and didn't like shifting goalposts and inflexibility so invested elsewhere = 90% + equities. = Europe, Asia and EMs/frontier markets are where I see most growth from here. = Neil Woodford has a place as always as a UK guy = The property fund to an extent doesn't fit my pension objectives per say and to an extent doesn't belong here. However, it's there when taking into consideration all my other portfolios together. Part of the rationale was sometimes property funds get closed to redemptions in tough times. So I didn't want it in other more liquid portfolios that I might want to access. Hence I stuck it in this pension portfolio which I've no plans to access anyway for now, and it doesn't really bother me if it gets closed to redemptions for a while, like many UK property funds did a while back = no fixed income. Similar to what AYG mentioned I see little point in a longer term growth portfolio. The story will be different when I get closer to wanting to draw from it though and portfolio survival/ ability to form income becomes the objective instead of growth I hope Fletch won't be offended, but I feel he and I have similar views on perhaps most aspects of investments. I have liked Stewart Investors (but am cooling a bit towards them). I also hold their Asia Pacific Leaders. I also hold First State Global Listed Infrastructure, though my primary investment in that asset class is Lazard Global Listed Infrastructure. The First State investment was because the particular account I was buying through didn't have access to the Lazard fund. I'm a bit surprised by the Templeton Frontier Markets. Didn't Fletch and I have a discussion a few months ago about the pointlessness of frontier markets? Anyway, I sold out of a similar frontiers market fund following our discussion. I do, however, hold Templeton Emerging Markets Small Cap.. For Global Emerging Markets I've favour JP Morgan Emerging Markets Investment Trust and Aberdeen Emerging Markets (Luxembourg) and still hold both. However, I'm growing disillusioned. Considering selling the Aberdeen fund, and the JP Morgan performance has recently been lacklustre. I also hold EMCR (a US-based ETF) because its composition is rather different from a typical emerging markets fund. I've always been sceptical of global funds, and the evidence is that fund managers aren't very good at selecting in which region to invest. I'm now beginning to doubt global emerging markets funds for similar reasons, and am considering whether I should replace my current global emerging markets investments with Asia-Pacific (i.e. closer to my home economy in Thailand). For real estate I again prefer to stay closer to home. I did invest in Aviva Asia-Pacific Property. Whilst I haven't lost money, it's turned into a bit of a Scheiß Storm. The fund is winding up, and the last property was sold almost 2 years ago, yet I still haven't received all my cash back. I'm rather less keen on physical property than I was a few years ago. (That said, all the evidence suggests physical property is a better diversifier than property shares.) I remain a fan of TMBAM's Property Income Plus Fund (based in Thailand), even though it's property shares, rather than physical. In fact, I topped up my investment with a further 500,000 baht this morning. Good income which should be reliable. (I think Fletch also holds this, albeit not in his SIPP.) My only other comment is that personally I'm not a fan of star names, so personally I would avoid Woodford and Lindsell Train. There are quite a few reasons for this, one is that the funds rapidly get too large and investment strategies that have in the past produced good results no longer succeed; another is that the fund managers go beyond their area of expertise (Bolton's Chinese Special Situations Investment Trust is a prime example of this). The only "star name" I hold is Personal Assets Trust (PNL), managed by Sebastian Lyon of Troy Asset Management fame. He's pretty much a permabear, and for me the trust represents a backstop should everything else I hold turn to Scheiß.
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chiangmai
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Post by chiangmai on Jul 24, 2017 16:17:43 GMT 7
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Post by Fletchsmile on Jul 24, 2017 16:23:20 GMT 7
Perhaps more relevant in the context of retirment would be the portfolio I manage for my mum since my father passed away. It's not a pension portfolio, as my dad bought annuities with their private pensions. The objective though is to supplement my mum's income as a retiree. The aim is to provide an average income of 5% per annum, while maintaining her capital and giving some chance for capital growth. 5% seemed a reasonable takeout based on what I know of portfolio survival rates. I thought about 4% and then just decided it would be better for her to have more to spend, rather than leave it to me and my brother Happy to say it has met it's objectives of 5% return + some capital growth and I don't lose sleep worrying about it either. 1 Woodford CF Woodford Equity Income Class Z 10.00% UK Equity Income 2 AXA Framlington Managed Balanced Class ZI 8.40% Mixed Investment 40-85% Shares 3 Newton Global Income Class U 8.10% Global Equity Income 4 Aberdeen Fund Managers Emerging Markets Equity Class I 7.70% Global Emerging Markets 5 Artemis Strategic Bond Class MR 6.90% £ Strategic Bond 6 Invesco Perpetual Monthly Income Plus Class Y 6.90% £ Strategic Bond 7 Invesco Perpetual Corporate Bond Class Y 6.70% £ Corporate Bond 8 Artemis Strategic Assets Class R* 6.20% Flexible Investment 9 Royal London Sterling Extra Yield Bond Class B 6.00% £ Strategic Bond 10 J O Hambro CM UK Equity Income Class Y 5.60% UK Equity Income 11 Franklin Templeton (Lux) Templeton Global Bond Class A 5.20% Global Bonds 12 Kames Capital High Yield Bond Class A 4.80% £ High Yield 13 Jupiter Strategic Bond 4.10% £ Strategic Bond 14 Standard Life Investments Global Absolute Return Strategies Platform 1 3.90% Absolute Return 15 Henderson UK Property PAIF Class I 3.10% Property 16 BlackRock Gold & General Class DI 2.40% Specialist 17 Jupiter European 2.20% Europe Excluding UK 18 Schroder Tokyo Class H 1.80% Japan ---------------------------------------- The splits currently work out: International Equity 25.6% UK Equity 21.5% Total Equity 47.1%International Bonds 21.4% UK Bonds 14.5% UK gilts 0.6% Total Fixed Income 36.5%Property 3%"Other" being the balance. Which according to Hargreaves Lansdown's portfolio analysis tool, contains 5.3% cash and equivalents, 3.9% hedge funds, among others ------------------------------------------ Another way of looking at it just based on the type of funds is: Bonds/ Fixed Income 34% Equity - growth 14% Equity - income 24% (Total Equity funds 38%) Mixed Funds (mainly equity and bond combined) 15% Property 3% Strategic/Absolute Funds 10%
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chiangmai
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Post by chiangmai on Jul 24, 2017 17:04:47 GMT 7
Perhaps more relevant in the context of retirment would be the portfolio I manage for my mum since my father passed away. It's not a pension portfolio, as my dad bought annuities with their private pensions. The objective though is to supplement my mum's income as a retiree. The aim is to provide an average income of 5% per annum, while maintaining her capital and giving some chance for capital growth. 5% seemed a reasonable takeout based on what I know of portfolio survival rates. I thought about 4% and then just decided it would be better for her to have more to spend, rather than leave it to me and my brother Happy to say it has met it's objectives of 5% return + some capital growth and I don't lose sleep worrying about it either. 1 Woodford CF Woodford Equity Income Class Z 10.00% UK Equity Income 2 AXA Framlington Managed Balanced Class ZI 8.40% Mixed Investment 40-85% Shares 3 Newton Global Income Class U 8.10% Global Equity Income 4 Aberdeen Fund Managers Emerging Markets Equity Class I 7.70% Global Emerging Markets 5 Artemis Strategic Bond Class MR 6.90% £ Strategic Bond 6 Invesco Perpetual Monthly Income Plus Class Y 6.90% £ Strategic Bond 7 Invesco Perpetual Corporate Bond Class Y 6.70% £ Corporate Bond 8 Artemis Strategic Assets Class R* 6.20% Flexible Investment 9 Royal London Sterling Extra Yield Bond Class B 6.00% £ Strategic Bond 10 J O Hambro CM UK Equity Income Class Y 5.60% UK Equity Income 11 Franklin Templeton (Lux) Templeton Global Bond Class A 5.20% Global Bonds 12 Kames Capital High Yield Bond Class A 4.80% £ High Yield 13 Jupiter Strategic Bond 4.10% £ Strategic Bond 14 Standard Life Investments Global Absolute Return Strategies Platform 1 3.90% Absolute Return 15 Henderson UK Property PAIF Class I 3.10% Property 16 BlackRock Gold & General Class DI 2.40% Specialist 17 Jupiter European 2.20% Europe Excluding UK 18 Schroder Tokyo Class H 1.80% Japan ---------------------------------------- The splits currently work out: International Equity 25.6% UK Equity 21.5% Total Equity 47.1%International Bonds 21.4% UK Bonds 14.5% UK gilts 0.6% Total Fixed Income 36.5%Property 3%"Other" being the balance. Which according to Hargreaves Lansdown's portfolio analysis tool, contains 5.3% cash and equivalents, 3.9% hedge funds, among others ------------------------------------------ Another way of looking at it just based on the type of funds is: Bonds/ Fixed Income 34% Equity - growth 14% Equity - income 24% (Total Equity funds 38%) Mixed Funds (mainly equity and bond combined) 15% Property 3% Strategic/Absolute Funds 10% As a model that's not too far removed from where I'm at (or trying to get to), albeit I have yet to do a risk study and determine risk level groupings AND confirm the geographics (which are partially/somewhat hidden in some cases). I've sold my first gilts fund and am awaiting confirmation of the LT Global buy. Tomorrow I'll sell a second gilts and buy Witan. I'm trying to do a recheck and reassess between each set of trades and am still looking for gaps to fill. I may just run what I have through HL's checker and see what it says.
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AyG
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Post by AyG on Jul 24, 2017 17:43:44 GMT 7
I may just run what I have through HL's checker and see what it says. I'm presuming you're based in Thailand, so do bear in mind (as I've previously written) that UK-centric tools of that sort are virtually completely useless for people resident outside the UK. If followed they will lead you down the wrong path by totally ignoring your home currency and home economy.
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chiangmai
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Post by chiangmai on Jul 24, 2017 17:51:34 GMT 7
I may just run what I have through HL's checker and see what it says. I'm presuming you're based in Thailand, so do bear in mind (as I've previously written) that UK-centric tools of that sort are virtually completely useless for people resident outside the UK. If followed they will lead you down the wrong path by totally ignoring your home currency and home economy. Understood. I'm at the stage though where all tools and info is of potential value, until I understand enough to be able to rule something in or out - it's all part and parcel of my learning curve.
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Post by Fletchsmile on Jul 25, 2017 11:55:14 GMT 7
I hope Fletch won't be offended, but I feel he and I have similar views on perhaps most aspects of investments. I have liked Stewart Investors (but am cooling a bit towards them). I also hold their Asia Pacific Leaders. I also hold First State Global Listed Infrastructure, though my primary investment in that asset class is Lazard Global Listed Infrastructure. The First State investment was because the particular account I was buying through didn't have access to the Lazard fund. I'm a bit surprised by the Templeton Frontier Markets. Didn't Fletch and I have a discussion a few months ago about the pointlessness of frontier markets? Anyway, I sold out of a similar frontiers market fund following our discussion. I do, however, hold Templeton Emerging Markets Small Cap.. For Global Emerging Markets I've favour JP Morgan Emerging Markets Investment Trust and Aberdeen Emerging Markets (Luxembourg) and still hold both. However, I'm growing disillusioned. Considering selling the Aberdeen fund, and the JP Morgan performance has recently been lacklustre. I also hold EMCR (a US-based ETF) because its composition is rather different from a typical emerging markets fund. I've always been sceptical of global funds, and the evidence is that fund managers aren't very good at selecting in which region to invest. I'm now beginning to doubt global emerging markets funds for similar reasons, and am considering whether I should replace my current global emerging markets investments with Asia-Pacific (i.e. closer to my home economy in Thailand). For real estate I again prefer to stay closer to home. I did invest in Aviva Asia-Pacific Property. Whilst I haven't lost money, it's turned into a bit of a Scheiß Storm. The fund is winding up, and the last property was sold almost 2 years ago, yet I still haven't received all my cash back. I'm rather less keen on physical property than I was a few years ago. (That said, all the evidence suggests physical property is a better diversifier than property shares.) I remain a fan of TMBAM's Property Income Plus Fund (based in Thailand), even though it's property shares, rather than physical. In fact, I topped up my investment with a further 500,000 baht this morning. Good income which should be reliable. (I think Fletch also holds this, albeit not in his SIPP.) My only other comment is that personally I'm not a fan of star names, so personally I would avoid Woodford and Lindsell Train. There are quite a few reasons for this, one is that the funds rapidly get too large and investment strategies that have in the past produced good results no longer succeed; another is that the fund managers go beyond their area of expertise (Bolton's Chinese Special Situations Investment Trust is a prime example of this). The only "star name" I hold is Personal Assets Trust (PNL), managed by Sebastian Lyon of Troy Asset Management fame. He's pretty much a permabear, and for me the trust represents a backstop should everything else I hold turn to Scheiß. I always appreciate your thoughts AYG so no offence Like on this thread for Chiangmai it's good to get other people's perspectives on what you're holding. If you take them on board, you'll often end up with a better result. You're right we have similar thoughts on a lot of things. Frontier markets while I hear a lot of what you say, I think I'm more positive on them. Here's one of the threads you mentioned bigmango.boards.net/thread/5144/frontier-marketsAs I said at the time, I like Templeton frontier markets as it's a concentrated fund with 70+ holdings now and the top 5 countries accounting for almost half. Patience and long term is key, and as last last time, EMs and frontier markets had been beaten up, but I think Frontiers still deserve a small place, and EMS larger. EMs and Frontier Markets are starting to pick up again I should probably add some more context though as the holding in my SIPP looks unusually large. It's again because my SIPP is one of my smaller portfolios. Also like the property fund, I stuck the fund there as I don't expect to draw on it or touch it. It also needs one of the longest term views and patience, so sticking it in a SIPP I'm not going to access made sense, allowing more liquid funds in other portfolios. (I also hold a little in my ISA). I also consider it an agressive growth play Again in context though, if I aggregate all my portfolios across UK , Singapore and Thailand, then Templeton Frontier is only about 1%. The other 7 holdings in my SIPP are more normal. It's mainly the property fund and FM fund that are there partly for other reasons For real estate, as you mention, we also hold TMB PIPF in Thailand. The longer I hold it, the more I like the fund. We're considering selling our condo, and if that happens we'll definitely add to it as I'd prefer holding this type of fund to physical property in Thailand as a pure investment. I also have a Singapore REIT portfolio of individual REITS, many of which TMB PIPF invests in. Buying the individual REITs direct via Singapore cuts down the costs vs TMB PIPF Also as mentioned I've a large holding of Thai equity funds in Thailand too. As you say that needs considering in contrast to a UK pension in the UK for a UK based pensioner I hear you on the star names. I've been with Woodford for 25 years+ and he's still delivering though. I'm mindful it won't last for ever though and there's a very good chance he won't have another 25 years on his career Unlike Anthony Bolton though, who strayed into China instead of what his core history showed him to be good at, Woodford's income unit trust still sticks to his core expertise. Also UK Equity Income is a massive market so although his fund is huge there is naturally a lot of choice. Still like I say I'm mindful. The fund itself is 4th out of 84 unit trusts over the short period of 3 years or so it's been around. His previous Invesco Perpetual Fund was a leader for 20 years+.
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Post by Fletchsmile on Jul 25, 2017 12:16:21 GMT 7
....................................... For Global Emerging Markets I've favour JP Morgan Emerging Markets Investment Trust and Aberdeen Emerging Markets (Luxembourg) and still hold both. However, I'm growing disillusioned. Considering selling the Aberdeen fund, and the JP Morgan performance has recently been lacklustre. I also hold EMCR (a US-based ETF) because its composition is rather different from a typical emerging markets fund. I've always been sceptical of global funds, and the evidence is that fund managers aren't very good at selecting in which region to invest. I'm now beginning to doubt global emerging markets funds for similar reasons, and am considering whether I should replace my current global emerging markets investments with Asia-Pacific (i.e. closer to my home economy in Thailand). ..................... On Global Emerging Markets, as we've said before Aberdeen have been thru a though patch and that includes their Thai funds. I wouldn't add to their Emerging markets or Thailand funds unless other choices were very limited. Emerging markets generally are starting to pick up again after a tough time and in my view look an opportunity, particularly relative to say US. If looking at the Frontier Market space, Templeton Frontier markets unit trust is worth a look. Strong performance from a quality fund management house and focused. Stewart Investors/First State seem to have hit a mediocre patch, but given the strong history of returns I've had from them relative to the market I'll stick with them. Several of their funds have been soft closed, so won't be available to many investors On the investment trust side, Blackrock Frontiers Investment Trust is well worth a look, AYG. I added it when building an investment trust portfolio in Singapore and haven't been disappointed. It trades at a slight premium now which I dislike. But the 3.5% div yield is quite nice to collect while waiting for capital growth. www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=MAFD9&univ=T&pageType=overview
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AyG
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Post by AyG on Jul 25, 2017 12:30:24 GMT 7
Woodford's income unit trust still sticks to his core expertise. Also UK Equity Income is a massive market so although his fund is huge there is naturally a lot of choice. True. However, recently he's definitely stepping outside his focus of expertise, with his Income Fund (being global, rather than UK), and his Investment Trust, Patient Capital. These ventures might prove a distraction for him. And I must say (and it's not Woodford specific) that at the moment I wouldn't particularly like to hold any equity income fund investing in developed markets. Prices have been pushed up by the demand for yield given that bonds are no longer able to provide that in the current economic morass. When things start to normalise there's going to be a lot of downward pressure on higher income equities. Fortunately, as a UK expat I'm not subject to UK capital gains, so it doesn't matter whether I take capital gains or natural income to fund my life here. One investment trust that I held for a few years in the income space was Schroder Oriental Income (SOI). It did pretty well, but I came to feel there were better opportunities out there. Over the last couple of weeks I've been thinking about rebuying it. Currently yielding 3.43%. 10 year annualised return of 12.28% (11.37% NAV return), which doesn't suck. However, it is trading at a slight premium to NAV (<1%) (again probably reflecting the demand for income in today's investment climate).
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Post by Fletchsmile on Jul 25, 2017 14:35:14 GMT 7
chiangmai, I really have to question your very high allocation to conventional bonds (including Gilts). At the best of times, bonds provide a small level of income, and will eventually be redeemed at par (meaning that capital growth is typically severely limited, too). In markets as they stand now, the price of Gilts (and other bonds) has been driving sky high thanks to the misguided economic policies of various governments across the globe. When interest rates start to rise, the price of Gilts will fall, leaving you with a capital loss. In my opinion, conventional bonds have no rational place in a retirement portfolio. (There is one possible exception: a fund which uses bonds as a vehicle to express the skills of the manager(s) in selecting bonds across a wide range of maturities and markets. In other words you are paying for the skill of the managers, rather than paying for exposure to a single asset class. One such fund is Invesco Perpetual's Tactical Bond fund, run by star managers Read and Causer. However, its performance since launch has been lacklustre. M&G Strategic Corporate bond, which you hold, has done even worse. This is probably an area you probably shouldn't get into. However, if you do, have a look at Henderson Diversified Income Investment Trust [HDIV], which I do hold.) There is a case to be made for holding index linked bonds, including index-linked Gilts and US TIPS (as a hedge against inflation), and a somewhat weaker case for holding Emerging Markets Bonds, which have more equity-like characteristics. ........ ........ Finally, (for now at least) you could handle a lot of the diversification issues by buying funds which dynamically invest across asset classes according to market conditions, but in a conservative manner. Investment trusts such as Ruffer (RICA) and Personal Assets (PLN) would fit the bill very nicely (PNL is the more conservative of the two). Both are strongly committed to preserving capital. In the unit trust space there's Newton Real Return, Invesco Perpetual Global Targeted Returns, SLI GARS and others. Just on the bond funds mentioned, I've looked at Invesco Perpetual Tactical bond fund many times as it seems to crop up a fair bit. I rate the fund managers Paul Read and Paul Causer quite highly and have other funds they have input into. When Neil Woodford was at Perpetual some of the mixed funds were quite nice with him looking after the equity side and the the Pauls looking after the bonds. Whenever I look at the Tactical Bond's performance though it's never lived up to the hype and never delivered what it should be capable of. I just looked again and it's comfortably below the unit trust strategic bond sector average. Always seems disappointing. I also hold a little of HDIV but have been disappointed to date. I much prefer Royal London's Sterling Extra Yield fund. In isolation it looks perhaps a higher risk bond fund. If considered as part of a portfolio though in my view it's much more acceptable. If I could only choose one bond fund it would definitely make the shortlist. Currently yields around 6.6%. Charges are quite reasonable too for such quality active management. 0.83% total expense ratio, but buying through Hargreaves Lansdown there's a saving on that of 0.43% which brings it down to 0.4% total ongoing charge. No initial charge thru HL either and single pricing. Return of 69% over the last 5 years is not to be sneezed at and each of the last 5 discrete 12 month periods are positive www.trustnetoffshore.com/Factsheets/Factsheet.aspx?univ=DC&fundCode=RPF65&pagetype=overviewFor the total return fund unit trusts mentioned I've also held a couple in the past, but generally I've a history of being disappointed with absolute/total return/strategic funds. Somehow the actual results never seem to measure up to the theory. They're OK. Reasonably solid, and maybe OK as a conservative core. But on the other hand if you have good funds and asset allocations then I often seem to have fared better with more traditional equity and bond funds used alongside you. i.e get your portfolio right and well diversified and they don't seem so useful. Still maybe a place for some people. Newton Real Return and SLI GARS have been poor in recent years, even though often hyped. They've returned around 17% each over 5 years. Invesco seems to have fared a bit better but I only saw the 3 year comparatives. Better in that unit trust space I believe is Artemis Strategic Assets. 37% in 5 years has met the criteria of 5% p.a. takeout + some growth I set for my mum's portfolio and acceptable (works out around 7%-ish). Not going to set the world on fire but a reasonable return and worth a thought as a steady performer. I like William Littlewood as a manager, even though I feel he could do more in this case. He has around 8% in gold ETFs and 4% in Platinum ETFs which have maybe dragged performance a bit. However, I like the fact his portfolio is a bit different and considers alternatives to just equities and bonds to help be more defensive. Myself I've sold off many of my physical commodity funds/ETFs in recent years, but this could be a reasonable way for someone to get a little exposure and diversify a portfolio further. The case for holding Artemis for me is stronger than the other 3 unit trusts mentioned. I've looked at RICA and PNL a few times, both have 5yr annualised performance around the 5% mark per Bloomberg, one just under one just over. Better than the 3 unit trusts above, but not compelling enough to justify switching from Artemis. So if looking for a bond fund have a look at Royal London. If looking for a strategic assets/ defensive fund have a look at Artemis Strategic Assets
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chiangmai
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Post by chiangmai on Jul 26, 2017 7:56:23 GMT 7
A more general question:
Once I get my drawdown fund squared away I intend to establish a second portfolio which is not pension related, I'm doing this to make better use of underutilized Sterling that is sat in a UK bank - my risk tolerance for the new portfolio is exactly the same as for my existing drawdown.
My question is, having come up with a pension drawdown portfolio that makes a lot of sense to me, would you simply replicate that portfolio or start again from scratch? It seems to me that more or less replicating it is the sensible thing to do since the objective is to utilize funds rather than change the risk profile, I can't see me wanting to change the asset allocation hence changing funds would only protect against individual fund performance. Thoughts?
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AyG
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Post by AyG on Jul 26, 2017 8:08:37 GMT 7
In your circumstances I would simply replicate the portfolio. Monitoring investments well takes time and commitment. And there's really never much point in having more than about 10 different funds/ETFs (or 20 shares) to be adequately diversified.
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AyG
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Post by AyG on Jul 26, 2017 10:49:03 GMT 7
This may seem obvious, but it's only just occurred to me, when it comes to rebalancing you can save transaction costs by only rebalancing in one portfolio. (E.g. if in portfolio 1 you need to sell 5 of fund x, and in portfolio 2 you need to sell 3 of the same fund, just sell 8 in portfolio 1 or 2 - whichever has the lowest transaction costs.)
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chiangmai
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Post by chiangmai on Jul 26, 2017 18:21:53 GMT 7
This may seem obvious, but it's only just occurred to me, when it comes to rebalancing you can save transaction costs by only rebalancing in one portfolio. (E.g. if in portfolio 1 you need to sell 5 of fund x, and in portfolio 2 you need to sell 3 of the same fund, just sell 8 in portfolio 1 or 2 - whichever has the lowest transaction costs.) You mentioned some time back, in a PM I think, that you moved from Transact to HL, I think you said because of costs. Presumably you moved unwrapped funds? My drawdown at Transact is wrapped and I think I saw that HL only accepts unwrapped funds. That's not a big a deal for me because I actually like Transact and the people there have been extremely helpful shortly after I lost my first IFA, they were happy to chat through options and provided useful pointers. And since I'm going to build a second portfolio I should be able to avoid the extra fees that Transact typically charge execution only clients, plus of course I have no IFA commission charge.
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