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Post by rgs2001uk on Jan 31, 2018 21:29:47 GMT 7
Carrying on from a previous thread, the following have been identified, thoughts pls gents. www.hl.co.uk/shares/shares-search-results/b/bhp-billiton-plc-ordinary-us$0.50Nice divi (not needed) take the money and run, better value to be had elsewhere? www.hl.co.uk/shares/shares-search-results/c/croda-international-plc-ordinary-10.357143pNot yet decided, but may well hold. www.hl.co.uk/shares/shares-search-results/w/whitbread-plc-ordinary-76-122153pSorry times up a goner. www.hl.co.uk/shares/shares-search-results/a/associated-british-foods-ord-5,1522p Have done well out of this one over the years, sorry times up. www.hl.co.uk/shares/shares-search-results/t/templeton-emerging-markets-i.t.-ord-25pNice 1 and 2 year figures, have been having second thoughts about it, a while back it was a goner, still thinking off selling. www.hl.co.uk/shares/shares-search-results/c/caledonia-investments-plc-ordinary-5pSorry out the door you go. The above will be sold and split into Scottish Mort, Alliance, Witan and Monks ITs.
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Post by Fletchsmile on Feb 1, 2018 12:54:52 GMT 7
I hold very few individual shares these days, and with a few exceptions continue to phase them out. Monitoring and keeping on top of individual shares is a time consuming exercise. Then to see how they compare to the general market and what alternatives there may be in other individual shares relatively is a very wide task indeed. So in recent years I moved even further towards collective investments.
So I don't follow any of the individual shares you mention in any detail. But a few generic thoughts:
I also like HL for quick snapshots of companies and as a resource for monitoring shares. So noticed you'd also used them in the links you posted. Digital Look is good too. they're not the be all and end all but always worth a check for any holdings or potential holdings, when evaluating to buy/sell/hold or not
Consider just selling and adding to a relevant investment trust, unit trust or ETF. If you like certain things about the share look for a collective investment that will capitalise on that. They can do all the continual spadework on individual comapnies, particularly looking into relatively more attractive shares with perhaps better perspective. If you don't like something about it and its a sector/ geographical issues etc go for something different.
BHP I used to hold the AUD version and it served me well for years. I sold it though along with all other AUD individual stocks. Not really because of BHP or my AUD stocks as individual holdings just as a general tidy up. (Plus tax on AUD divs is annoying). I used to hold RIO too and did the same with that. Resource stocks have been beaten up badly in recent years, although they have started recovering. I still think there is more recovery to come for them. So at a similar time as selling BHP, I also increased my holdings in Blackrock World mining Trust BRWM. Most resource UTs and ITs will have a significant weighting in BHP and RIO anyway as they are giants in the sector. The jury is still out on resource funds for me for the long term, but while there is still recovery potential, shifting to BRWM was a nice way of removing the individual share element while retaining a key reason for why I might have held it. Between them BHP and RIO make up almost 20% of BRWM, which also pays a 3% div
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Post by Fletchsmile on Feb 1, 2018 13:11:12 GMT 7
Croda, Whitbread and Associated British foods, I don't have any particular views on without doing any research.
In addition to HL and Digital Look, it's worth being mindful sometimes of which funds you hold might hold them and why, and what they are doing with them. Just had a quick look at some of my preferred UK funds, Woodford Income, Lindsell Train UK Equity and FGT. None of them feature in the top 10 of any of these funds.
Just my own style of investing these days, I don't know a compelling reason for me to hold the 3 individual shares (and even less so relative to the other thousands of UK stocks), so picking ITs I'm happy with with as you're considering is the way I'd go.
As an observation, the ITs you have highlighted have somewhat different focuses though than these 3 UK shares. So if you do switch to the ITs you've highlighted, does it affect your portfolio mix in a way you're comfortable with? Or would something like FGT be preferable to retain a bit better existing weightings/ sectors/ geographies etc. i.e is the reason for offloading idiosyncratic so due to the individual shares and you're looking for not too dissimilar replacements, or is it a macro level you're concerned about large UK blue chips as a sector?
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Post by Fletchsmile on Feb 1, 2018 13:26:23 GMT 7
Templeton Emerging Markets I've seen elsewhere you say that they haven't performed as well as you'd have liked in recent years. When you say that though the question I'd ask is what are you measuring them against?
If relative to other EM funds, or an EM index, and you've identified better, then makes sense to consider switching to other EM funds.
But if you're comparing to other funds in other sectors/ geographies then in all likelihood they will have performed worse in recent years. My EM funds have generally underperformed vs some of the other more developed markets in recent years. But that's more a reflection and the sectors than individual stock picking and the fund managers alpha in their sector.
EMs have had a tough time no doubt.Last year they started to pick up though. relative to DMs tho unless all markets tank, I think they look attractive going forward, and the years of under-performance look like they will turn.
Just in the process of looking at the month-end, including some of the world indices YTD. HK up nearly 10%, Vietnam up nearly 13%, Brazil up 11%, China around 6%, etc. There's definitely some interest/ potential there.
So if you are selling the EM theme relative to other holdings I don't think the timing is right for that, after the relative years of underperformance, and would want to keep the EM exposure if me. Again the ITs you like are generally in different areas. So for me if I like EMs going foward why would I switch to say Witan? Even though I like Witan
So I'd keep the EM expsoure. The question that leaves though is whether Templeton is the right fund to keep for that going forward. That needs a bit more research. I'd hold it for now, to get the EM beta, but do more research and see if there are better EM options out there for you going forward.
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Post by rgs2001uk on Feb 1, 2018 22:18:03 GMT 7
^^^ Fletch, thanks for your comments and observations.
Your multiple posts require a more detailed response than I am able to give right now, I have too much repsect for you than to reply with flippant one liners, in fact, it may take me two or three days to compose a suitable reply.
Cheers, thanks.
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AyG
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Post by AyG on Feb 2, 2018 7:15:38 GMT 7
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Post by AyG on Feb 2, 2018 8:36:30 GMT 7
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AyG
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Post by AyG on Feb 2, 2018 9:02:53 GMT 7
My own thoughts on TEMIT (which I sold out of a year or so back. I'm currently locked out of my account so can't be more precise.): - Are you happy with 21.8% exposure to China? I personally believe valuations there are very highly stretched thanks to high domestic demand. - Does 21.8% China and only 5.4% India make sense? - Do you really want exposure to technology companies such as Alibaba (3.8%), Baidu (0.7%), Tencent (3.0%)? It could be a case of "here today, gone tomorrow". Who now remembers Altavista, Yahoo, eToys, AOL, Napster, Netscape, Pets.com, &c., &c.? The barriers to entry in the Internet space are relatively low. - If you want real Emerging Markets, are you happy with substantial holdings in South Korea (14.3%) and Taiwan (9.4%)? They seem pretty developed to me. - Do you want exposure to commodities? I don't. Too volatile. Bovespa 1.1%, CPC 1.1%, CNOOC 1.1%, Coal India 0.4%, Gazprom 1.2%, LUKOIL 1.7%, PTTEP 0.4%. Those are just the names I recognise. I'm sure there are more. - Is exposure to Brazil (8.3%), Russia (7.5%) or South Africa (6.2%) relevant to you? (This rather overlaps with the commodities question.) More to my taste are Pacific Assets Trust (PAC) and Schroder Oriental Income (SOI). Here's a comparative chart of TEMIT (A), PAC (B) and SOI (C).
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Post by Fletchsmile on Feb 2, 2018 12:16:26 GMT 7
^^^ Fletch, thanks for your comments and observations. Your multiple posts require a more detailed response than I am able to give right now, I have too much repsect for you than to reply with flippant one liners, in fact, it may take me two or three days to compose a suitable reply. Cheers, thanks. Flippant one liners always welcome too
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Post by Fletchsmile on Feb 2, 2018 12:46:38 GMT 7
My own thoughts on TEMIT (which I sold out of a year or so back. I'm currently locked out of my account so can't be more precise.): - Are you happy with 21.8% exposure to China? I personally believe valuations there are very highly stretched thanks to high domestic demand. - Does 21.8% China and only 5.4% India make sense? - Do you really want exposure to technology companies such as Alibaba (3.8%), Baidu (0.7%), Tencent (3.0%)? It could be a case of "here today, gone tomorrow". Who now remembers Altavista, Yahoo, eToys, AOL, Napster, Netscape, Pets.com, &c., &c.? The barriers to entry in the Internet space are relatively low. - If you want real Emerging Markets, are you happy with substantial holdings in South Korea (14.3%) and Taiwan (9.4%)? They seem pretty developed to me. - Do you want exposure to commodities? I don't. Too volatile. Bovespa 1.1%, CPC 1.1%, CNOOC 1.1%, Coal India 0.4%, Gazprom 1.2%, LUKOIL 1.7%, PTTEP 0.4%. Those are just the names I recognise. I'm sure there are more. - Is exposure to Brazil (8.3%), Russia (7.5%) or South Africa (6.2%) relevant to you? (This rather overlaps with the commodities question.) More to my taste are Pacific Assets Trust (PAC) and Schroder Oriental Income (SOI). Here's a comparative chart of TEMIT (A), PAC (B) and SOI (C). I hear you on Templeton. For a house that has made a significant part of their reputation on EMs and investment, in latter years they don't seem to be fairing so well. I like listening to their perspectives but not many of their funds these days are ones I'd investment in. Their results don't seem to match up with their years of experience in many areas now. I also share some of your thoughts on their allocations, which are shall we say not exactly typical of EM funds. They have a habit in many funds of strange allocations within wide remits. It's worked well in the past, and I've actually appreciated their funds often being different to others for diversification - just park some money and let them get on with it - but it's worked less so in recent years. Their bond funds spring to mind here too, and I've reduced exposure to them as well. So all in all I have reservations about Templeton generally, and some reservations on the allocations of this particular fund too. Plus as you say if the manager has moved on, that's always cause to at least reconsider and watch carefully. Commodity producers BTW I think have a least a short to medium term place in diversified portfolios in some form given how economies world over are picking up, and how beat up many of the companies have been. Just listening too a bit about RDSA's results recently and highlights how they and sector have some interesting points. Russia and Brazil are 2 countries offer interesting potential and diversification. Both countries main indices have had great starts to the year. Russia up around 9% and Brazil 11% so far this year. Financials are often another big sector for these countries, in addition to commodities. Utilities is also often in there for EMs as well. A lot of EM funds these days are overly focused on Asia, so the Brazil and Russia exposures could be useful in my view. BTW PAC and SOI are funds of interest, and may warrant some of a switch from TEMIT. I'd still be thinking about that wider exposure to EMs outside Asia from somewhere to supplement them with though, unless someone already has it
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Post by rgs2001uk on Feb 2, 2018 22:25:34 GMT 7
For AyG and Fletch, sorry still havent composed a reply, however rxd this from stockbroker today, FYI purposes only and thoughts,
Dear xxx
Further to our telephone conversation on Wednesday, and subsequent email correspondence, I now have pleasure in attaching contract notes confirming the following sales, as instructed.
xxx BHP Billiton
xxx Whitbread
xxx AB Foods
xxx Caledonia Investment Trust
We discussed your idea to split the proceeds and the cash currently on deposit in three, adding c.£xxxxx to Monks Investment Trust, Scottish Mortgage and Witan. As I highlighted, I would not be hugely in favour of this approach, given that these are already large positions within your portfolio. Monks and Scottish Mortgage both represent over 9% of your portfolio, whilst Witan is almost 7%. Over 25% of your investments are already held in these three stocks.
You subsequently mentioned that you would be keen to add to some of your existing holdings, in order to reduce things to a more manageable level. I completely understand, but even if we are to focus more on equity funds, as has been the case recently, I would be comfortable with up to 15-20 holdings.
My recommendation would be to split the proceeds between three new equity funds and would suggest BlackRock Smaller Companies, Artemis US Smaller Companies and Fundsmith Equity. Each of these funds are more growth focused and would provide further spread and diversification to your portfolio. Smaller companies tend to offer greater growth prospects and your portfolio is currently under-represented in the smaller cap space. You have some good generalist global funds in place and therefore I think there is scope to add these slightly more specific ideas. Please find attached a background note on BlackRock Smaller Companies as well as a Key Information Document. I also attach factsheets and Key Investor Information Documents for Artemis US Smaller Companies and Fundsmith.
If you are adamant that you only wish to add to existing ideas, I would suggest Bankers, Brunner and Templeton Emerging Markets, although I would prefer adding the three new ideas. Key Information Documents for Bankers, Brunner and Templeton Emerging Markets are also attached.
If you would like to go ahead, or if you have any further questions, please let me know.
Kind regards.
My main concerns are,
BlackRock Smaller Companies
Artemis US Smaller Companies
Fundsmith Equity
Must admit, have never heard of them, more homework required,
ปวดหัว, ฝรั่งคิดมาก
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AyG
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Post by AyG on Feb 3, 2018 9:06:31 GMT 7
Just a few quick thoughts:
BlackRock Smaller Companies - is that the fund or the investment trust? The trust has (perhaps not unsurprisingly) performed better, and is currently on a 13% discount to NAV.
Fundsmith Equity has performed extremely well. However, I have an innate aversion to star fund managers. I also don't like enormous (and hence inflexible and company size-constrained) funds.
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Post by chiangmai on Feb 3, 2018 10:55:22 GMT 7
Terry Smith at Fundsmith is interesting, he's vehemently against short-termism and is into his plays on a long-term basis - I've held Fundsmith for six months and it has performed well.
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AyG
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Post by AyG on Feb 4, 2018 11:26:22 GMT 7
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Post by rgs2001uk on Feb 4, 2018 13:55:41 GMT 7
AyG and CM, thanks for your input.
Its food for thought, and may well be the kick up the back side I needed, too set in my ways, its an area I have NEVER looked at, I stuck with what I knew and ignored everything else, tunnel vision.
AyG, yes Blackrock is the fund.
Just read the link provided for Fundsmith, and will admit, I am not into short termism.
I have no problem putting money into Fundsmith or Blackrock, Artemis will never further investigation.
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