AyG
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Post by AyG on May 30, 2020 20:57:50 GMT 7
It's a relatively recent purchase for me. I bought it for its defensive properties. I was utterly wrong. YTD it's down 14.5%.
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Post by rgs2001uk on May 30, 2020 22:02:11 GMT 7
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chiangmai
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Post by chiangmai on May 31, 2020 4:46:20 GMT 7
Let me say at the outset that Rubl is innocent, well, mostly! Source of Funds - accumulated cash plus excessive holdings in bonds that needs to be reduced as those funds come good. Plus, some cash in a temporary bond fund home that needs a final resting place. Objectives - reduce bond exposure, increase equities exposure, improve reliable dividend earnings, reduce potential risk of loss by some switching to IT's, increase global exposure. Ok, so that answers my previous question, its not just having a few quid you are willing to have a punt with, sounds just like my mrs, moving the furniture around 555. As I mentioned earlier, I am the last person to ask, I hold all of them. Do you hold any of them already, eg adding to existing holdings, or will these be new buys? Thats a good spread of capital gains, eg SM, and regular income in the form of dividends with Brunner and Banker. If you told me you were investing in all of them, I wouldnt try to dissuade you. Rearranging deckchairs on the Titanic more like! No, I don't hold any of them currently but most of them have been on previous short lists many times, I have held Witan and only sold it as part of the great rearrangement of 2019. At present I hold: Equities First State Asia Focus - 13% Baillie Gifford Int - 12% LT Global - 10% JPM EM - 9% L&G US Index IT - 8% Fidelity Offshore European Dynamic Growth - 8% LT UK Equity - 7% Amati UK Smaller Companies - 5% Fundsmith - 4% Bonds Royal London Sterling Extra Yield - 10% Mann GLG Strategic Bond - 10% Baillie Gifford Strategic Bond - 2% Notes Because I hold the L&G US Index IT, Fundsmith is largely redundant. BG Bond is a temporary savings account. RL Sterling will be reduced when it improves. Mann GLG is holding its own pretty much. BG Int is a star but is at the maximum for me. All equity funds are ACC, except L&G US Index. SOI looks interesting but there's considerable overlap with First State Asia is a concern I need to examine. China, HK and Taiwan political risk is also an issue for me to come to terms with. Overall I'm very pleased with the way my holdings compensate for each other and I wouldn't look to change the core holdings, I'm not that far away from being fully recovered following the crash, still about 6% down but in good shape really apart from overweight in bonds and Fundsmith. So changes now are about housekeeping, improving dividend and reducing risk.
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AyG
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Post by AyG on May 31, 2020 7:22:07 GMT 7
All equity funds are ACC, except L&G US Index. So changes now are about housekeeping, improving dividend and reducing risk. So, have your requirements changed? It seems odd to have invested in accumulation funds if you want income. One simple fix might be to switch from accumulation to distribution units of the funds you already have. If you're UK resident, you'd have to watch out for CGT, though. If you're seriously looking to reduce risk, the one fund that sticks out as being inappropriate is Amati UK Smaller Companies. I'd also put a question mark against JMG. To reduce downside risk you might consider reinvesting in one of the permabear ITs such as RICA or PNL. Won't give you much income, though.
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chiangmai
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Post by chiangmai on May 31, 2020 10:40:26 GMT 7
All equity funds are ACC, except L&G US Index. So changes now are about housekeeping, improving dividend and reducing risk. So, have your requirements changed? It seems odd to have invested in accumulation funds if you want income. One simple fix might be to switch from accumulation to distribution units of the funds you already have. If you're UK resident, you'd have to watch out for CGT, though. If you're seriously looking to reduce risk, the one fund that sticks out as being inappropriate is Amati UK Smaller Companies. I'd also put a question mark against JMG. To reduce downside risk you might consider reinvesting in one of the permabear ITs such as RICA or PNL. Won't give you much income, though. No, my requirements haven't changed, I'm getting rid of one of my bond funds which provides income (BG) and downsizing RL Sterling Extra Yield which also provides income. At the same time I'm likely to get rid of Fundsmith because of overlap and I want to replace all three with equity based funds that are lower risk (hence IT's) and also provide income. I hear what you say about Amati but I want to keep a toe in the water and 5% is a small toe! And I'm quite happy with the risk that JPM brings with it, I think EM is the future and JPM is a solid fund. No issue with CGT, even though I'm UK resident for tax purposes, this is ring fenced pension money.
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AyG
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Post by AyG on May 31, 2020 11:11:05 GMT 7
^^^ All good points.
Just one thing about JMG, whilst it describes itself as "Emerging Markets" it isn't really. It's more Asia Pacific. I think I've mentioned before that I've held it since 1993. (My offices in Bishopsgate were blown up in that year by the IRA and we decamped to JPMorgan premises. It's that exposure that persuaded me to buy it.) Against my better instincts I continue to hold it because of its performance. (I'm not comfortable with a couple its larger holdings viz. Tencent, and Alibaba.)
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chiangmai
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Post by chiangmai on May 31, 2020 11:25:51 GMT 7
I agree it's not really EM but it's what it's not that's important (although that is changing also). I have some sympathy for the naming nomenclature. Sometimes when I'm trying to research my options on Trustnet or MS I want to quantify my search as being, not USA, not UK, not Europe and not developed Asia and then see what's left that's sensible.
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Post by rgs2001uk on Jun 1, 2020 20:30:57 GMT 7
^^^^ CM, been there done that, my portfolio these days is nothing like it was 10 years ago.
Thanks to the lads on here I was introduced to the likes of MW and Fundsmith, I have no problem with overlapping.
In my slow thinking mind, I have basically broken the world into the following,
USA, anything south of the Rio Grande holds no appeal to me, I think of basket cases like Brazil and Argentina.
UK.
Europe.
Asia, no interest in the Middle East, India or Pakistan, corruption springs to mind, so basicaaly left with , China, Japan and Korea, I am not saying any of them are corruption free, but coverage of Asia will be covered by International global funds.
Thats it, emerging markets, will be covered by global funds.
My portfolio has the following coverage.
Chemicals 9.0% Croda, they are on my watch list, and if they dont get it together in the next couple of years, they will be gone, I have done well out of them, but will not let sentiment get in the way.
UK Invests, 6.5%
Nth America 2.5% (Artemis)
European, 8.4%
Global ITS, 73.5%
As mentioned before, horse for courses, I agrre my breakdown isnt for everyone, but its what I can live with.
PS, estimated yield for the above portfolio is, 1.3%, suits me as someone going for growth, but wont suit someone wanting regualr income.
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Post by rgs2001uk on Jun 1, 2020 21:37:01 GMT 7
For CM, just done some quick back of a fag packet calculations. as mentioned above,
Purchase price v todays price.
1, + 18.4%
2, - 5.2%
3. + 3.0%
4, - 13.0%
5, + 65.4%
total for portfolio, + 41.7%.
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chiangmai
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Post by chiangmai on Jun 2, 2020 4:18:07 GMT 7
For CM, just done some quick back of a fag packet calculations. as mentioned above, Purchase price v todays price. 1, + 18.4% 2, - 5.2% 3. + 3.0% 4, - 13.0% 5, + 65.4% total for portfolio, + 41.7%. There's a lot to be said for Global Funds that have the flexibility to switch between markets and regions, I've seen that repeatedly in my limited time in investing, especially with BG.
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AyG
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Post by AyG on Jun 2, 2020 7:13:57 GMT 7
I have held Witan and only sold it as part of the great rearrangement of 2019. Witan has never really appealed to me. I don't like the fact that it regularly takes out full page advertisements in Private Eye. And I didn't like the way it was managed pre-reform. Anyway, a bit of behaviour reported today gave me further reason to doubt it:
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chiangmai
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Post by chiangmai on Jun 2, 2020 10:13:41 GMT 7
Private Eye!!! Shows class for an investment fund.
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AyG
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Post by AyG on Jun 2, 2020 13:38:45 GMT 7
There's a lot to be said for Global Funds that have the flexibility to switch between markets and regions, I've seen that repeatedly in my limited time in investing, especially with BG. Just a couple of thoughts - unanswered questions, really: (1) To what extent do global funds mirror the countries weighted by stockmarket size? (Couldn't think of a way of expressing that more clearly.) Usually the US ends up weighted around 65% in such funds, and there's no rational reason to assume that the US will be the best performing market year after year. (2) Do UK-based global funds have a different approach from, say US or European ones? If so, why? (3) Do global funds really switch allocations in response to events? Particularly in the case of Baillie Gifford I doubt it since they have a strong house view and funds have pretty low turnover. Isn't it more likely that their success comes from strong stock selection, rather than well-timed switching? Whilst I do hold some global funds, they only represent 18% of my portfolio (and even that is a mistake since my target allocation is 15%, but I haven't rebalanced recently). Generally I prefer to pick the best of breed funds in each region. I would like to think that, say, an expert in Asian stocks, would do better than a generalist in the same area.
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Post by rgs2001uk on Jun 2, 2020 20:01:15 GMT 7
For CM, just done some quick back of a fag packet calculations. as mentioned above, Purchase price v todays price. 1, + 18.4% 2, - 5.2% 3. + 3.0% 4, - 13.0% 5, + 65.4% total for portfolio, + 41.7%. AL1 for CM, #3 should have read 30% not 3%, my bad, www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/a/artemis-us-select-class-i-accumulation/charts
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Post by rgs2001uk on Jun 2, 2020 20:43:22 GMT 7
For CM. #1, chemicals, already mentioned hold Croda, www.hl.co.uk/shares/shares-search-results/c/croda-international-plc-ordinary-shares#2, UK invests, hold these, www.hl.co.uk/shares/shares-search-results/b/blackrock-smlr-cos-tst-25pwww.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/t/tb-evenlode-income-b-income/charts #3 America, hold this, www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/a/artemis-us-select-class-i-accumulation/charts #4 Europe hold these. www.hl.co.uk/shares/shares-search-results/e/european-opportunities-trust-ord-gbp0.01www.hl.co.uk/shares/shares-search-results/f/fidelity-european-values-plc-ordinary-2.5p
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