chiangmai
Crazy Mango Extraordinaire
Posts: 6,233
Likes: 5,242
|
Post by chiangmai on Jun 3, 2020 7:07:00 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. I can only answer these points on a theoretical or maybe logical basis, practitioners in the field would know much more precisely of course. Logic suggests that if the economy of one particular country is doing poorly, a fund that is permitted to invest in a second country has an advantage over those funds that are unable to diversify, whether that happens in practise is of course another matter. From a risk perspective I would tick and pass the fund that can diversify whereas the single country fund would likely get a demerit. US vs EU vs UK: Whilst the US is the biggest market globally there doesn't seem to be the same proportion of expert fund managers there as in the UK, perhaps that's because the market is so large that the job is more complex or perhaps there are but we don't hear about them so much. And perhaps the degree of market regulation is a factor, consumer protection laws in the UK suggest the regulatory overhead is huge and that rule breakers will be shot at dawn...perhaps that keeps UK FM's/houses more, er, I want to say honest but that's clearly not the right word! US vs UK vs EU: I have read that whilst the US market is the biggest in the world there are not that many fund managers, propr who excel at getting it right on a consistent basis.
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,233
Likes: 5,242
|
Post by chiangmai on Jun 3, 2020 7:08:53 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-2.5pI was going to ask you if you have any hobbies rgs but I think I know the answer. )
|
|
|
Post by rgs2001uk on Jun 3, 2020 20:15:34 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-2.5pI was going to ask you if you have any hobbies rgs but I think I know the answer. ) , as mentioned before, I wont be doing any investing this year, all the stocks I hold can freewheel til the end of the year, then will be reviewed, any that dont make the cut will be sold and proceeds reinvested into existing holdings.
|
|
|
Post by rgs2001uk on Jun 3, 2020 20:25:24 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. I was surprised today on doing a check on Scottish Mortgage, hope this answers QI. Q2 sorry, no idea. Q3. I would like to think it would be best practice not to be limited to a rigid template of geographical location/spread, I am not saying I am advocating a follow the money school of thought. I concur ref stock selection, what sectors are they investing in? Years ago in the UK, your average pensioner, wanting dividends to top up their pensions, would have had exposure to the following, Banking, eg HSBC, Std Chart etc etc Financial services, eg, Prudential Oil and Gas, BP etc Natural resources, eg Rio Tinto Pharmas, eg GSK and Astra Zeneca Retail, M&S, Tesco. Telecomms, eg Orange. Best of luck to anyone holding any of the above today.
|
|
|
Post by rgs2001uk on Jun 15, 2020 22:51:30 GMT 7
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,233
Likes: 5,242
|
Post by chiangmai on Jun 16, 2020 1:24:24 GMT 7
There doesn't seem to be a ot of difference between the three, except price that is, I understand the need to tweak however (not twerk) )
|
|
|
Post by rgs2001uk on Jun 23, 2020 20:02:11 GMT 7
Totally unrelated to investing, but related to an earlier post, I received in the mail today a hard copy of the contracts for last weeks dealings, letter was dated 16 June, today is 23 June. Stockbroker had earlier sent me an e copy.
Posted for info only, eg, is international post reaching Thailnd, answer yes, its the third overseas letter I have received in the past week.
Be aware this is Bkk and not the boonies.
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,233
Likes: 5,242
|
Post by chiangmai on Jun 24, 2020 5:51:55 GMT 7
Totally unrelated to investing, but related to an earlier post, I received in the mail today a hard copy of the contracts for last weeks dealings, letter was dated 16 June, today is 23 June. Stockbroker had earlier sent me an e copy. Posted for info only, eg, is international post reaching Thailnd, answer yes, its the third overseas letter I have received in the past week. Be aware this is Bkk and not the boonies. I'm surprised rgs that those are not sent electronically, HL's are.
|
|
|
Post by rgs2001uk on Jun 24, 2020 20:26:50 GMT 7
Totally unrelated to investing, but related to an earlier post, I received in the mail today a hard copy of the contracts for last weeks dealings, letter was dated 16 June, today is 23 June. Stockbroker had earlier sent me an e copy. Posted for info only, eg, is international post reaching Thailnd, answer yes, its the third overseas letter I have received in the past week. Be aware this is Bkk and not the boonies. I'm surprised rgs that those are not sent electronically, HL's are. , please refer to previous post. Thats what I couldnt understand, they always have been sent electronically, this is the first time I have ever been sent a hard copy. Probably more jobsworth beaurcratic nonsense they have to comply with, and charge me for doing so.
|
|
chiangmai
Crazy Mango Extraordinaire
Posts: 6,233
Likes: 5,242
|
Post by chiangmai on Jun 25, 2020 16:22:17 GMT 7
I'm surprised rgs that those are not sent electronically, HL's are. , please refer to previous post. Thats what I couldnt understand, they always have been sent electronically, this is the first time I have ever been sent a hard copy. Probably more jobsworth beaurcratic nonsense they have to comply with, and charge me for doing so. Don't talk to me about jobsworth, I'm up to my neck in jobsworth with Lancaster Council Tax Dept. Because I didn't set foot in my UK flat this year they have disallowed my single person allowance and also the two months tax free period, one at either end of each tenancy, if the flat is vacant. Why did I not set foot in my flat you ask? Because Central Government said I couldn't evict my tenant who could not pay her rent, because of the coronavirus and because I was a nice guy and let her stay rent free until the crisis subsided. Oh yes, and because British Airways cancelled my flight and didn't refund the cost of the ticket and all long haul flights were effectively stopped. Lancaster Council says......tough sh*t, computer says no.
|
|
|
Post by rgs2001uk on Jun 25, 2020 21:04:04 GMT 7
, please refer to previous post. Thats what I couldnt understand, they always have been sent electronically, this is the first time I have ever been sent a hard copy. Probably more jobsworth beaurcratic nonsense they have to comply with, and charge me for doing so. Don't talk to me about jobsworth, I'm up to my neck in jobsworth with Lancaster Council Tax Dept. Because I didn't set foot in my UK flat this year they have disallowed my single person allowance and also the two months tax free period, one at either end of each tenancy, if the flat is vacant. Why did I not set foot in my flat you ask? Because Central Government said I couldn't evict my tenant who could not pay her rent, because of the coronavirus and because I was a nice guy and let her stay rent free until the crisis subsided. Oh yes, and because British Airways cancelled my flight and didn't refund the cost of the ticket and all long haul flights were effectively stopped. Lancaster Council says......tough sh*t, computer says no. , would have loved to have given you multiple likes, thought it was only me, welcome to my jobsworths and boxtickers nightmare. I fully accept, I have been too long in exile, my eyes have been opened to an alternative way of dealing with things, eg a bespoke or fast track service, or get back in line with the plebs, when in rome and all that, some call it bribery others call it baksheesh, others like me just accept it as a way of getting things done, irate from isaan can rant and rave about it all he likes until the buffalo come home, then he can take to some internet forum and bitch and moan about getting effed about by a jobsworth.
|
|
|
Post by rgs2001uk on Jul 3, 2020 21:12:34 GMT 7
|
|
|
Post by rgs2001uk on Jul 3, 2020 21:14:05 GMT 7
|
|