Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

New funds?
George Muir
Posted: 02 April 2018 17:42:39(UTC)
#1

Joined: 05/01/2012(UTC)
Posts: 30

Thanks: 3 times
Was thanked: 2 time(s) in 2 post(s)
We currently have investments with fundsmith and lindsell train uk equity,held for over 3 years,and have recently
invested in the new evenlode global income fund.I am slightly unsure of where to invest next,as if the markets do come off,which is definitely a possibility,holding trackers may not be a good idea,but I am unsure where to go next fund wise,as I could put the wife into a uk fund,and possibly a global tracker. Any help would be much appreciated.
1 user thanked George Muir for this post.
mcminvest on 05/04/2018(UTC)
King Lodos
Posted: 02 April 2018 18:00:26(UTC)
#2

Joined: 05/01/2016(UTC)
Posts: 3,042

Thanks: 720 times
Was thanked: 4759 time(s) in 1844 post(s)
As far as I know, there's no evidence active funds as a whole hold up any better in bear markets.

There's the scope for them to hold more cash, or move into defensive sectors, but those market calls are also why many underperform when markets are going up.

Index trackers are sort of equal parts obvious trades and contrarian trades (being that there's always a person on each side of every trade, and the tracker is just the sum of all the parts).


Having said that, my personal favourite fund for this kind of uncertainty is Lindsell Train Global .. The quality investing style (which Fundsmith also follows, but LT maybe epitomises) was developed by Warren Buffett and Charlie Munger for these kinds of markets.

I also quite like a Vanguard Emerging Markets tracker as a longer-term investment, as you've got a lot of things going for EM: cheaper valuations, better demographics, growth..
4 users thanked King Lodos for this post.
Tim D on 02/04/2018(UTC), kWIKSAVE on 03/04/2018(UTC), Powerful Pierre on 05/04/2018(UTC), mcminvest on 05/04/2018(UTC)
TJL
Posted: 02 April 2018 18:15:37(UTC)
#3

Joined: 14/03/2011(UTC)
Posts: 479

Thanks: 249 times
Was thanked: 374 time(s) in 193 post(s)
I would do a little bit of number crunching first, using the information available on the likes of Morningstar etc.(into a simple spreadsheet for example, unless your platform does it for you), to identify how much you have invested where, before making any decisions.
George Muir
Posted: 02 April 2018 20:28:18(UTC)
#4

Joined: 05/01/2012(UTC)
Posts: 30

Thanks: 3 times
Was thanked: 2 time(s) in 2 post(s)
The reason I didn't go into lindsell train global equity was because a few of the companies in there
were also in the uk equity fund which would have meant duplication of some companies,however,the fund
has done really well since then,with quality management.Scottish mortgage would be a possibility if
the price came off,as there could be volatility to come with this fund,I am also interested in smaller company
funds,these could struggle if the market comes off,two I like are std life smaller companies,and old mutual
smaller companies focus fund,and one of two others could be,cfpsdl uk buffettology,or the cfpsdl free spirit
fund,more expensive than others,delivering good results though.





1 user thanked George Muir for this post.
mcminvest on 05/04/2018(UTC)
King Lodos
Posted: 02 April 2018 20:49:35(UTC)
#5

Joined: 05/01/2016(UTC)
Posts: 3,042

Thanks: 720 times
Was thanked: 4759 time(s) in 1844 post(s)
I think the question is as much what you DON'T want exposure to, as what you do.

The more bases you cover, the more your portfolio becomes a tracker.

It's much easier to pick one good fund manager, or investing style .. If you've got five, you really need to pick five winners – otherwise a single loser drags your whole portfolio down .. If you don't want the Lindsell Train stocks at higher weightings, maybe you don't want the Lindsell Train stocks? .. I think it's very difficult to balance conviction and lack of conviction, because short of conviction, you really do wind up with very market-like performance (and then only if you do *everything* else right)
5 users thanked King Lodos for this post.
Tim D on 02/04/2018(UTC), Sara G on 03/04/2018(UTC), kWIKSAVE on 03/04/2018(UTC), Guest on 05/04/2018(UTC), mcminvest on 05/04/2018(UTC)
kWIKSAVE
Posted: 03 April 2018 08:47:12(UTC)
#6

Joined: 14/08/2013(UTC)
Posts: 435

Thanks: 133 times
Was thanked: 382 time(s) in 238 post(s)
I agree totally with King Lodos about having too many funds.

My SIPP worth c. £9K hs 5 and LT Global Equity the best performer over 2 years.

So I am going to funnel some of the others into this fund and for my 18/19 £3.6K go for Vodafone (even though dividend cover low) ending up 50/50 LTGE/Vodafone.

There's no rush to do 18/19 ISA; let's see what happens over the next 30 days.
Possibly monthly contributions of £1,000 into an emerging markets tracker as
KL suggests.

Then top up with Diageo/Glaxo perhaps.
3 users thanked kWIKSAVE for this post.
gillyann on 04/04/2018(UTC), Powerful Pierre on 05/04/2018(UTC), mcminvest on 05/04/2018(UTC)
+ Reply to discussion

Markets

Other markets