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ISA portfolio
Chris Banes
Posted: 21 March 2018 15:26:58(UTC)
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I'm currently doing a bit of a re-balancing of my ISA. I'm 29, and currently have a fairly adventurous attitude. I also have a separate SIPP which is slightly more cautious.

My current portfolio is the following:

BlackRock Throgmorton (12%)
Allianz Technology (10.5%)
Fundsmith Equity (8%)
TR Europe (8%)
iShares Core MSCI Japan IMI UCITS ETF (6%)
Pantheon Intl (4.5%)
Cash (50%)



With the cash, I'm thinking of adding:

More europe (5%)
More Global large-cap, maybe SMT (7%)
More Japan exposure (5%)
Global small-cap, currently thinking SLI Global Smaller (8%)
Asia Pacific ex-jp, currently thinking Veritas Asian (10%)
Emerging markets, currently thinking Templeton (10%)

I'm also starting to think that I have too much Allianz Tech, especially since there is bound to be crossover with some of the other funds.

I'd appreciate any comments or thoughts. Thanks
Chris Howland
Posted: 21 March 2018 16:59:02(UTC)
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I've just bought a 6% portfolio stake in SMT, funded through the sale of CMHY and IPE. Cash (9%) is waiting on the new ISA season. Like you, I'm thinking hard about where to invest it.

John Baron's last two IC articles have listed five areas he believes are worthy of consideration:

1 - UK smaller companies

2 - Japan generally

3 - Commercial property

4 - Commodities

5 - Emerging markets

I think the first two and maybe the last one are where I'm heading. Just depends on where the value sits in a months time...

Chris
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Mike L on 25/03/2018(UTC)
Jim S
Posted: 21 March 2018 18:23:08(UTC)
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You may want to consider some of these:

Europe: JEO or Jupiter European
Global: Lindsell Train Global equity to go with SMT and Fundsmith
Japan: Legg Mason Japan
AP: Baillie Gifford Asia or Hermes (or possibly FCSS and IGC if you want to focus on China or India)
EM: Hermes

You could trim ATT to get a biotech trust like IBT maybe, biotech has been relatively cheap recently

IEM might be worth a look

I would pop a bit of Burford in for around 1300-1350, maybe 2-3%, but that's just me :)
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Chris Banes on 23/03/2018(UTC)
King Lodos
Posted: 22 March 2018 04:56:41(UTC)
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I'd say if you limit yourself to 6 funds (maybe 3 main funds, and a few satellites) you will make sure you're not just collecting funds.

The fund industry wants us to think we need dozens .. If Fundsmith thought they could do any better with a Japan tracker, or Pantheon, they'd simply hold those themselves .. There's a cost to diversification – and the cost beyond a point is that you simply have an expensive market tracker (i.e. it's easier to find three great fund managers than 15 .. and I'm not sure I can find three).

Having a limit gets you in the habit of really considering what you're investing in, because it will always mean dropping something you probably also like
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mcminvest on 22/03/2018(UTC), Raj K on 22/03/2018(UTC), Tim D on 22/03/2018(UTC), kWIKSAVE on 22/03/2018(UTC), Guest on 25/03/2018(UTC)
Alan Selwood
Posted: 22 March 2018 12:07:00(UTC)
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SMT is currently on a small discount (2.73% according to Trustnet), so after the Facebook problem (also shared with Fundsmith and many other funds!), there may be value there, assuming that Facebook's position rights itself from the last week's dip. It may or may not!
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Bellabeck on 22/03/2018(UTC)
Robin
Posted: 22 March 2018 13:48:54(UTC)
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The Facebook thing has a bit of a whiff about it. On your ATT query, I until today had a holding in PCT. Not massive and not held for terribly long, but I am a little wary of some of the anti big tech noises, talk of increased regulation for example. I also have a fairly new position in SMT so have some exposure there. I today sold PCT and replaced with EWI to move away from big tech and pure tech, increase exposure to small companies. I recognise EWI is at a small premium but I am attempting to find a portfolio I'm happy not to mess around with. So yeah, I loosened up on tech. A little.
Tom Bards
Posted: 22 March 2018 13:58:09(UTC)
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Alan Selwood;59144 wrote:
SMT is currently on a small discount (2.73% according to Trustnet), so after the Facebook problem (also shared with Fundsmith and many other funds!), there may be value there, assuming that Facebook's position rights itself from the last week's dip. It may or may not!



Facebook only makes up about 2.5% of SMT which isn't that much. SMT always has the issue of being dragged down with the rest of the FTSE even though it barely has any direct UK exposure.
raybd
Posted: 23 March 2018 11:41:22(UTC)
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Count your SIPP and ISAs as one portfolio, plus any property and spouse/long term partner's holdings.
Sounds like you need to start some serious learning.
Think how you can follow your investments, and how to check tips/advisers.
Chris Banes
Posted: 23 March 2018 12:07:14(UTC)
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Wow, care to elaborate on where and what I need to 'serious[ly] learn'?

I personally think keeping my SIPP passive and lower risk (still roughly 7/10 on the adventurous scale) easier to maintain. My ISA is where I put my riskier and active choices.

I know exactly where to read tips and adviser research thanks. This thread wasn't created because I don't them where to look.

raybd;59210 wrote:
Count your SIPP and ISAs as one portfolio, plus any property and spouse/long term partner's holdings.
Sounds like you need to start some serious learning.
Think how you can follow your investments, and how to check tips/advisers.

Jim S
Posted: 23 March 2018 12:25:14(UTC)
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Chris Banes;59211 wrote:
Wow, care to elaborate on where and what I need to 'serious[ly] learn'?

I personally think keeping my SIPP passive and lower risk (still roughly 7/10 on the adventurous scale) easier to maintain. My ISA is where I put my riskier and active choices.

I know exactly where to read tips and adviser research thanks. This thread wasn't created because I don't them where to look.

raybd;59210 wrote:
Count your SIPP and ISAs as one portfolio, plus any property and spouse/long term partner's holdings.
Sounds like you need to start some serious learning.
Think how you can follow your investments, and how to check tips/advisers.



Well, FWIW I think you've already started your serious investment learning and are way ahead of most 29 year olds.
How much is in your ISA?
How much in your SIPP?
Eg, if your ISA is 10k, there's no point messing around with 20 funds, but if its 500k then more than 10 holdings would make sense.

raybd is right that you should think of your investments as a whole, not as seperate islands, in terms of managing your risk & also portfolio balance.

One thing to avoid is chopping and changing too frequently & racking up transaction costs. I review things quite a lot but try to only change around 20% in any year
Dennis .
Posted: 25 March 2018 09:20:23(UTC)
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Bear in mind that like all IFA's the folk on this forum have no more idea about the future than you do. Did anyone here forsee the Facebook scandal or the BP Gulf of Mexico disaster in 2010, or Tesco throwing a wobble etc etc? We all come from different backgrounds with a different view of risk so my advice is buy the FT every day and do your own research.

IncidentallyI have over £330k of my portfolio in Fundsmith and just watched the 2017 AGM video and paid close attention to his body language. Although this has been easily my best investment I am growing uneasy that this is becoming a cult following like Bernie Madoff, on the other hand Warren Buffett has a similar following so make your own decisions.
xcity
Posted: 25 March 2018 11:39:23(UTC)
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Dennis .;59351 wrote:
Did anyone here forsee the Facebook scandal or the BP Gulf of Mexico disaster in 2010, or Tesco throwing a wobble etc etc?

Actually, all 3 were predictable risks if you looked in the right place.

Facebook have been known to have issues with privacy and security management for a long time. Facebook 'fake news' has been an identified issue, and with the anti-Trump media frenzy it was likely something would be flushed out/exploited at some point.

BP. Almost ditto. Successful explorers, but a less careful attitude to risk management than some other majors. They did have a history. Precise details couldn't have been foreseen, and the actual transgressions were mostly by US companies. BP a useful fall guy. Interesting learning point about potential risks to non-US companies operating in the states.

Tesco. Very hard to have seen what was happening purely from looking at the numbers, though their margins were very high - they grew gradually. But, if you shopped there you would have noticed a gradual fall in competitiveness and increase in supermarkets attempt to mislead customers. And many stories from suppliers - about Tesco in particular - in trade press, and even in national press.

I didn't precisely foresee these incidents - but I've never signed up to Facebook, for precisely these reasons, always needed a risk premium to persuade me to take BP rather than Shell, and avoided Tesco as an investment (too expensive) and as a shopper (ditto, despite it being the most convenient for me; looking better now)
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