The Lemon Fool

Portfolio update, to hold myself to account, and to set investment goals for this year...

Current portfolio:

Fidelity Index World P - 36.8%
Vanguard LifeStrategy 60 A - 19.9%
L&G Global 100 I - 10.9%
BG China B - 9.5%
Monks - 6.2%
FCSS - 5.7%
BG Pacific B - 5.4%
CGT - 2.3%
Fundsmith Equity - 1.5%
Aegon Diversified Monthly - 1.5%
Cash - 0.1%

New thread, as made big changes mid January. Sold Capital Gearing 10% of pf value, and Fundsmith 5% pf value. Invested in Fidelity Index World 5%, BG China 2%, BG Pacific 2.5%, FCSS 1.5% and Monks 4%.

The reason for these changes is I've been investing 2+ years now, and performance to date has closely tracked Vanguard Lifestrategy 80. So much so, I am starting to wonder why I bother with an active approach! (I know it's debatable about Fundsmith - separate thread.)

New portfolio weighted average, 3 years annualised return - 10.7% (vs VWRL 9.2%) and 5 years - 17.3% (vs VWRL 14.5%). Will have as main measure relative performance, rather than absolute, with the intention of beating world market as a benchmark - VWRL by 2.4% p/a or 0.2% p/month.

Plan to post progress updates few times a year. One month obviously too short a time to assess, but China / Pacific was doing amazing until a week ago. They like a sell off in the Far East, with the pull back. With China set to overtake the US by 2028, over-weight in China/Asia Pac. Also China not in my core fund, Fidelity Index World, as bizarrely classed as emerging.

I'm in my late 40s on a career break. My investment period and drawdown uncertain as probably will use half the investment when we move house (depends on a few things), remaining half of funds do not expect to use as have work pensions etc. Not sure where I'd class myself on the risk scale, 6/10.

Your thoughts on the new portfolio welcome... Thanks, Adam

Adamski wrote:Current portfolio:
...
CGT - 2.3%
Fundsmith Equity - 1.5%
Aegon Diversified Monthly - 1.5%
...
Your thoughts on the new portfolio welcome... Thanks, Adam

I think these percentages are a bit low to make much difference to the overall return of your portfolio. Perhaps a 5% minimum would be better in some of the 'conviction' ITs. FCSS and Monks have done very well recently.

Tramrider

tramrider wrote:I think these percentages are a bit low to make much difference to the overall return of your portfolio. Perhaps a 5% minimum would be better in some of the 'conviction' ITs. FCSS and Monks have done very well recently.

Yes, makes sense, and will think about doing that.

I recall reading somewhere that a nominal contribution from Aegon monthly covered the charges in someone's pf, was that you Adamski?

W.

Wuffle wrote:I recall reading somewhere that a nominal contribution from Aegon monthly covered the charges in someone's pf, was that you Adamski?

Yes, that was me. I hold Aegon diversified monthly income to cover the platform custody charges. And work out the dividend which covers the charges.

My portfolio is running hot at the moment. Ytd return 5.9% v benchmark 3.4%. Because of outperformance by China / Pacific funds. May have to go risk off, soon if get another month like this last one, although do nothing if there is a pull back.

Adamski wrote:Portfolio update, to hold myself to account, and to set investment goals for this year...

Current portfolio:

Fidelity Index World P - 36.8%
Vanguard LifeStrategy 60 A - 19.9%
L&G Global 100 I - 10.9%
BG China B - 9.5%
Monks - 6.2%
FCSS - 5.7%
BG Pacific B - 5.4%
CGT - 2.3%
Fundsmith Equity - 1.5%
Aegon Diversified Monthly - 1.5%
Cash - 0.1%

New thread, as made big changes mid January. Sold Capital Gearing 10% of pf value, and Fundsmith 5% pf value. Invested in Fidelity Index World 5%, BG China 2%, BG Pacific 2.5%, FCSS 1.5% and Monks 4%.

Did you sell your previous Gold allocation to SLGN as well ?

Adamski wrote:Portfolio update, to hold myself to account, and to set investment goals for this year...

Current portfolio:

Fidelity Index World P - 36.8%
Vanguard LifeStrategy 60 A - 19.9%
L&G Global 100 I - 10.9%
BG China B - 9.5%
Monks - 6.2%
FCSS - 5.7%
BG Pacific B - 5.4%
CGT - 2.3%
Fundsmith Equity - 1.5%
Aegon Diversified Monthly - 1.5%
Cash - 0.1%

Your thoughts on the new portfolio welcome... Thanks, Adam

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Fidelity Index World P --- this is called a world tracker , but in fact isnt most of it big american stocks ?.

perhaps a more accurate global tracker would be split among trackers of say america , asia , japan , europe etc ..

jackdaww wrote:

Adamski wrote:Portfolio update, to hold myself to account, and to set investment goals for this year...

Current portfolio:

Fidelity Index World P - 36.8%
Vanguard LifeStrategy 60 A - 19.9%
L&G Global 100 I - 10.9%
BG China B - 9.5%
Monks - 6.2%
FCSS - 5.7%
BG Pacific B - 5.4%
CGT - 2.3%
Fundsmith Equity - 1.5%
Aegon Diversified Monthly - 1.5%
Cash - 0.1%

Your thoughts on the new portfolio welcome... Thanks, Adam

==================================

Fidelity Index World P --- this is called a world tracker , but in fact isnt most of it big american stocks ?.

perhaps a more accurate global tracker would be split among trackers of say america , asia , japan , europe etc ..

It is about 65% US as per most global trackers. The argument is that it reflects global equity weightings by capitalisation. I prefer more geographical diversification, but each to their own.

MartynC27 wrote:Did you sell your previous Gold allocation to SLGN as well ?

Yes I did, my timing for once was lucky. I'm thinking of getting back in, as a diversifier of the portfolio, and to buy at a lower price.

My feeling 11 feb was right i should have reduced risk, when had the chance. Instead was c. 25% china, Asia pacific mid month and taken big hit this week. Know only short term, but china tech holdings down c.12%, with sell off, which has knocked 3% off overall portfolio, plus market generally down couple percent, so back to ytd c. 1%. Know pull backs are normal, and volatility in china normal, and if you can't take the heat.. but annoying when doing well, to end up back at square one. So not making changes, but back to checking prices less often til go back up.

Quarter 1 review

Portfolio at 31.3.21:

Fidelity Index World 29%
VLS 60 17%
Monks 12%
L&G Global 100 10%
AVI Global 5%
BG Pacific 5%
Scottish Mortgage 5%
Fundsmith 2%
Aegon Diversified 1%

Return Q1 1.4% vs Benchmark VWRL 4% - shortfall 2.6%

Underperformance in month due to Tech/China correction end of Feb/March. Sold BG China and FCSS and bought SMT, AVI Global and more Monks.

I am quite hopeful of partial recovery in the growth funds in the next few weeks - but shall see. After recent changes I plan to do nothing for a while.

Even though gone from being up against benchmark, to down, bizarrely, I'm now more comfortable with a correction and with this new "global" portfolio and feel I have a theme I can stick with, and not check prices too often.

Is the remaining 14% in cash?

PinkDalek wrote:Is the remaining 14% in cash?

Good spot! I missed Vanguard World VWRL 14%. I moved 11% from Fidelity Index World and 3% from LifeStrategy 60. I should have proof read first!