Wondering aloud - IT top up process
Posted: June 28th, 2021, 4:25 pm
I have noticed a lot of commentary on how many investors on these boards are edging more towards a basket of ITs to augment their portfolios of individual stocks to gain diversification, reduce risk, and above all simplify their portfolio management. I am among these, and ITs now represent between a quarter and a third of my portfolio.
A lot of my own selection of ITs is informed as a backdrop by the sterling work done by Luniversal on the B7 & B8, which were selected over a decade ago, and the performance data analysed/backdated to the beginning of the century.
Two separate strands to this thought exercise:
- Is anyone up to the challenge of thinking through and proposing a new basket(s) for the new decade?
- Does anyone have any thoughts on what a 'portfolio top up algorithm' should look like?
I think an awful lot of the solidity of the "HYP" process comes from the painstaking work undertaken and recorded over a long time by TJH, taking into account portfolio capital weight, share of income and cost.
For a collection of ITs, there are other factors that would influence such a decision - discount/premium to NAV, maybe years of reserve etc. Any thoughts?
A lot of my own selection of ITs is informed as a backdrop by the sterling work done by Luniversal on the B7 & B8, which were selected over a decade ago, and the performance data analysed/backdated to the beginning of the century.
Two separate strands to this thought exercise:
- Is anyone up to the challenge of thinking through and proposing a new basket(s) for the new decade?
- Does anyone have any thoughts on what a 'portfolio top up algorithm' should look like?
I think an awful lot of the solidity of the "HYP" process comes from the painstaking work undertaken and recorded over a long time by TJH, taking into account portfolio capital weight, share of income and cost.
For a collection of ITs, there are other factors that would influence such a decision - discount/premium to NAV, maybe years of reserve etc. Any thoughts?