Global Bonds in Portfolio vs cash

[moneybagz]

Hi,

I hold two bond funds (total 25%) in my portfolio:

Vanguard Global Bond Index Fund GBP Hedged
Royal London Short Duration Global Index Linked M

The vanguard bond fund has not only protected my money during the crash but has given me a decent return. The RL fund, on the other hand has barely made 1% pa.

As I'm 15 years away from retirement, my strategy was to sell all my bonds during the next crash and go 90-95% equity. Now I'm at that point and struggling to make a decision. My thinking is to phase out of the bonds and buy into equities over 4 intervals, say 6mths, 12mths, 18mths, 24mths from now.

On the other hand, I could sell all my bonds now and earn 1.3% on a savings account and then purchase more equities during the same intervals.

Is there any upside left in these bond funds now or should I just revert to cash?

Many thanks

[colin]

You are trying to abrogate your investment decissions to others because like all of us you cannot see what the future will bring ,don't do that, don't expect others to tell you what to do, you are only trying to transfer responsibility to others because it frightens you, whatever decission you take will be the best one you could have made under the circumstances, with hindsight there will no doubt be many better decissions but there is no board for hind sight here.

[moneybagz]

I'm simply asking the question as I have very little knowledge of gilts/bonds.

[GoSeigen]

As I'm 15 years away from retirement, my strategy was to sell all my bonds during the next crash and go 90-95% equity. Now I'm at that point and struggling to make a decision. My thinking is to phase out of the bonds and buy into equities over 4 intervals, say 6mths, 12mths, 18mths, 24mths from now.

Here's my opinion: you wanted to sell the bonds in a crash. That was a good plan. Well the crash has come so the time to sell has come. You made a good plan and got lucky.

As for how much to sell, if I were you I'd sell now 40% of the total amount you'd have wanted to sell in a crash. Push those funds into more risky assets like shares. If the equity markets continue falling (which is very possible) wait until significantly cheaper and liquidate the next tranche of the bond fund, buy the shares cheaper. If markets recover I think you can steadily liquidate the bonds as you build up the share profits and buy the shares that are still cheap/on the dips.

Well done for having some sensible diversification. Now take advantage and don't look back.

GS

[jackdaww]

I'm simply asking the question as I have very little knowledge of gilts/bonds.

====== thats what these boards are good for ..

keep asking .

[moneybagz]

thanks for the advice, much appreciated