More fund suggestions

[Fluke]

Excluding a couple of small employer pensions my retirements savings breakdown this like this:

HYP:65%
Fundsmith: 6%
Smithson: 5.5%
Cash: 23.5%

I’ve been holding back the cash for some time as I it was going to be used to fund a house move but that’s now on hold so I’m looking to deploy some of it (about 60%) into 2 or 3 of funds/ITs which are primarily growth focussed with income as a secondary consideration. I want to minimise overlap with my HYP so nothing dominated by large uk equities. Sectors I feel comfortable with are Global equities large and medium, UK equities small and medium and possibly healthcare/biotech.

I feel really comfortable with the investing ethos as Fundsmith, the transparency and the fact that everything is explained in plain English. Were it not for the recent troubles at Woodford I might well have increased my holdings in those 2 70/30, but it might be prudent to spread the risk around a bit.

The income I’m getting from my HYP, later to be added to by the 2 small pensions, is enough to live on so the aim is really to protect and grow the cash with view to selling at some later point should a cash injection over and above my reserve, be required.

I have been following itsallaguess’s excellent posts on the IT board on how to use the AIC site and have got a few ideas, but I’m posting this here so as not to exclude suggestions of other fund types.

Finally, one other thing I have considered is using some of the money to increase my HYP holdings in Unilever, Diageo and possibly Compass, these haven’t qualified for top up for a long time on the grounds of yield. The first 2 of course feature in a number of growth funds not least Fundsmith.

I would welcome any suggestions.

[mc2fool]

An easy way of counter balancing your HYP would be the Vanguard FTSE Developed World ex-U.K. Equity Index Fund. It's a simple (and cheap) passive developed world tracker that omits the UK.

[tjh290633]

If you want 3 ITs, my choice would be Alliance, Foreign & Colonial and Witan. All have good returns with lowish yield.

TJH

[kempiejon]

An easy way of counter balancing your HYP would be the Vanguard FTSE Developed World ex-U.K. Equity Index Fund. It's a simple (and cheap) passive developed world tracker that omits the UK.

I too was going to suggest the global route, in my SIPP I made an exUK passive portfolio using a handful of vanguard ETFs to cover USA, Europe exUK, Emerging Markets, Developed Asia Pacific ex-Japan and Japan. I like the option mc2foll has offered though. I expect I shave a fraction of a percent off fees but with 0.14% it'll be small change.

[TahiPanasDua]

An easy way of counter balancing your HYP would be the Vanguard FTSE Developed World ex-U.K. Equity Index Fund. It's a simple (and cheap) passive developed world tracker that omits the UK.

I too was going to suggest the global route, in my SIPP I made an exUK passive portfolio using a handful of vanguard ETFs to cover USA, Europe exUK, Emerging Markets, Developed Asia Pacific ex-Japan and Japan. I like the option mc2foll has offered though. I expect I shave a fraction of a percent off fees but with 0.14% it'll be small change.

I would be tempted to follow your handful of vanguard ETFs option but not necessarily to reduce fees which, as you imply, is not a great amount. For lazy types like me it is a small price to pay for the convenience. I would be looking to reduce the 68% US content given the high rating of the US index. That said, in the very long term, a sizeable US investment would be a good move based on historical evidence. Also, if you currently have few American shares in your portfolio this fund is a good bet.

Almost nothing in life is simple.

TP2.

[Fluke]

Very interesting suggestions, I had 2 of your 3 on my list TJH, still gathering info.

Thanks all.