So I am currently thinking, what if there is a market crash, maybe accompanied by increased inflation, (and noting that I am generally a buy and long term hold investor, with an increased emphasis on income, but like to include some growth and plenty of diversity). The question is, - are there any of my IT holdings that I could or should rationalise, reduce, or sell to make my portfolio a bit more defensive, or to reduce its volatility. My current holdings are listed below, (apologies to Dod if I don't remember all their full names). They are listed in size of holding order within each category. My largest 4 holdings are in bold type.:
Global G&I:
JGGI - JP Morgan Global Grth & Inc
SAIN - Scottish American Global G&I
*HINT - Henderson Int Inc
Global Growth:
MNKS - Monks
SMT - Scottish Mortgage
*ATST - Alliance
*MWY - Mid Wynd
Global Multi-Asset:
MATE - JP Morgan Multi-Asset trust
PNL - Personal Assets
UK:
ASEI - Aberdeen Standard Equity Inc
DIG - Dundedin (correction - DUNEDIN)
LWDB - Law Debenture
USA/North America:
MCT - Middlefield Canadian Inc
USA - Baillie Gifford US Equity
BRNA - Blackrock North America
Europe:
JETI - JP Morgan European Inc
EAT - European Assets
BRGE - Blackrock greater Europe
Asia Pacific:
AAIF - Aberdeen Asian Inc
JAGI - JP Morgan Asian Growth & Inc
PHI - Pacific Horizons
Infrastructure:
EGL - Ecofin Global Utilities & Infrastructure
INPP - International Public Partners
Renewables:
SEIT - SDCL Energy Efficiency Trust
GRID - Gresham House Energy (Storage)
REIT's/Property Coys:
PHP - Primary Health Properties
RGL - Regional REIT
SLI - Standard Life Prop Inc
SUPR - Supermarket Inc
WHR - Warehouse REIT
Basic resources/miners/commodities:
POLY - Polymetal (Gold Miner)
BERI - Blackrock Energy resources Inc
BRWM - Blackrock World Mining
CYN - CQS Natural Resources Inc
Those marked with an asterix * are those that I consider could be ripe for rationalisation, - i.e. Alliance or Mid Wynd and HINT.
So I did my bit of "pickering"/fine-tuning on Monday:
I sold ATST (partly to reduce exposure to technology and particularly the FAANG's)
Trimmed 20% of my holding of SMT to reduce exposure to more volatile technology and growth. (I hold a larger slice of Monks)
Sold 40% of my holding of ASEI (partly to reduce exposure to major oil and Shell and BP)
Trimmed 20% of my holding of LWDB (partly to reduce exposure to major oil Shell & BP)
With the proceeds I topped up::
PNL, SAIN, DIG, RGL and a small amount to AAIF and MWY.
I felt DIG held better quality stocks than ASEI and was less volatile. PNL is defensive and holds some inflation protection in the form of US TIPS. SAIN a good balance between growth & income. RGL offsets some of the income lost through the reduction in ASEI and increases an alternative asset class. MWY was topped up as it was a smaller holding in what I see as a less volatile growth trust (and a different house to Baillie Gifford).
JGGI remains my largest holding.
I pondered, should I add BIPS or even NCYF., but decided no, as I don't need the income, or the downside risk if interest rates rise.