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Thread: Asset Allocation for 2018

  1. #1

    Asset Allocation for 2018

    Having made some adjustments at the end of 2017 my overall portfolios (SIPP and ISA's combined) are allocated as follows:

    UK 30.1% Mostly small and mid caps
    Europe 9.3
    Asia Pacific 11.4%
    Emerging Mkts 11.5%
    Japan 1.4%
    Healthcare 4.3% (incl WCPT)
    REIT 6.0%
    Global Utilities 2.6%
    Infrastructure 1.0%
    Cash 22.4%

    I currently hold a mixture of It's (in my HL account) and OEICS (in my ii account)

    I am inclined to add a little to Japan and to Europe but not sure what to do with the rest of the cash. It seems to be too much to be holding in cash waiting for a downturn. I would probably want my cash holding to be no more than 15%.

    I have a 5 year time horizon.

    Any thoughts anyone ?

  2. #2
    These are observations, not criticism...

    - No significant US exposure
    - Quite an aggressive asset allocation (78% equities, or sectors that are not totally uncorrelated from equities)
    - 3 areas with holdings below 3% (indicating lack of conviction or room to top up)

    I can understand not wanting to add US exposure given valuations, but not everything will be expensive - possibly US small caps or a value fund like Dodge & Cox could work?

    UK exposure looks about right to me - I am also overweight the UK at the moment, not least because it's a useful hedge against sterling rising. I think there will be value opportunities in large caps too this year though.

    I've split my holdings into the categories suggested by Mr Helpful on another thread:

    Risk - 63% (57% equities 6% private equity)*
    Defensive 22% (Multi-asset, precious metals, property & absolute return)
    Cash 15%

    * Region split:
    UK 40%
    US 15%
    Asia 15%
    Japan 10%
    Europe 5%
    Latin America 5%
    Other 10%

    This year I'll be aiming to increase private equity and defensive holdings and maintaining or increasing cash.

  3. #3
    So far today I've bought iShares Japan ETF and business software company Intuit.

    The pound's been rising quite strongly against the dollar .. So my main concern this year is probably keeping dollar exposure under control

  4. #4
    I made a few changes during 2017 selling UK trusts and reinvesting into asia-pacific and global trusts. Don't expect to do anything this year other than remain 100% invested as usual. Like global, asia-pacific, and small caps. Hope Baillie Gifford have another good year!

  5. #5
    Would you please point me in the direction of the breakdown for:

    Risk - 63% (57% equities 6% private equity)*
    Defensive 22% (Multi-asset, precious metals, property & absolute return)
    Cash 15%

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