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Rory Barr
Posted: 17 February 2023 14:42:45(UTC)
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The January Update shows it to be 8.1%

As previously posted by smg8: https://www.assetmanagem...erly-report-q1-2023.pdf

A pretty impressive document IMHO

The more I read on other threads about dipping in and out of RCP/RIT etc and chopping and changing this and that within a PF, the more I'm drawn to these low cost multi-asset funds. Choose you risk tolerance, set up your regular investing, then play dead. The likelihood of consistently beating this approach within the same volatility and risk parameters using a DIY portfolio must be very low.
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5 users thanked Rory Barr for this post.
Andrew59 on 17/02/2023(UTC), Guest on 17/02/2023(UTC), Dexi on 18/02/2023(UTC), Guest on 19/02/2023(UTC), smg8 on 01/02/2024(UTC)
smg8
Posted: 17 February 2023 16:08:58(UTC)
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If someone is starting to go off the beaten track of "pure" passive exposure (i.e. a multi asset with human intervention) the Global Strategy range does look compelling - and as before it's far less "actively" managed than the AJ Bell ones. HSBC appear to have a target range within each asset class/region that they can tweak up and down as opposed to making wholesale sweeping changes like the AJ Bell ones. For example I don't think HSBC would ever be 18% in China or 40% in Emerging Markets like AJ Bell Growth.

I think this comes down to what someone wants from their investment. Do they want a more passive experience or do they really want an active fund in which the underlying investments are passive.

Global Strategy Adventurous has performed about the same as Vanguard Life Strategy 100. That's pretty impressive seeing it's been less volatile, and it's only 80-85% equity exposure vs 100% from Vanguard.

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Rory Barr on 17/02/2023(UTC)
allocator3844
Posted: 17 February 2023 18:17:52(UTC)
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Re A J Bell, I have never considered them before but having read this thread I am looking at including the Adventurous or Growth fund to my current allocation.

I am roughly split as follows :

Fixed :
CGT 20%
VG60 20%
HSBC GS Balanced 20%
HSBC American 20% (will not need this for 10 years +)

To be reallocated :
FID EM / BG AP (inc Japan) 15%
Cash 5%

I have been intending to reduce FID EM / BG AP (inc Japan) for some time now but guessed correctly that these funds would recover (partially) from the poor 21 / 22 years, and may carry on doing so of course.

Perhaps AJ Bell Adventurous or Growth at 20% may be an option to this latter 20% as it is a different split to the above fixed funds especially the 33% EM / AP Japan allocation (Morningstar).

For context I am 60, work 3 or 4 days a week, will probably retire in 2 years time / no dependents / live a simple and fruitful life on £20k pa / currently putting the remaining £15k pa of my current income into my SIPP. I have assumed a State pension of say £9 - 10k pa (+ inflation) from age 67.I want to get to a situation where I just forget about it.
(I have a separate SIPP for contributions not in the above calcs - I treat this as a bonus)

Any thoughts would be appreciated.
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Rory Barr on 17/02/2023(UTC)
Rory Barr
Posted: 17 February 2023 18:39:57(UTC)
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My thoughts are that you know your own situation better than anyone on here. That aside, I applaud the desire to get to a situation where you can just forget it.

Given your relatively defensive positioning with CGT, HSBC GS Balanced and LS60, you seem to be looking to AJB for the growth alongside HSBC American. Again, I applaud the recognition that growth is required throughout retirement. That's how I feel.

For me, the AJB funds look a little erratic for the ethos that I'm looking for (predictable returns), perhaps a bit overly-managed and opinionated. Almost they're trying to make it look a bargain "Look how much active management you get for a small fee!". They're as likely to be wrong as right. But going back to my first point, you know your situation best, and perhaps that's exactly what you're looking for.

Did you look at the other providers as shown in Monevator's table (posted in an earlier post on this thread)?

Also, how long have you held HSBC GS Balanced and what's been your experience please?
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allocator3844 on 17/02/2023(UTC), smg8 on 18/02/2023(UTC)
allocator3844
Posted: 17 February 2023 22:40:48(UTC)
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Rory Barr;258106 wrote:
My thoughts are that you know your own situation better than anyone on here. That aside, I applaud the desire to get to a situation where you can just forget it.

Given your relatively defensive positioning with CGT, HSBC GS Balanced and LS60, you seem to be looking to AJB for the growth alongside HSBC American. Again, I applaud the recognition that growth is required throughout retirement. That's how I feel.

For me, the AJB funds look a little erratic for the ethos that I'm looking for (predictable returns), perhaps a bit overly-managed and opinionated. Almost they're trying to make it look a bargain "Look how much active management you get for a small fee!". They're as likely to be wrong as right. But going back to my first point, you know your situation best, and perhaps that's exactly what you're looking for.

Did you look at the other providers as shown in Monevator's table (posted in an earlier post on this thread)?

Also, how long have you held HSBC GS Balanced and what's been your experience please?



HSBC American and a potential AJB Growth are for 10 - 15 years + .

Agree AJB have a very active participation, which is straying away from the passive Jack Bogle philosophy which I adhere to. So that is an issue.

I have looked at Fidelity / Blackrock / L & G but they seem to duplicate what I have already either UK bias VG or true global HSBC.

Experience with HSBC GS Balanced .. performance similar to VG60 but different under the bonnet which I am quite content with.


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smg8 on 18/02/2023(UTC)
Thrugelmir
Posted: 17 February 2023 23:08:46(UTC)
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Joined: 01/06/2012(UTC)
Posts: 5,316
allocator3844;258125 wrote:
.

Agree AJB have a very active participation, which is straying away from the passive Jack Bogle philosophy which I adhere to.


Jack Bogle is often misquoted. His tracker was based on an academic research paper on the S&P500. He left Vanguard the company he founded, disagreeing with the direction that was being taken. Marketing of style above substance. That was over 20 years ago I should add. Myths perpetuate.and grow on social media.
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smg8
Posted: 18 February 2023 10:10:51(UTC)
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allocator3844;258125 wrote:
Rory Barr;258106 wrote:
My thoughts are that you know your own situation better than anyone on here. That aside, I applaud the desire to get to a situation where you can just forget it.

Given your relatively defensive positioning with CGT, HSBC GS Balanced and LS60, you seem to be looking to AJB for the growth alongside HSBC American. Again, I applaud the recognition that growth is required throughout retirement. That's how I feel.

For me, the AJB funds look a little erratic for the ethos that I'm looking for (predictable returns), perhaps a bit overly-managed and opinionated. Almost they're trying to make it look a bargain "Look how much active management you get for a small fee!". They're as likely to be wrong as right. But going back to my first point, you know your situation best, and perhaps that's exactly what you're looking for.

Did you look at the other providers as shown in Monevator's table (posted in an earlier post on this thread)?

Also, how long have you held HSBC GS Balanced and what's been your experience please?



HSBC American and a potential AJB Growth are for 10 - 15 years + .

Agree AJB have a very active participation, which is straying away from the passive Jack Bogle philosophy which I adhere to. So that is an issue.

I have looked at Fidelity / Blackrock / L & G but they seem to duplicate what I have already either UK bias VG or true global HSBC.

Experience with HSBC GS Balanced .. performance similar to VG60 but different under the bonnet which I am quite content with.




I do think that the AJB options would be “different” compared to what you currently have, and compared to the Fidelity/MyMap/L&G range.

The growth one is interesting in the allocation, I can’t help feel 17% in china is a very big bet they’ve made. They’ll look like geniuses if they are right - and again they were very right with their allocations in 2022. Or idiots if they are wrong!

The adventurous one seems a bit more vanilla, still different to the others above but not as big a bet on a single region. Probably the pick of the bunch in terms of different but not too wild.

If you want an active approach then it appears to fit your portfolio which would seem pretty buy and forget with those 5 * 20% allocations in my opinion.


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Rory Barr
Posted: 18 February 2023 15:24:45(UTC)
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smg8;258160 wrote:

I do think that the AJB options would be “different” compared to what you currently have, and compared to the Fidelity/MyMap/L&G range.

The growth one is interesting in the allocation, I can’t help feel 17% in china is a very big bet they’ve made. They’ll look like geniuses if they are right - and again they were very right with their allocations in 2022. Or idiots if they are wrong!

The adventurous one seems a bit more vanilla, still different to the others above but not as big a bet on a single region. Probably the pick of the bunch in terms of different but not too wild.

If you want an active approach then it appears to fit your portfolio which would seem pretty buy and forget with those 5 * 20% allocations in my opinion.


I'm getting slightly confused here. Firstly, I think we've veered away from using the actual fund names at AJB. There are 5 funds in their "Growth" category, ranging from "Cautious" through to "Global Growth" as you move up the risk spectrum. I suspect the one mentioned in this thread as being "Growth" is the one correctly named "Global Growth".

If so, its Monthly Factsheet shows its exposure to China Equity as 5.48%: https://www.ajbell.co.uk...al_Growth_factsheet.pdf

I can't see any funds in the "Growth" range approaching anything like 17%: https://www.ajbell.co.uk...ment-ideas/ajbell-funds

Are we looking at different funds?
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smg8
Posted: 18 February 2023 16:12:13(UTC)
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Rory Barr;258188 wrote:

If so, its Monthly Factsheet shows its exposure to China Equity as 5.48%: https://www.ajbell.co.uk...al_Growth_factsheet.pdf

I can't see any funds in the "Growth" range approaching anything like 17%: https://www.ajbell.co.uk...ment-ideas/ajbell-funds

Are we looking at different funds?


Sorry yes I’m referring to global growth.

Their fact sheet is showing a china specific etf at 5.48%, however there is a 33% holding in emerging markets ETFs which themselves hold big China allocations (30% and 40%).

Morningstar is showing china as an overall 17% allocation on a look through basis. Which is punchy!
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Rory Barr
Posted: 18 February 2023 17:30:39(UTC)
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smg8;258190 wrote:
Rory Barr;258188 wrote:

If so, its Monthly Factsheet shows its exposure to China Equity as 5.48%: https://www.ajbell.co.uk...al_Growth_factsheet.pdf

I can't see any funds in the "Growth" range approaching anything like 17%: https://www.ajbell.co.uk...ment-ideas/ajbell-funds

Are we looking at different funds?


Sorry yes I’m referring to global growth.

Their fact sheet is showing a china specific etf at 5.48%, however there is a 33% holding in emerging markets ETFs which themselves hold big China allocations (30% and 40%).

Morningstar is showing china as an overall 17% allocation on a look through basis. Which is punchy!


Possibly so (the 17%) but I wasn't just reading the China ETF value, I was going off the data in bottom right hand corner of Page 1 of the factsheet. Even when I look at the other ETFs that you'd expect to have exposure to China, I don't get to 17%.

I've looked at Morningstar and can see the 17.69% so I guess it's correct. I'm surprised AJB's governance processes haven't picked up on that and dialled it down. I do question whether it's correct. But then again, Ruffer bought BTC!
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