Money To The Masses http://moneytothemasses.com Putting you in control Sun, 29 May 2016 07:39:17 +0000 en-GB hourly 1 Best of the Sunday papers’ MONEY sections http://moneytothemasses.com/news/best-sunday-papers-money-sections http://moneytothemasses.com/news/best-sunday-papers-money-sections#comments Sun, 29 May 2016 05:30:48 +0000 http://moneytothemasses.com/?p=16650 29th May 2016 Sunday Express Insurers could charge YOU hundreds for taking your pet to the ‘WRONG’ vet How long does it take for workers to earn their first £1million? Millions of young workers 'should take more risk with pensions' to save for retirement The Telegraph 'Why am I being charged triple on my home...

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29th May 2016

Sunday Express

Insurers could charge YOU hundreds for taking your pet to the ‘WRONG’ vet

How long does it take for workers to earn their first £1million?

Millions of young workers 'should take more risk with pensions' to save for retirement

The Telegraph

'Why am I being charged triple on my home insurance for being a loyal customer?'

'I'm 22 and will save £30,000 over the next two years - what should I do with it?'

How families are coping with soaring care home price rises

The Sunday Times (subscription)

Take note: the future of money is plastic

Probate seems to be the hardest word

Personal Account: Five go on an investment adventure

Mail on Sunday

Revealed: 12 jobs that have seen the biggest pay increases this year - and marketing managers see pay rocket 37%

TalkTalk customer scammed out of more than £3k after fraudsters target her with compensation overpayment trick

I booked a discounted Florida villa to take my grandkids to Disney but Thomas Cook charged us £984 in under-occupancy fees

The Observer

Expensive and worthless: the whole of life insurance plans sold to millions

When sky-high repair bills can make right to buy the wrong choice

Student loans: the next big mis-selling scandal?

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Best of the Sunday papers’ PROPERTY sections http://moneytothemasses.com/news/best-of-the-sunday-papers-property-sections http://moneytothemasses.com/news/best-of-the-sunday-papers-property-sections#comments Sun, 29 May 2016 05:15:36 +0000 http://moneytothemasses.com/?p=16656 29th May 2016 Sunday Express Rental prices SOARING across the UK - but not in London Neighbours at WAR: Housing crisis sees disputes rocket as frustrated residents on the edge Boost for first-time buyers amid dramatic mortgage rate drop The Telegraph Undeterred: buy-to-let investors adopt new strategies I lost £137,000 in a conveyancing scam but...

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29th May 2016

Sunday Express

Rental prices SOARING across the UK - but not in London

Neighbours at WAR: Housing crisis sees disputes rocket as frustrated residents on the edge

Boost for first-time buyers amid dramatic mortgage rate drop

The Telegraph

Undeterred: buy-to-let investors adopt new strategies

I lost £137,000 in a conveyancing scam but my bank's fraud team had gone home

Holiday cottage ‘visitor’ was fake

Sunday Times (subscription)

Going places: Deal

Who’s lived in a house like this?

Buy the house behind the brand

Mail on Sunday

A million more grown-up children set to move in with their parents in the next decade

The 10 hottest properties: Britain's most-viewed homes for sale revealed

What the average UK rent of £764 a month will get you around the country

The Observer

Homes in converted schools – in pictures

Let’s move to Westerham, West Malling and the West Kent Downs: aim high

This former station gatehouse is just the ticket – in pictures

 

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The sectors with the best value opportunities & the funds to buy http://moneytothemasses.com/8020-articles/the-sectors-with-the-best-value-opportunities-the-funds-to-buy http://moneytothemasses.com/8020-articles/the-sectors-with-the-best-value-opportunities-the-funds-to-buy#comments Thu, 26 May 2016 13:16:22 +0000 http://moneytothemasses.com/?p=22243 Last week The Sunday Times asked for my opinion on the sectors with the best value opportunities at the moment and the best funds to give exposure to them. If you have a subscription to the Sunday Times here is a link so you can view the full article The reasons to love a stock that...

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Last week The Sunday Times asked for my opinion on the sectors with the best value opportunities at the moment and the best funds to give exposure to them. If you have a subscription to the Sunday Times here is a link so you can view the full article The reasons to love a stock that has fallen out of favour.

However, below I provide my full commentary, analysis and fund suggestions exclusively for 80-20 Investor members.

The sectors offering the best value opportunities

With the market still down more than 10% from last year’s high a number of sectors now look cheaper on a price to earnings (p/e) basis and will have shown up on value investors' radars. But value investing is not easy. The skill lies in trying to differentiate between something that is cheap in the short term for a reason, known as a ‘value trap’, and something which offers long term value.

Since the Autumn of 2014 value investing has lagged a growth style of investing but that's starting to change in recent months. In fact there are now some sectors now looking attractive from a value perspective.

Banking

This unloved sector is now offering value having taken a battering since the credit crisis. Since 2008 the sector has shrunk balance sheets and there's been some much needed market consolidation, although maybe not enough. The sector is offering some attractive p/e measures as well as yields with some banks beginning to pay decent dividends.

Having said that the sector is not without its headwinds. A world of low (or even negative) interest rates puts pressure on banks' margins, while some banks are having to postpone dividends (RBS) or even cut dividends. Also anyone holding bank stocks earlier this year would have been uncomfortable when concerns over another banking crisis caused markets to wobble. Like all value plays it’s about stock selection.

Those looking to gain exposure to this sector should look at Majedie UK Income (a regular in the 80-20 Investor Best of the Best Selection) which has around a 14% weighting to the banking sector including over a 5% exposure to Lloyds banking Group.

Oil

Another out of favour sector is the oil industry. The plummeting price of oil has had a negative impact not just on oil companies but equities generally. Yet while the shares of oil companies have suffered a number of analysts have now called a bottom to the oil price.

With capital expenditure being cut within the industry the hope is that this should start to impact production levels, reducing the oversupply that's hindered the sector. For those looking to start dipping their toe back into the market then buy a fund with a strategic exposure to the sector such as Fidelity Special Situations run by star manager Alex Wright.

Alex Wright has an excellent track record of finding value for investors and is a proven stock picker. His fund has around 10% exposure to oil companies.

Housebuilders

Housebuilders’ shares have largely underperformed the wider market this year and on a pure p/e ratio of around 8.5 they offer value not seen since 2011. The sector offers attractive yields (between 5% and 6%) and based on the p/e ratio alone offers greater value vs the overall market (FTSE 100 has a p/e ratio of around 17).

Yet this sector is a perfect example of how 'value' can be subjective. On other price measures such as the cyclically adjusted p/e (or CAPE) which smooths out the p/e ratio by looking at the earnings over 10 years, housebuilders are looking expensive versus history.

In fact some analysts are claiming the sector has the hallmarks of a value trap with future earnings coming under pressure from cost pressures and a house price correction. Throw in the likely fall in demand from buy-to-let landlords (after recent stamp duty and tax relief changes) and foreign investors (if there is a Brexit next month) then it is no surprise that there’s been some profit taking among investors, which is why the sector has now hit value investors screens.

If you want to gain exposure to the sector it’s not easy. The problem with property funds is that they are focussed on commercial property with limited exposure to the retail market. One way to get some exposure is through a broad fund - look at UK all companies funds with a mid cap focus. The shares of a number of house builders are in FTSE 250. Schroder UK Mid 250 has Bovis Homes and Redrow as two of it’s top 5 holdings totalling over 10% of the fund’s assets.

Other sectors

I also looked at a number of other sectors such as supermarkets and energy but remain unconvinced that the value is there. Supermarkets face headwinds from competition from heavy discount stores (Aldi etc) while energy stocks are prone to a macro based correction despite a recent bounce.

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MTTM Podcast 87: Which emotion is driving the stock market, Mortgage calculator sham & The fund charge ruse http://moneytothemasses.com/news/podcast/mttm-podcast-87-which-emotion-is-driving-the-stock-market-mortgage-calculator-sham-the-fund-charge-ruse http://moneytothemasses.com/news/podcast/mttm-podcast-87-which-emotion-is-driving-the-stock-market-mortgage-calculator-sham-the-fund-charge-ruse#comments Mon, 23 May 2016 08:32:40 +0000 http://moneytothemasses.com/?p=22186 Listen to Episode 87 Click on the media player below to listen to Episode 87 of the MoneytotheMasses.com podcast. You can listen to other episodes by clicking on 'More Episodes'. Subscribe to the podcast You can also subscribe to the show via iTunes   Show transcript coming soon...

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Listen to Episode 87

Click on the media player below to listen to Episode 87 of the MoneytotheMasses.com podcast. You can listen to other episodes by clicking on 'More Episodes'.

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Show transcript coming soon...

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Damien’s Portfolio – Latest fund switches http://moneytothemasses.com/damiens-portfolio/damiens-portfolio-latest-fund-switches http://moneytothemasses.com/damiens-portfolio/damiens-portfolio-latest-fund-switches#comments Tue, 17 May 2016 23:20:31 +0000 http://moneytothemasses.com/?p=22169 Background Back in March 2015 I decided to invest £50,000 of my own money using 80-20 Investor. The purpose was two-fold, firstly to show how you can use 80-20 Investor to invest and outperform the market with only a few minutes effort every now and then. Secondly, no other investment commentator, journalist or research provider...

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Background

Back in March 2015 I decided to invest £50,000 of my own money using 80-20 Investor. The purpose was two-fold, firstly to show how you can use 80-20 Investor to invest and outperform the market with only a few minutes effort every now and then. Secondly, no other investment commentator, journalist or research provider invests their own money for fear of failing. This is a sorry state of affairs and is precisely why I committed to openly running my own portfolio for 80-20 Investor members to see.

Since then I have periodically changed my portfolio using the fund suggestions provided by the 80-20 Investor algorithm and associated research. I always disclose the changes at the time they are made.

My portfolio fund review

Last week I produced a lengthy analysis of how my portfolio is outperforming the market and 90% of funds managers.

My portfolio currently looks like this:

Fund % allocation
Fundsmith Equity Fund 20.27%
Fidelity Global Dividend 8.93%
Aberdeen Property Trust 4.82%
Newton UK Income 7.61%
Legg Mason Japan Equity 7.61%
GLG Continental European Growth 10.17%
Jupiter Absolute Return 6.78%
Troy Trojan 5.06%
Threadneedle Global Bond 8.59%
Vanguard Lifestrategy 20% Equity 20.16%

 

At the the end of last week's analysis I mentioned that a number of the above funds remain in the Best of the Best shortlist and that my portfolio has started May very well.

In light of both of these facts I do not need to make any wholesale changes. Having said that I've decided to make a couple of minor tweaks. Of the funds currently in my portfolio the following remain in the Best of the Best Selection and so will be left alone:

  • Fundsmith Equity Fund
  • Legg Mason Japan Equity
  • Threadneedle Global Bond
  • Vanguard Lifestrategy 20% Equity

Interestingly the Fidelity Global Enhanced Income fund is in this month's Best of the Best Selection. If you look at the chart below which shows the performance of the fund versus the Fidelity Global Dividend fund (which is in my £50k portfolio) you will see they are essentially the same fund. So therefore I will keep the Fidelity Global Dividend fund in my portfolio for now.

Comparison of Fidelity funds

Of the other funds the following remain in the shortlists of Best funds in their Sectors:

  • Jupiter Absolute Return
  • Troy Trojan

For now I am happy to leave these funds in the portfolio as protection against a market crash but I will be reviewing them again at the start of next month when the new Best of the Best Selection is published.

Fund switches

That leaves three funds to change:

  1. Aberdeen Property Trust
  2. GLG Continental European Growth
  3. Newton UK Income

Switch 1

The Aberdeen Property Trust was originally included in my portfolio as a diversifier. As it invests in actual buildings its returns are less volatile and uncorrelated to equities and bonds. The fund has served its purpose in that respect, however, it has not materially added to the portfolio's performance and the outlook for commercial property is less favourable than it was.

Therefore I am switching totally out of that fund and into the Barclays - Sterling Bond (ISIN GB00B72Y6K08) which is in this month's Best of the Best Selection. This is a strategic bond fund so while low risk it is slightly higher risk than a standard corporate bond fund, which is reflected in its slightly higher 'Max weekly fall figure in the last 6 months' in the data tables.

Switch 2

Both the GLG Continental European Growth fund and the Newton UK Income fund have dropped out of the current 80-20 Investor shortlists. Interestingly over recent months the algorithm has been reducing its direct exposure to both UK equities and European equities. At certain points exposure to either one has been removed entirely. This is not surprising given the uncertainty surrounding the UK EU Referendum next month.

As such I plan to switch out of both funds and split the proceeds between the existing Fidelity Global Dividend fund and the higher risk First State Global Listed Infrastructure fund (ISIN GB00B24HJC53). The reasons for doing so are:

  • both funds are global funds with a broad geographical exposure
  • the latter features in the Best of the Best Selection
  • it will maintain my portfolio's overall risk level
  • I also identified the First State Global Listed Infrastructure as one of the Global funds to weather a ‘Brexit’ tantrum.

 

My new portfolio

My new portfolio now looks like this is:

Fund % allocation
Fundsmith Equity Fund 20.27%
Fidelity Global Dividend 13.36%
Barclays - Sterling Bond 4.82%
Vanguard Lifestrategy 20% Equity 20.16%
Legg Mason Japan Equity 7.61%
First State - Global Listed Infrastructure 13.35%
Jupiter Absolute Return 6.78%
Troy Trojan 5.06%
Threadneedle Global Bond 8.59%
TOTAL 100%

This gives an asset allocation of approximately (numbers in brackets represent the previous allocation):

  • Global fixed interest - 20% (20%)
  • US equities - 26% (17%)
  • European equities - 8% (16%)
  • UK equities - 9% (15%)
  • Japanese equities - 9% (9%)
  • Other international equities - 7% (7%)
  • Cash - 5% (2%)
  • Property - 0% (4%)
  • UK Gilts - 3% (2%)
  • UK Fixed Interest 4% (0%)
  • Alternative assets/strategies - 9% (8%)

Interestingly my allocation is now different from the current allocation of the 80-20 Portfolio (Best of the Best Selection), although not a million miles away from it. The biggest difference is that I am prepared to take more risk with my portfolio and so have an equity allocation of 60%, which is 10-20% higher than the Best of the Best Selection. Nearly all of this extra equity exposure in my portfolio is in the US with some in Europe. However, I'll likely bring my portfolio's asset allocation more in line with that of the 80-20 Investor Best of the Best Selection at the start of next month.

The ISIN codes for the funds in my portfolio are as below:

Name ISIN Code
Barclays - Sterling Bond GB00B72Y6K08
Fidelity - Global Dividend GB00B7FQHJ97
Fundsmith - Equity GB00B4LPDJ14
Jupiter - Absolute Return GB00B5129B32
Legg Mason - IF Japan Equity GB0033507467
First State - Global Listed Infrastructure GB00B24HJC53
Vanguard - LifeStrategy 20% Equity GB00B4NXY349
Threadneedle - Global Bond GB0001533685
Troy Asset Management Ltd - Trojan GB0034243732
The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy.
Neither MoneytotheMasses.com/80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.
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Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com/80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
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MTTM Podcast 86: Frequently Asked Questions on Interest Rates, Pensions and Investments http://moneytothemasses.com/news/podcast/mttm-podcast-86-frequently-asked-questions-on-interest-rates-pensions-and-investments http://moneytothemasses.com/news/podcast/mttm-podcast-86-frequently-asked-questions-on-interest-rates-pensions-and-investments#comments Mon, 16 May 2016 09:43:32 +0000 http://moneytothemasses.com/?p=22162 Listen to Episode 86 Click on the media player below to listen to Episode 86 of the MoneytotheMasses.com podcast. You can listen to other episodes by clicking on 'More Episodes'. Subscribe to the podcast You can also subscribe to the show via iTunes   Show transcript coming soon...

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Listen to Episode 86

Click on the media player below to listen to Episode 86 of the MoneytotheMasses.com podcast. You can listen to other episodes by clicking on 'More Episodes'.

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Show transcript coming soon...

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Damien’s Portfolio – STILL outperforming 90% of fund managers & the market http://moneytothemasses.com/damiens-portfolio/damiens-portfolio-still-outperforming-90-of-fund-managers-the-market http://moneytothemasses.com/damiens-portfolio/damiens-portfolio-still-outperforming-90-of-fund-managers-the-market#comments Thu, 12 May 2016 13:27:29 +0000 http://moneytothemasses.com/?p=22147 Back in March 2015 I decided to invest £50,000 of my own money using 80-20 Investor. The purpose was two-fold, firstly to show how you can use 80-20 Investor to invest and outperform the market with only a few minutes effort every now and then. Secondly, no other investment commentator, journalist or research provider invests...

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Back in March 2015 I decided to invest £50,000 of my own money using 80-20 Investor. The purpose was two-fold, firstly to show how you can use 80-20 Investor to invest and outperform the market with only a few minutes effort every now and then. Secondly, no other investment commentator, journalist or research provider invests their own money for fear of failing. This is a sorry state of affairs and is precisely why I committed to openly running my own portfolio for 80-20 Investor members to see.

Since then I have periodically changed my portfolio using the fund suggestions provided by the 80-20 Investor algorithm and associated research. I always disclose the changes at the time they are made.

My portfolio has performed brilliantly while not taking excessive risks, as currently only around 60% of the portfolio is invested in equities. Since I started the challenge I have outperformed the market, passive portfolios and 90% of managed funds. I have produced a profit despite the various crises we have experienced including a Greek crisis, a Chinese economic slowdown as well as a commodity crisis.

The table below shows that my portfolio has performed brilliantly since the challenge started in March 2015:

Name Total Return %
50k challenge (my portfolio) +1.5%
Passive Vanguard benchmark -1%
Average fund manager -2.9%
FTSE 100 -6.9%

 

Potential portfolio changes

The chart below (click to enlarge) shows how each of the funds in my portfolio has performed since the last fund switch (two months ago). As you can see the reintroduction of Japanese equities has been a particularly profitable move. Interestingly a number of the funds in my portfolio remain in the Best of the Best Selection including Fundsmith Equity, Threadneedle Global Bond, Vanguard Lifestrategy 20% Equity, Legg Mason Japan Equity.

Funds since switch

My current portfolio looks like this is:

Fund % allocation
Fundsmith Equity Fund 20.27%
Fidelity Global Dividend 8.93%
Aberdeen Property Trust 4.82%
Newton UK Income 7.61%
Legg Mason Japan Equity 7.61%
GLG Continental European Growth 10.17%
Jupiter Absolute Return 6.78%
Troy Trojan 5.06%
Threadneedle Global Bond 8.59%
Vanguard Lifestrategy 20% Equity 20.16%

 

This gives an asset allocation of approximately:

  • Global fixed interest - 20%
  • US equities - 17%
  • European equities - 16%
  • UK equities - 15%
  • Japanese equities - 9%
  • Other international equities - 7%
  • Cash - 2%
  • Property - 4%
  • UK Gilts - 2%
  • Alternative assets/strategies - 8%

The ISIN codes for the funds in my portfolio are as below:

Name ISIN Code
Aberdeen - Property Trust GB00B036Z329
Fidelity - Global Dividend GB00B7FQHJ97
Fundsmith - Equity GB00B4LPDJ14
Jupiter - Absolute Return GB00B5129B32
Legg Mason - IF Japan Equity GB0033507467
Man GLG - Continental European Growth GB00B0119370
Newton - UK Income GB0006779218
Threadneedle - Global Bond GB0001533685
Troy Asset Management Ltd - Trojan GB0034243732
Vanguard - LifeStrategy 20% Equity GB00B4NXY349

 

Given that a number of funds remain in the Best of the Best shortlist I certainly don't need to make wholesale changes to my portfolio. Also if you look at the performance of my £50k portfolio (green line) since the start of this month (May) versus the other benchmarks it has been quite remarkable. You can click to enlarge the image.

50k portfolio outperformance

 

In light of both of these facts I have not made any knee-jerk changes. Some may say 'if it's not broke don't try and fix it'. However, I am likely to review a number of the funds in the coming days and make a couple of minor tweaks in line with the process behind 80-20 Investor.

 

 

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MTTM Podcast 85: What is salary sacrifice?, Insure your holiday money against a Brexit & a neat estate agent comparison tool http://moneytothemasses.com/news/podcast/mttm-podcast-85-what-is-salary-sacrifice-insure-your-holiday-money-against-a-brexit-a-neat-estate-agent-comparison-tool http://moneytothemasses.com/news/podcast/mttm-podcast-85-what-is-salary-sacrifice-insure-your-holiday-money-against-a-brexit-a-neat-estate-agent-comparison-tool#comments Mon, 09 May 2016 11:29:46 +0000 http://moneytothemasses.com/?p=22140 Listen to Episode 85 Click on the media player below to listen to Episode 85 of the MoneytotheMasses.com podcast. You can listen to other episodes by clicking on 'More Episodes'. Subscribe to the podcast You can also subscribe to the show via iTunes   Show transcript coming soon...

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Listen to Episode 85

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80-20 Investor Best of the Best Selection – May 2016 Update http://moneytothemasses.com/8020-articles/80-20-investor-best-of-the-best-selection-may-2016-update http://moneytothemasses.com/8020-articles/80-20-investor-best-of-the-best-selection-may-2016-update#comments Sat, 07 May 2016 05:47:53 +0000 http://moneytothemasses.com/?p=22117 Commentary This month's 80-20 Investor Best of the Best Selection continues to reduce its exposure to risk, increasing its bond/fixed interest exposure at the expense of equities. In fact global bonds still account for the largest component of the portfolio and its exposure has increased  further this month. Although the portfolio now has a very low direct exposure to...

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Commentary

This month's 80-20 Investor Best of the Best Selection continues to reduce its exposure to risk, increasing its bond/fixed interest exposure at the expense of equities. In fact global bonds still account for the largest component of the portfolio and its exposure has increased  further this month. Although the portfolio now has a very low direct exposure to equities the 'alternatives' listed will include exposure to equities but via derivatives etc.

The breakdown of the portfolio's equity exposure has also changed. Exposure to UK equities has crept back in, albeit limited. US equities had been the main focus of the 80-20 Investor equity exposure but this has been dramatically reduced. This is interesting in light of the US market recently coming within a whisker of its all time highs. Perhaps this is a sign that markets have topped over there? The key equity theme within the portfolio is diversification with Asian equities making a reappearance and no one geographical location being overly dominant. What is surprising is that there is now no exposure to European equities within the portfolio which is the first time this has happened. Perhaps this is reflective of the market nervousness surrounding the impending EU referendum in the UK.

At the foot of this article you can see how the 80-20 Investor Portfolio has continued to outperform the professional fund managers as well as the market.

A total of 14 funds from April's 30 funds make it into May's selection. Below I list this month's selection in full with the 14 funds that regained their place in black while the new additions are in green.

Just as last time, I have included the full list sorted alphabetically by name and then by risk category.

May's Best of the Best Selection - (A-Z by fund name)

(funds unchanged from last month are in black while new additions are in green)

 

Fund name Sector ISIN Code Risk level
Aberdeen - European High Yield Bond  Sterling High Yield GB00B5968F40 Low risk
AXA - Framlington Japan Japan GB0003500179 High risk
AXA - Sterling Strategic Bond  Sterling Strategic Bond GB00B0LLCW73 Low risk
Baillie Gifford - Emerging Markets Bond Global Emerging Market Bond GB00B39RMP13 Medium risk
Barclays - Sterling Bond  Sterling Strategic Bond GB00B72Y6K08 Low risk
BlackRock - NURS II Consensus 35  Mixed Investment 0%-35% Shares GB00B7W6H253 Medium risk
CF - Prudential Dynamic Focused 0-30 Portfolio Mixed Investment 0%-35% Shares GB00B5BNX690 Low risk
CF Canlife - North American  North America GB00B73N3278 High risk
Fidelity - Asia Pacific Opportunities  Asia Pacific Excluding Japan GB00BQ1SWL90 High risk
Fidelity - Global Enhanced Income  Global Equity Income GB00BD1NLL62 Medium risk
Fidelity - Index Pacific ex Japan  Asia Pacific Excluding Japan GB00BLT1YS69 High risk
Fidelity - Strategic Bond  Sterling Strategic Bond GB00B469J896 Low risk
First State - Global Listed Infrastructure Global GB00B24HJC53 High risk
Fundsmith - Equity Global GB00B4Q5X527 High risk
Henderson Inst - Overseas Bond Global Bonds GB0007673055 Medium risk
JPM - Japan Japan GB0030879471 High risk
L&G - All Stocks Gilt Index Trust  UK Gilts GB00B8344798 Low risk
L&G - Emerging Markets Government Bond (US$) Index Global Emerging Market Bond GB00B7MJV331 Medium risk
L&G - Managed Monthly Income Trust  Sterling Corporate Bond GB00B0CNHQ18 Low risk
L&G - Sterling Corporate Bond Index Sterling Corporate Bond GB00B4M01C47 Low risk
Legg Mason - IF Japan Equity  Japan GB0033507467 High risk
McInroy & Wood - Balanced Mixed Investment 40%-85% Shares GB00B7RRJ163 Medium risk
MI - Chelverton UK Equity Growth  UK All Companies  GB00BP855B75 Medium risk
Schroder - Global Real Estate Securities Income Property GB00BDD2DJ32 High risk
Threadneedle - Emerging Market Bond Global Emerging Market Bond GB00B817DW83 Medium risk
Threadneedle - European Corporate Bond  Global Bonds GB00B7MJ0253 Medium risk
Threadneedle - Global Bond  Global Bonds GB00B8C2M701 Medium risk
Threadneedle - UK Social Bond Sterling Corporate Bond GB00BF233790 Low risk
Vanguard - LifeStrategy 20% Equity Mixed Investment 0%-35% Shares GB00B4NXY349 Low risk
VT - De Lisle America  North America GB00B3QF3G69 High risk

May's Best of the Best Selection - (grouped by risk)

Here is May's shortlist grouped by their risk category (funds unchanged from last month are in black while new additions are in green):

 

Fund name Sector ISIN Code Risk level
CF - Prudential Dynamic Focused 0-30 Portfolio Mixed Investment 0%-35% Shares GB00B5BNX690 Low risk
L&G - Sterling Corporate Bond Index Sterling Corporate Bond GB00B4M01C47 Low risk
L&G - Managed Monthly Income Trust Sterling Corporate Bond GB00B0CNHQ18 Low risk
Threadneedle - UK Social Bond Sterling Corporate Bond GB00BF233790 Low risk
Barclays - Sterling Bond Sterling Strategic Bond GB00B72Y6K08 Low risk
L&G - All Stocks Gilt Index Trust UK Gilts GB00B8344798 Low risk
Aberdeen - European High Yield Bond Sterling High Yield GB00B5968F40 Low risk
Vanguard - LifeStrategy 20% Equity Mixed Investment 0%-35% Shares GB00B4NXY349 Low risk
AXA - Sterling Strategic Bond Sterling Strategic Bond GB00B0LLCW73 Low risk
Fidelity - Strategic Bond Sterling Strategic Bond GB00B469J896 Low risk
Baillie Gifford - Emerging Markets Bond Global Emerging Market Bond GB00B39RMP13 Medium risk
Henderson Inst - Overseas Bond Global Bonds GB0007673055 Medium risk
Threadneedle - European Corporate Bond Global Bonds GB00B7MJ0253 Medium risk
Threadneedle - Global Bond Global Bonds GB00B8C2M701 Medium risk
L&G - Emerging Markets Government Bond (US$) Index Global Emerging Market Bond GB00B7MJV331 Medium risk
Threadneedle - Emerging Market Bond Global Emerging Market Bond GB00B817DW83 Medium risk
McInroy & Wood - Balanced Mixed Investment 40%-85% Shares GB00B7RRJ163 Medium risk
Fidelity - Global Enhanced Income Global Equity Income GB00BD1NLL62 Medium risk
BlackRock - NURS II Consensus 35 Mixed Investment 0%-35% Shares GB00B7W6H253 Medium risk
MI - Chelverton UK Equity Growth UK All Companies GB00BP855B75 Medium risk
Legg Mason - IF Japan Equity Japan GB0033507467 High risk
AXA - Framlington Japan Japan GB0003500179 High risk
CF Canlife - North American North America GB00B73N3278 High risk
JPM - Japan Japan GB0030879471 High risk
Schroder - Global Real Estate Securities Income Property GB00BDD2DJ32 High risk
Fidelity - Asia Pacific Opportunities Asia Pacific Excluding Japan GB00BQ1SWL90 High risk
VT - De Lisle America North America GB00B3QF3G69 High risk
Fidelity - Index Pacific ex Japan Asia Pacific Excluding Japan GB00BLT1YS69 High risk
First State - Global Listed Infrastructure Global GB00B24HJC53 High risk
Fundsmith - Equity Global GB00B4Q5X527 High risk

The funds that dropped out of the Best of the Best Selection

For reference the funds from last month that dropped out of the 80-20 Best of the Best list are listed below. Many of them remain in the Best funds by Sector selection:

 

Fund name Sector ISIN Code Risk level
Aberdeen - Euro Corporate Bond Global Bonds GB00BWK27T75 Medium risk
Aviva Inv - Higher Income Plus Sterling Strategic Bond GB0032494576 Low risk
AXA - Global Distribution Mixed Investment 20%-60% Shares GB0008309287 Medium risk
BlackRock - Corporate Bond Sterling Corporate Bond GB0005769541 Low risk
Henderson - UK Absolute Return Targeted Absolute Return GB00B5KKCS68 Low risk
HSBC - Pacific Index Asia Pacific Excluding Japan GB00B80QGR26 High risk
Investec - Global Franchise Global GB00B7WN9P32 High risk
JPM - Sterling Corporate Bond Sterling Corporate Bond GB0030877434 Low risk
L&G - Global Technology Index Technology & Telecom GB00B0CNH163 High risk
Legg Mason - IF ClearBridge US Equity Income North America GB00B3TTBW75 High risk
Liontrust - European Growth Europe Excluding UK GB00B1GKBD09 Medium risk
Man GLG - Continental European Growth Europe Excluding UK GB00B0119370 Medium risk
Neptune - US Income North America GB00B67N4T04 High risk
Newton - Real Return Targeted Absolute Return GB0006780323 Medium risk
Threadneedle - Dynamic Real Return Targeted Absolute Return GB00B93TQ868 Low risk
UBS - Sterling Corporate Bond Indexed Sterling Corporate Bond GB00B448L607 Low risk

The Asset mix

The current asset mix of the new Best of the Best Selection is shown below with last month's figures in brackets:

  • Global Fixed Interest  25% (21%)
  • Alternatives/Other 18% (17%)
  • UK Corporate Fixed Interest (i.e UK bonds) 12% (7%)
  • North American Equities 12%  (17%)
  • Japanese Equities 10% (8%)
  • Asian equities 6% (0%)
  • UK Equities 5% (0%)
  • UK Gilts 4% (0%)
  • Property 4% (4%)
  • Cash 4%  (1%)
  • European Equities 0% (9%)
  • Other international equities 0% (6%)
  • Emerging markets (0%)

80-20 Investor's outperformance continues even during the market sell-off

As you know the Best of the Best Selection is the shortlist of the best funds highlighted by our 80-20 Investor algorithm split into high, medium and low risk categories. This shortlist is updated at the start of every month.

The green line in the chart below (click to enlarge) shows how a portfolio would have performed since inception (in August 2014) if it had been split equally between the Best of the Best Selection funds and then switched each month when each new shortlist was published. I have also charted the performance against that of the FTSE 100 (the black line) and the average cautious managed fund (blue line) and the average managed fund with up to 85% equity exposure (red line). In reality the 80-20 Investor's asset allocation typically lies between these two as it usually has 60-85% exposure to equities at any one time. So they provide a good comparison of how fund managers with a similar remit have fared over the same period.

80-20 Investor outperformance May 2016

As you can see, since launch in August 2014 the 80-20 Investor portfolio has HUGELY outperformed the average managed fund and the market.

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MTTM Podcast 84: How to get free Motor Legal Cover, Tax charges on 2nd properties and What is a golden cross? http://moneytothemasses.com/news/podcast/mttm-podcast-84-how-to-get-free-motor-legal-cover-tax-charges-on-2nd-properties-and-what-is-a-golden-cross http://moneytothemasses.com/news/podcast/mttm-podcast-84-how-to-get-free-motor-legal-cover-tax-charges-on-2nd-properties-and-what-is-a-golden-cross#comments Mon, 02 May 2016 11:17:40 +0000 http://moneytothemasses.com/?p=22136 Listen to Episode 84 Click on the media player below to listen to Episode 84 of the MoneytotheMasses.com podcast. You can listen to other episodes by clicking on 'More Episodes'. Subscribe to the podcast You can also subscribe to the show via iTunes   Show transcript coming soon...

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Listen to Episode 84

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