Comments on: Q2 2022: The Big Bad Bear

By: ITinvestor

ITinvestor — Tue, 26 Jul 2022 17:09:21 +0000

Thanks David. It was a tough six months for many folks from what I can tell. July has seen a decent bounce back , though, especially for growth trusts.

By: David Bonham-Carter

David Bonham-Carter — Tue, 26 Jul 2022 10:31:02 +0000

Thank you as ever for a helpful and interesting update/feature. Judging by the article on Interactive Investor at the following link, it seems in relative terms your portfolio has fared quite well: https://www.ii.co.uk/analysis-commentary/andrew-pitts-trust-tips-short-term-pain-long-term-gain-ii524757

By: ITinvestor

ITinvestor — Tue, 05 Jul 2022 07:18:04 +0000

In reply to Jeremy Brereton.

Thanks Jeremy and interesting question. I’d say I consider it at a couple of levels but fairly loosely.

Within my portfolio, I tend to group holdings into global trusts/funds and specialist sleeves that I think can either outperform over the cycle or help steady the ship (currently tech/private equity, UK small-cap, healthcare/biotech, and infrastructure/renewables). I aim for around two-thirds in global and a roughly equal proportion in each specialist area. When I’m topping up, I’ll look at the current mix and favour areas that look underweight and at more attractive valuations. But within my portfolio, I tend to be 100% trusts and funds that are predominantly focused on equities.

I also monitor the proportion of my cash and property assets relative to my portfolio – the former to ensure I have a decent cushion for near-term expenses but with the latter, the cash flow tends to be a bit lumpy so when it does come along I take a high-level view when considering where to reinvest that.

Hope that’s useful.

By: Jeremy Brereton

Jeremy Brereton — Mon, 04 Jul 2022 20:06:07 +0000

Thank you for the update and also for your profiles in Money Makers – great work.
Since asset allocation is supposed to have as much impact on portfolio performance as stock selection I’m really interested to know if you consider asset allocation when managing your portfolio and if so, what asset allocation do you try to achieve and how do you track it?
Thank you