Rebalancing the portfolio

So as the new (tax) year started it was time to do further rebalancing of my self managed ISA.

Having grown to a size where I was no longer comfortable having that amount of individually owned shares, I rebalanced last summer to increase the amount I held in trackers and Investment Trusts.

I had enough trading credits (with the way iii has changed their fees) to do a couple of purchases and try and shift things round.

Looking at my handy little spreadsheet I could see that I was under invested on both Investment Trusts and trackers – with Investment Trusts being the most underweight.

With that said, I decided to chuck all the cash that had built up into my chosen Investment Trusts to try and bring things up.

Purchase 1 – Scottish Mortgage

So this was already a large holding in my portfolio, and I added further to it at £4.51 per share bringing my average price paid up to £3.51. Why add more to this if it was already one of my larger holdings? Simply as it is a (in my opinion) very well run IT, and has been giving some very good returns since I first bought it. Granted the yield is low at present (sub 1%) which is far from ideal, but if it continues to grow I will be happy.

Secondly, they have a number of unlisted investments which I am also keen to get exposure to which usually helps my overall returns.

Overall, even with the most recent purchase, I am up over 30% on the holding, without the recent purchase it was over 50%. I have this IT set as dividend reinvesting as well so over the next 5 – 10 years this should continue to grow nicely.

Purchase 2 – JFJ

So my trackers exclude Japan, and my JFJ holdings were very small so to try and gain a bit more exposure I chose to top this holding up. Over the last 5 years it has more than doubled and so I brought it up to a more balanced level with some of the other ITs (Russia and NCYF are lower). This is another fire and forget IT and it will only come under review once my portfolio is under review again.

Why ITs and not the Trackers?

Two very simple reasons. Firstly, the ITs were more under represented than the trackers, and so based on the simple rules the IT won the investment.

Secondly, the tracker that is due to be bought next is the S&P500. Whilst I try not to time the market, it feels high to me so anything I could do to delay the better. I can no longer avoid it however, so the next time I will have to buy the S&P500 tracker, but oh well.

Onwards and upwards as they say!


Author: fireinlondon

Fighting the high cost of living in London

2 thoughts on “Rebalancing the portfolio”

  1. The fact that you’re saying that your next purchase will be the S&P 500 tracker will be unavoidable shows that you’re not timing the market. I’ve done that on occasion – purchased ITs instead of going for the index tracker but like you, I’m trying to balance things so at some point, it’s got to be the tracker which wins. I have some cash coming available from next month (from an annual savings account) and that’s been earmarked for trackers regardless, much as I’d love to chuck it all at SMT! 🙂


    1. Hi Weenie,
      Yes – the fact that I have no other option now as that is by far the most underweight I can no longer avoid it, even if it does pain me when it is so high!
      The advantage of the GTP ISA is I don’t ever need to think about the balancing or anything just forget, whereas this lot I will get to keep balancing – I am hoping I can get good enough to get stellar returns in my selected stocks, cash in, top up the ITs and Trackers, and repeat!

      Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: