Wednesday, 3 October 2018

Another Index Fund

Continuing the process of moving gradually away from managed to index funds I've swapped my holding of First State Global Infrastructure for the iShares Pacific ex-Japan fund.

This gives me an OCF (Ongoing Charges Figure) saving of about 0.6% a year. In real terms, based on the size of the holding that's a difference of about £3,500 over 10 years, assuming 5% annual growth.

It's not just about the charges though. I'm finding that in making my own decisions it's easier to work with fewer variables, which means not holding so many specialist funds. These are ones that can seem so attractive because it's easy to understand what they do e.g. mining, agriculture or biotech.

Instead, I'm more interested in looking at the geographical balance of my portfolio, and in these terms it's a move that adds weight to Australia/developed Asia at the expense of North America/developed Europe.


The Rural Investor

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