Rebalancing Investment Portfolio

[MartinB]

Hi Guys,

2 years ago a financial advisor helped me setup an investment portfolio using a combination of managed funds and ETF's. So far I have been pretty happy with the performance.

However, I am now concerned that the %'s are a bit too heavy in the fixed income class.

Current breakdown of the portfolio is:



I am considering shifting the bulk of the fixed income funds into an "alternative" asset class as I am thinking interest rates have nowhere else to go but up. My current thinking is something like this:



Where approx 20% moves into "alternatives" leaving just over 3% fixed income.

Interested in peoples opinions.

 

[luutzu]

Hi Guys,

2 years ago a financial advisor helped me setup an investment portfolio using a combination of managed funds and ETF's. So far I have been pretty happy with the performance.

However, I am now concerned that the %'s are a bit too heavy in the fixed income class.

Current breakdown of the portfolio is:

View attachment 72339

I am considering shifting the bulk of the fixed income funds into an "alternative" asset class as I am thinking interest rates have nowhere else to go but up. My current thinking is something like this:

View attachment 72340

Where approx 20% moves into "alternatives" leaving just over 3% fixed income.

Interested in peoples opinions.

hmmm... people actually get paid to "advise" those kind of investment decisions? Shite. Might as well buy yourself an index fund on each major exchange.

Don't think we can give financial advise... but...

But if you think that interest rate is going to go up, and over next couple of years I'd bet that you'd be right... increase interest rate will mean lower property prices. Given the leverage most of the REITs would be involved in, it'll probably send more than a few of them broke... so maybe get out of property too.

 

[DeepState]

Hi Guys,

2 years ago a financial advisor helped me setup an investment portfolio using a combination of managed funds and ETF's. So far I have been pretty happy with the performance.

However, I am now concerned that the %'s are a bit too heavy in the fixed income class.

Current breakdown of the portfolio is:

View attachment 72339

I am considering shifting the bulk of the fixed income funds into an "alternative" asset class as I am thinking interest rates have nowhere else to go but up. My current thinking is something like this:

View attachment 72340

Where approx 20% moves into "alternatives" leaving just over 3% fixed income.

Interested in peoples opinions.

What are the 'alternatives'? What is your age and general circumstances? Can't really say too much about this without that. What the adviser has proposed is pretty typical of a Balanced style of investment. It would be a default choice in most cases.

I largely agree with what you are saying in broad terms.