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  1. #1
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    Default diversified share portfolios

    To construct a diversified equity portfolio for long term hold I am confused with the differences suggested by different brokers. Some have very low allocated to NZ and much higher global > 50%
    I am working towards
    NZ 40%
    ASX 20%
    Global 40%
    I am higher in NZ due to good dividends and imputation credits.
    Should I treat NZ and ASX as one market?
    Any comments about percentages?

  2. #2
    percy
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    I really think you must use common sense constructing any portfolio.
    I now only follow NZ and Australian shares.
    Australian shares do not pay as high dividends as NZ shares and carry no imputation credits.
    So a good NZ share will pay you a net 5%, while after tax a good Aussie will be around 2%.
    It is also a lot easier to follow NZ and Aussie shares.
    I used to be about 60% NZ,40% Aussie,but am now about 80% NZ, as NZ shares have been out performing Aussie.
    With Trump the US market is now potentially very volatile.
    You can get exposure to US with FPH and THL,while EBO gives a very large exposure to Aussie.
    Be careful that you do not replace your winners with losers trying to "keep your portfolio in balance."
    That is broker talk for churm,which destroys clients wealth, by increasing brokers' wealth.
    Last edited by percy; 12-03-2017 at 10:23 AM.

  3. #3
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    Quote Originally Posted by percy View Post
    Be careful that you do not replace your winners with losers trying to "keep your portfolio in balance."
    That is broker talk for churm,which destroys clients wealth, by increasing brokers' wealth.

    S&P/ASX 200 Resources Index last 12 month investor returns = 45.57%

    Sometimes it pays to rebalance your portfolio.

  4. #4
    percy
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    HBL. 1 year 30.33% plus fully imputed divies.
    SCL..1 year 42.04% " " " " .
    TNR..1 year 36.36% " ' " " .
    Good enough for me,to keep my well balanced portfolio as it is.
    ps.Growing eps will see growing dividends.[fully imputed] which will drive their share prices.
    Last edited by percy; 12-03-2017 at 12:56 PM.

  5. #5
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    Quote Originally Posted by percy View Post
    HBL. 1 year 30.33% plus fully imputed divies.
    SCL..1 year 42.04% " " " " .
    TNR..1 year 36.36% " ' " " .
    Good enough for me,to keep my well balanced portfolio as it is.
    ps.Growing eps will see growing dividends.[fully imputed] which will drive their share prices.
    Ha, definitely fair enough, however it depends on how "active" your investment strategy is. I got the impression the post was more concerning a buy & hold passive asset allocation.

  6. #6
    percy
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    Quote Originally Posted by huxley View Post
    Ha, definitely fair enough, however it depends on how "active" your investment strategy is. I got the impression the post was more concerning a buy & hold passive asset allocation.
    Well I would think if you held onto HBL,SCL,and TNR for the next 5 or 10 years you would beat any index,and in the meantime the fully imputed divies could be reinvested or enjoyed.!!..lol..
    Last edited by percy; 12-03-2017 at 01:17 PM.

  7. #7
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    Quote Originally Posted by percy View Post
    Well I would think if you held onto HBL,SCL,and TNR for the next 5 or 10 years you would beat any index,and in the meantime the fully imputed divies could be reinvested or enjoyed.!!..lol..
    No doubt, but if you're trying to get as much return as you can for the least amount of risk a basket of shares might still be a better option. All good if you're happy to take high conviction view on just three nz listed vehicles but you'd want to beat the overall market by a large margin to justify those positions.

  8. #8
    percy
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    Well why not add AWF,EBO,EVO,RBD,SAN and SUM to HBL.SCL and TNR list,along with FPH and THL..
    And in Aussie you could stsrt off with,KKT,LOV,PGC and RXP.
    Note RBD gives exposure to NZ,Aussie and Hawaii.
    Last edited by percy; 12-03-2017 at 02:03 PM.

  9. #9
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    Quote Originally Posted by voltage View Post
    ...
    Should I treat NZ and ASX as one market?
    Any comments about percentages?
    Some brokers treat NZ and OZ as one market with all other markets classified as foreign.

    However I think OZ should be treated as foreign. Many Oz shares may be exempt from FIF rules. However taxation issues (eg inability to claim Australian franking credits) justify investing in shares in a less successful NZ company, rather than in an Australian Company. As ever, differing taxation considerations help warp the optimal investment of capital.

  10. #10
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    Quote Originally Posted by percy View Post
    Well why not add AWF,EBO,EVO,RBD,SAN and SUM to HBL.SCL and TNR list,along with FPH and THL..
    And in Aussie you could stsrt off with,KKT,LOV,PGC and RXP.
    Note RBD gives exposure to NZ,Aussie and Hawaii.
    Looks good, I hold a few

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