I definitely agree that risk profile is a personal choice and I think this fits me for the moment. After a year or two I’ll examine the split again.
If anyone is interested, I plugged my split into Curvo’s Backtesting tool. I’m not sure now accurate this is as it’s Euro-based and I’ve tweaked the funds slightly so that the historic data covers the 2008 crash. Since 2006 it would have returned 7.3% compared to 8.4% for MSCI World, with a less risky Sharpe ratio. I’d be happy with that for the next decade!
The investment trust sector tends to do quite well when it comes to alternatives, the closed-end structure is very beneficial. The following is a totally biased choice as I hold them:
TR Property Investment (TRY)
Foresight Forestry (FSF)
Hipgnosis Songs (SONG)
Renewables Infrastructure (TRIG)
International Public (INPP)
The infrastructure sector and renewables have quite a few options now available, have a look, you might find something suitable. The AIC’s website is good start: AIC-sectors.
Some of these are rather defensive and have done much better lately than bonds.
No, I haven’t forgotten that and I am keeping up payments into my work pension. However for a couple of personal reasons I would like to be able to access the money I’m putting away before I am 55 should I need/want to.
Interesting… bonds haven’t been going well so the idea of buying into alternative areas is attractive. Owning a bit of the rights to a bunch of songs is kind of fun too!
I’d worry about whether these are diversified or large enough. Do you know now these differ from ETFs?