Launching the Boring Money Fund – the wisdom of our crowd

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Around 350 people gave us detailed feedback on which asset classes, regions and sectors you wanted to back.

We used your feedback to create our very own Boring Money Fund. Free from any constraints, not following any benchmark, and with no restrictions, we have simply pulled together how you guys would invest your money in 2021, with the simple mandate to do as well as you can in the next 12 months.

On 31st December, our MD Holly Mackay opened up a trading account and allocated £2,000 to this portfolio. (Excluding trading costs for the purpose of this experiment. We do note that transaction fees mean this would be a silly exercise to do with this relatively low sum as you spend a big % chunk on trading costs.)

We will track our fund throughout the year and see how well it does! 
Read more background detail in Holly's Blog

 

Take a look inside in the Boring Money Fund

Below are all the funds and ETFs we used to allocate our money to the asset classes you told us. Where available we also bought sustainable funds in your requested proportions. Not all asset classes have sustainable options and some are only available to retail investors who go through some lengthy “are you a sophisticated investor” rigmarole. We did our best with the products available to retail investors on mainstream investment platforms!

For interest, we chose AJ Bell Youinvest to hold these assets. They have a low 0.25% administration cost for assets and ballpark transaction fees. We could have used trading providers which have lower charges, but these guys tend to hold only the most mainstream ETFs and were unable to support the breadth of stuff we wanted.

(Sustainable funds highlighted in green - making up 32% of total fund)

 

HSBC MSCI China UCITS ETF (GBP)

12.80%

HSBC American Index

11.60%

iShares Global Clean Energy UCITS ETF

9.50%

Invesco S&P 500 ESG Index

8.60%

Vanguard FTSE Emerging Markets UCITS ETF USD Acc GBP

7.00%

iShares Nasdaq US Biotechnology UCITS ETF USD (Acc) (GBP)

6.20%

HSBC Japan Index Fund Accumulation C

6.00%

FTSE Developed Europe ex UK UCITS ETF

5.90%

HSBC MSCI Pacific ex Japan UCITS ETF GBP

5.80%

iShares Core FTSE 100 UCITS ETF GBP (Dist)

5.70%

iShares MSCI World ESG Screened UCITS ETF USD (Acc)

5.50%

IShares MSCI EM ESG Enhanced

4.80%

L&G Future World ESG UK Index Fund

4.20%

iShares Healthcare Innovation UCITS ETF

4.10%

Fidelity Index Pacific ex Japan Fund P Accumulation Shares

2.30%



Where in the world?

 

How do you think our fund will do?

Is it a good idea to base a fund on the wisdom of crowds? Or do you expect this will show up the folly of crowds? Let us know in the comments...

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Holly's Blog: The Boring Money Fund - the wisdom (or the folly?) of our crowd

It's the first blog of 2021! In the run-up to Christmas we asked you guys which markets you liked for 2021. About 350 of you gave us a detailed breakdown of which regions and sectors you liked. We added all this together and have created the Boring Money Fund 2021.

Holly's Blog: The Boring Money Fund - the wisdom (or the folly?) of our crowd

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