Launching the Boring Money Fund – the wisdom of our crowd
11 July, 2017
In the runup to Christmas, we asked you guys which markets you liked for 2021. About 350 of you told us the regions and sectors you liked, which we've added together to create the Boring Money Fund. It's a fund of funds which, like a Russian doll, builds layer upon layer. Inside are 15 funds or ETFs from different regions, and inside each of those are a plethora of diverse shares and other assets linked by themes or regions. Check it out...
Around 350 people gave us detailed feedback on which asset classes, regions and sectors you wanted to back.
We used your feedback (https://www.boringmoney.co.uk/learn/articles/hollys-blog-happy-christmas-and-a-look-ahead-to-2021/) 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 (https://www.boringmoney.co.uk/learn/articles/hollys-blog-the-boring-money-fund-the-wisdom-or-the-folly-of-our-crowd/)
Take a look inside in the Boring Money Fund
Below are all the funds (https://www.boringmoney.co.uk/learn/investing-guides/product-guides/funds/) and ETFs (https://www.boringmoney.co.uk/learn/investing-guides/product-guides/etfs/) we used to allocate our money to the asset classes you told us. Where available we also bought sustainable (https://www.boringmoney.co.uk/sustainable-savers-old/) 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 (https://www.boringmoney.co.uk/isas-pensions/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)
HSBC American Index
iShares Global Clean Energy UCITS ETF
Invesco S&P 500 ESG Index
Vanguard FTSE Emerging Markets UCITS ETF USD Acc GBP
iShares Nasdaq US Biotechnology UCITS ETF USD (Acc) (GBP)
HSBC Japan Index Fund Accumulation C
FTSE Developed Europe ex UK UCITS ETF
HSBC MSCI Pacific ex Japan UCITS ETF GBP
iShares Core FTSE 100 UCITS ETF GBP (Dist)
iShares MSCI World ESG Screened UCITS ETF USD (Acc)
IShares MSCI EM ESG Enhanced
L&G Future World ESG UK Index Fund
iShares Healthcare Innovation UCITS ETF
Fidelity Index Pacific ex Japan Fund P Accumulation Shares
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...