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  1. #1

    Smaller companies within a wider portfolio

    I would appreciate knowing what proportion of equities people generally hold as Smaller Companies/SMEs as I wonder if I am a little high.

    SmCo/SME funds make up 29.4%-34.7% of the equities I hold:

    UK: 35% of my equities are SmCo/SME (Liontrust UK Sm Co, the rest in LT UK)
    Europe: 43% (Baring Europe Select, the rest in Blackrock Cont Eur Income)
    US/general global: 0% (all in Ballie Gifford Global Alpha Growth, VLS and Fundsmith)
    Japan: 100% (BGFD)
    EM: 31%-64% (31% IGC which is India SME; 33% ITEQ which is Israel hi tech – not an SME fund as such but many of the holdings will be; 36% TEM).

    This is a retirement portfolio taking an 8-10 year view. I hold SmCo/SMEs variously for diversification, higher risk/reward, or (in EM) as a bit of a tilt.

    In UK and Europe I am open to rebalancing. For Japan I like Baillie Gifford but could move part of BGFD into their broader Japanese OEIC. I realise my EM holdings are not typical but I am comfortable with them.Thanks.

  2. #2
    Small company funds make up just over 5% of my / OH's portfolio although there will be some smaller companies in other funds. I wouldn't look to have more than 10% in this sector, but that is just what we feel comfortable with.

  3. #3

  4. #4
    dont see any point in smaller companies. too much risk for little reward imo. if i wanted to go for smaller companies i would only consider a managed fund or individual stock selection and even these would make up max 5% of total portfolio.

  5. #5
    IIRC my equities are split 45% developed, 12.5% property, 12.5% EM, 15% value, 15% small with no home bias. So I suppose thats 20-25% small.
    There's a lot of discussion on whether any small or size premium still exists, and if it does it takes decades to show above noise. I'm sticking with it.


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