Forum Archive Index - October 1999

["Mark Hubbard" <mhubbard@es.co.nz>]

Hi Brian

To start the ball rolling:

I have 60% of my portfolio in equities; of this, 25% are in NZ equities, and
35% overseas equities. Before I sold out of all but one of my unit trusts,
the overseas equity component was in 'global' unit trusts, ie, no specific
areas, as I thought it prudent to let the professional managers decide which
parts of the world to be invested in.

Now, I shall be investing directly in individual NZ shares for the NZ
component, and using UK 'global' investment trusts, plus the 'Henderson
Technology Trust' (another UK investment trust) to take care of the global
portion. Like you though, I would be interested in also using close ended US
trusts (not paying capital gains tax) - to at least spread currency risk.

Regarding this last point, the logic would be that there is no specific UK
sterling currency risk, as the UK investment funds are invested worldwide,
so if the $NZ starts going up against pound, but down against the $US, one
should still get the advantage of the increasing $US dollar as it filters
into the UK trust - so perhaps it does not matter, theoretically,  if I have
all overseas investment in UK INvestment Trusts (which are investing
globally). I haven't said that very well, but hopefully you see what I mean.

Regards Mark Hubbard


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