RetireJapan

Hello,
I hope everyone is doing well.

While I recognize that this forum primarily focuses on topics related to Japan, I'm reaching out here seeking advice regarding an investment portfolio that has been recommended to my parents, who currently reside in Portugal. I apologize for the off-topic nature of my query, but I couldn't find a more suitable platform for unbiased feedback. My understanding of investment matters is basic, so I would greatly appreciate your insights and guidance.

The portfolio that has been proposed to my parents consists of the following components (I've provided links to relevant information):

**Stocks:**
1. [Schroder ISF US Large Cap (EUR)](https://www.morningstar.co.uk/uk/funds/ ... F0GBR04F0J)
2. [Fidelity European Dynamic Growth (EUR)](https://www.morningstar.co.uk/uk/funds/ ... F000000KD4)
3. [Robeco Capital Growth - BP Global Premium Equities (EUR)](https://www.morningstar.co.uk/uk/funds/ ... F0GBR05VCE)
4. [Goldman Sachs Japan Equity Portfolio (EUR Unhedged)](https://www.morningstar.co.uk/uk/funds/ ... F00000WQO2)

**Bonds:**
1. [BlackRock Euro Short Duration Bond Fund (EUR)](https://www.morningstar.co.uk/uk/funds/ ... F0GBR04AS2)
2. [BPI Obrigações 2024](https://www.bancobpi.pt/particulares/po ... acoes-2024) (Information available in Portuguese only; use Google Translate for more details)

Upon initial review, I have several concerns about this portfolio. Firstly, the associated fees appear to be quite high.
For instance:

Am I correct in interpreting these fees as 1.46% + 0.54% + 1.25% , totaling 3.25%? I would appreciate any clarification on this matter.

Secondly, I've noticed that the portfolio is heavily skewed towards the EU market, which, in my opinion, makes it unbalanced and not adequately diversified. Overall, I'm not convinced that this portfolio is in their best interest.

If any of you could spare some time to evaluate this portfolio and provide your insights, I would be immensely grateful. Additionally, I plan to explore alternative investment options available at their bank once I have a better understanding of what might be more suitable.

My parents have limited knowledge in this area, and it's disheartening to think they may be receiving suboptimal advice. Any feedback or suggestions you can offer would be highly valued.

Thank you all in advance for your assistance.

to see the images, you might need to right click on them and open in new tab to be able to see them..
Sorry for the inconvenience

I think fees tend to be higher in the EU but even so that is an expensive set of choices.

Schroder ISF US Large Cap (EUR): 4% initial load and 2.33% annual charge
Fidelity European Dynamic Growth (EUR): 1.04% annual charge
Robeco Capital Growth - BP Global Premium Equities (EUR): 5% initial charge, 1.46% annual
Goldman Sachs Japan Equity Portfolio (EUR Unhedged): 0.83% annual charge
BlackRock Euro Short Duration Bond Fund (EUR): 5.26% initial load, 0.9% annual charge

The funds charging below 1% are perhaps not totally unreasonable for fees but I have to say I have not seen fees as awful as shown on those other funds with both initial loads and annual charges over 2% in a long time. Personally I would not stay with an advisory firm that would put me in such expensive choices.

You didn't give the fund allocations so I can't tell if the weighting is unreasonable. It is appropriate to have a little bit of home bias but I would agree with you that even someone living in the EU should not get too overweight in their local region. For the four equity funds you listed one is US-only, one is EU-only, one is global, and one is Japan only. If the allocations are equal to each fund then they're over-weighted Japan.

Thank you for your reply,

So my reading was correct, those fees are just outrageous..
I posted an image of the allocation at the beginning of my post.

It doesn't show but if you right click on it and open in a new window you should be able to see it.
If not, I'll try to repost the screenshot.

Michel wrote: ↑Mon Sep 11, 2023 1:44 pmI apologize for the off-topic nature of my query, but I couldn't find a more suitable platform for unbiased feedback.

You could try bogleheads: https://www.bogleheads.org/forum/viewforum.php?f=22

edit: https://www.bogleheads.org/forum/viewto ... 1#p7456731

oh thanks, I will try posting in there then!

TokyoWart wrote: ↑Mon Sep 11, 2023 2:09 pm
You didn't give the fund allocations so I can't tell if the weighting is unreasonable. It is appropriate to have a little bit of home bias but I would agree with you that even someone living in the EU should not get too overweight in their local region. For the four equity funds you listed one is US-only, one is EU-only, one is global, and one is Japan only. If the allocations are equal to each fund then they're over-weighted Japan.

Found out how, here is the allocation that was suggested:

62.5% in cash - what is the purpose? It may be good to ask your parents what they told this advisor.

The equity allocation makes no sense to me. US should be a much larger %age.

So apparently in Portugal, when you open an account, only 30% of the money can be invested (some kind of regulation), or so the advisor says. Now that you mention it, more than 30% is being already invested so it doesn't match.

Now, I told my parents to no follow through because of the fees being too high, to which they contacted the advisor that guarantees them that there is no fee/commission...I just cannot believe that to be true, but they have been confirmed by two different staff.
The institution they are using is a bank that they have been using since always so my parents trust them and value their advice. I just find it hard to believe..
The advisor told them to wait and see next month and if they don't like it they can change products, and that way they'll see that no fees were applied.

The front-end loads have already been paid, so water under the bridge?