Quinn Life (Irish Life) allocation

[gnf_ireland]

Hi all
I would like some opinions on the following Quinn Life/Irish Life fund allocation. As I said in a different posting, I use these funds to accumulate an investment pot of between 20-30k, and then transfer this to purchase the ETF's of choice - which can be independent of the Quinn Life funds.

My previous allocation worked well for me, and after a number of switches, ended up with the following
Euro 50%
China 10% *had been higher but reduced it in 2012
Biotech 20% *increased it in 2012
Clean Energy 20%
Biotech and Clean Energy in particular done well in 2013, having grown 56% and 35% respectively, but now believe its time to remove the funds from these sectors.


The current proposed allocation for 2014-2015 (will review every ~6 months) is:
Euro 35%
North American 15%
Emerging Markets 20%
Technology 20%
Irish 10%
Any thoughts on this allocation over the next while ? Opinions welcome

About me - 38 year old IT consultant based in Dublin, relatively high risk tolerance looking for growth of 5%-7.5% per annum on equities/funds [last year was better obviously]

 

[Jim2007]

Do not mix sectors and regions in a single view as it may hide under/over risk exposures.

If your objective is a 5 to 7% then it can probably be achieved at a lower risk by allocating more to developed regions and not techs.

 

[PMU]

Your previous asset class allocation was Domestic markets (i.e. euroland) 50%; Foreign developed markets (i.e. biotech; clean energy) 40%; Emerging markets (i.e. China) 10%. Your proposed allocation is Domestic (i.e. euroland) 45%; Foreign developed markets (i.e. North America, tech) 35%; Emerging markets 20%. So you are primarily increasing your exposure to foreign exchange risk (i.e. from 50% to 55% of your portfolio). You are also proposing switching into some markets (e.g. North America; Ireland) that are trading at multi-year highs.

 

[gnf_ireland]

Jim - thanks for the tip re hidden exposures. I will look into this a bit further.
Regarding the objective - thinking about it a bit more, probably looking for double digit returns this year as I have a feeling the market will continue to be at least semi-bullish.

PMU - I understand what you are saying relating to euroland v foreign markets and the currency factor is something which is worth keeping in mind. However, I believe that there would be high levels of correlation between euroland and developed foreign markets and therefore looking for a level of diversification via emerging markets etc. I will look at the industry classification split between these funds and assess accordingly

Regarding North America and Ireland trading at multi-year highs - I am guessing the question is whether there is further growth available in these regions. This is something I will have to assess and make the decision on.

Thank you both for your comments - very valid points raised and will take into account before making a final decision