David Fuller's view

My plan is to remain fully invested but I believe these changes have improved the portfolio’s quality.

Reinvesting capital from Tuesday’s sales, I have now considerably increased the size of my investment in the sterling-denominated JPMorgan Chinese Investment Trust (JMC LN).  It is now my third largest equity position, after purchases at 181.50 and 182.50 on 2^nd & 3^rd December.  I believe JMC gives me a much more appropriately diversified portfolio of Chinese shares for the new bull market that appears to be underway.  It also sells at a discount of -7.621 to NAV.  However, the Atlantis China Healthcare Fund, which I sold a few days ago, served me well during the period of China’s overall underperformance.  One note of caution, JMC is testing psychological resistance from its previous highs, although there is more underlying support this time.  Nevertheless, I have held some capital in reserve, in case there is a pullback. 

I have also increased the size of my investment in Bayerische Motoren Werke (BMW), paying £71.70, and here is BMW in Sterling.  It has an estimated p/e of 10.10 and yields 2.85%, according to Bloomberg.