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Advice to place money
Martina
Posted: 05 June 2017 20:44:31(UTC)
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Over the last 10 months I’ve sliced profits from my Global Smaller Co’s, Global Equity Inc, UK Equity Inc, European and Infrastructure UT’s to fund various purchases but find myself with £3,500 left over. I’m keen to put it back into my S&S ISA but am unable to determine where to put it back into. I seem to be covered geographically with my other funds and also have 35% of my overall portfolio in both NS&I’s Inflation linked and Premium Bonds. The asset/fund that I don’t possess in my portfolio is Corporate/Strategic bonds. Is this an area that I should consider? Or am I already sufficiently covered into bonds?
Alan Selwood
Posted: 05 June 2017 23:06:23(UTC)
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Martina;47646 wrote:
... I’m keen to put it back into my S&S ISA but am unable to determine where to put it back into.....


Did you physically remove the sale proceeds from an ISA then? If so, you won't be able to 'put it back in' unless you have an unused ISA allowance for 2017-18 or happened to have been in the new type of ISA where you can draw out and replace within strict time limits. (ISAs in existence before the new legislation will almost certainly NOT allow you to do this).
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Jon Snow on 06/06/2017(UTC)
Mr Helpful
Posted: 06 June 2017 07:18:34(UTC)
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Martina;47646 wrote:

but find myself with £3,500 left over. I’m keen to put it back into my S&S ISA but am unable to determine where to put it back into. I seem to be covered geographically with my other funds and also have 35% of my overall portfolio in both NS&I’s Inflation linked and Premium Bonds. The asset/fund that I don’t possess in my portfolio is Corporate/Strategic bonds. Is this an area that I should consider? Or am I already sufficiently covered into bonds?


No Bonds are listed !!!
Maybe Gilts or other are covered in some of the funds?

However if the portfolio is :-
65% Stocks
35% Cash (mainly NS&I IL Certs + Prem Bonds)
this could be viewed as a fair balance, dependent on age or circumstances.
Bonds could then be argued uneccesary; since Cash may be providing the needed counter-balance to Stocks.

Those seeking -ve correlation (to Stocks) from Intermediate to Long Gilts or similar term Corporate Bonds, tread an uncertain path IMHO if interest rates do ever rise.
We are presently keeping the maturities on the small position Gov't Bonds (Gilts and Treasuries) and Corporate Bonds in our own portfolio to short term; seeking stability rather than any -ve correlation with Stocks.

Hang on to those NS&I IL Certs !!!
With RPI linking they are a treasure in this challenging investment climate.
Also a heritable tax shelter !!!

P.S. Not to worry unduly IMHO about holding cash ready reserves in dealing accounts.
2 users thanked Mr Helpful for this post.
Mickey on 06/06/2017(UTC), Tyrion Lannister on 16/06/2017(UTC)
Martina
Posted: 06 June 2017 10:28:47(UTC)
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Thank you Alan and Mr Helpful for your guidance, sadly the vast majority of my sale has been in the 2017-18 tax year and fully understand that I’m now unable to re-invest until next year- schoolgirl error. Not on top of my game, I can’t imagine too many on this forum making such a blunder.

I’ve made a portfolio analysis through my platform of my S&S ISA and it reveals that I’m 1% in Bonds. I take on board all you’ve said Mr Helpful and on balance will not at this time consider investing into Bonds/Gilts outside of an ISA. My holdings within NS&I allow me to sleep a little easier at night, although some may consider 35% to be rather excessive. My outstanding £3,500 will now be used to purchase some additional premium Bonds, I’m unable to add to my inflation linked Bonds, with it sitting available to use on the side-lines as and when valuations in the markets look a little more favourable. I’m happy with my lot and am prepared to wait till opportunities arise.
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Mr Helpful on 06/06/2017(UTC)
Alan Selwood
Posted: 06 June 2017 21:04:09(UTC)
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Cash looks preferable to bonds at the momdnt - ammunition for buying after any big upheaval (after allowing a month or so for the dust to settle).
2 users thanked Alan Selwood for this post.
Martina on 06/06/2017(UTC), dlp6666 on 07/06/2017(UTC)
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