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SIPP for £200000
NigelV
Posted: 24 May 2018 08:24:38(UTC)
#1

Joined: 24/11/2017(UTC)
Posts: 2


I have loved reading through all the forums and I have learnt alot, so now I am trying to put some of this into practise.

I am putting together a SIPP portfolio as I bring together various old pensions, I still have 20+ until I retire and looking for growth without massive risk. I have had a Sipp for a while but recently added an extra old pension which added nearly 40% extra into the sipp so working to rebalance the investments without just following the old pattern (which was mainly funds) and this is where i see it going. I will have to sell some funds to create this balance. I would like to see a 5% +inflation minimum return yearly, is this a good target or too low?

Scottish Widows 10% (my current work pension i pay into so I try to scrap yearly off this to make sure it is only 10% of the overall portfolio)
ICG Enterprise Trust , Private Equity 5%,(IT) - from org' SIPP
Lindsell Train Global Equity, OIEC, 10% only fund but left over the org' Sipp will take some profits from this to rebalance but will keep due to its great return record.
RIT Capital Partners 6% (IT) - from org' SIPP
Scottish Mortgage 6% (IT) - from org' SIPP
Witan 5%
3i Infrastructure 4%
JP Morgan Mid 4%
Jupiter European Opportunity 5%
Finsbury Growth and Income 6%
JP Morgan US Small Company 4%
TR Property 4%
schroder asia pacific 5%
blackrock throgmorton 4%
Baillie Gifford Japan Trust 4%
worldwide healthcare 4%
Nutmeg Risk 9 (so v.heavy in equity) 10% (mainly in developed world EFTs). i am invested to see how this goes, current record is ok, but of course hasn't been through 2008 style crash/correction.

I wonder if I should include some fixed income, i.e New City High Yeild or Invesco Perpetual Enhanced Income just to provide some balance.
I am too crazy about all these really small "alternative" funds, but wondering is anything I have overlooked?
I am also trying to ensure I don't have too much overlap in investments
I wonder should I keep Lindsell Train Global Equity as my only remaining OEIC or should I find an alternative?
Law Man
Posted: 25 May 2018 17:32:19(UTC)
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Nigel: as you say, this is 'high risk' being mainly equities. As you have over 20 years until you need the money, this is not unreasonable. Be ready to accept a paper loss of up to 50% in the meantime - stay in until they come back.

Fixed income: I would avoid as bond prices are more likely to fall than rise.

Lindsell Train Global Equity: keep it; a good fund.

Scottish Widows: is SW the nominee of an employer sponsored Defined Contributiin scheme? From which you can transfer funds within the scheme? If so check the total charges; and review the underlying investments held.

If you are a 40% income tax payer, keep paying in for a 66.6% uplift ( but watch the Lifetime Allowance).

A continuing return of Inflation plus 5% is not unrealistic, but is optimistic.


1 user thanked Law Man for this post.
Mike L on 30/05/2018(UTC)
Split Cap Jim
Posted: 25 May 2018 18:00:19(UTC)
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Looks like a reasonable range of investments, and my SIPP has 7 of your choices and is also 100% equities. Don't see any real value in bonds at the moment, and even when I retire I will enter drawdown - so expect to say in equities into initial retirement. I'm looking to live off the yield only so capital values are less of a concern.

I don't think 5% +inflation is unreasonable, providing you can accept some volatility. Your fund choice will have delivered a lot more than that over the last 5 years.

You could consider some commodities (BRWM) or technology (PCT), but you have some good diversity already with infrastructure and private equity.

I'm not adverse to holding some funds, so if happy with Lindsell Train I would keep it.
paul armstrong
Posted: 25 May 2018 20:50:14(UTC)
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Joe Soap
Posted: 26 May 2018 08:58:04(UTC)
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Way too many holdings for my liking. I'd look at trimming it down to three or at most four. Looks like an expensively built tracker fund to me.
6 users thanked Joe Soap for this post.
k mc d on 26/05/2018(UTC), william barnes on 26/05/2018(UTC), Jon Snow on 27/05/2018(UTC), Mr Smith on 27/05/2018(UTC), Catch The Pigeon on 30/05/2018(UTC), SAP on 17/06/2018(UTC)
mark spurrier
Posted: 26 May 2018 21:33:00(UTC)
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Fundsmith Equity probably deserves a place
BGFD/BGS........... i would probably go for the OIEC equivalents given current premiums
I like CTY for UK Equity Income growth
JEO - the OEIC version is a better bet as it doesn't get hit with the performance fees
1 user thanked mark spurrier for this post.
Mike L on 28/05/2018(UTC)
Jon Snow
Posted: 27 May 2018 00:16:18(UTC)
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With a £200k fund, I'd be looking at choosing 4 to 6 investments maximum (if you think you know what you want) or a Vanguard fund.
Joe Soap
Posted: 27 May 2018 10:13:14(UTC)
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Jon Snow;62980 wrote:
With a £200k fund, I'd be looking at choosing 4 to 6 investments maximum (if you think you know what you want) or a Vanguard fund.

Exactly. Great advice.
Balvenie
Posted: 27 May 2018 20:13:13(UTC)
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I'm interested to know why only 4 to 6 funds for a pot this size ?

To spread risk should it not be more ?
philip gosling
Posted: 27 May 2018 23:16:35(UTC)
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How many funds ?


One -- if its something like Vanguard 100% Life Strategy ETF but if you are creating your very own ETF\Fund\Trust "....Index..." for the world to follow then maybe 10 at £20,000 each so big enough to make a difference to a portfolio if one wins or loses but not a killer. The more funds you have the more you are creating a world fund index so have you the time, experience or expertise and even interest to do it yourself? " If in doubt there is no doubt " is a good saying to guide you. Worry about am I doing the right thing - not sure - then do not do it. Let an 'expert ' do it for you.
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Balvenie on 28/05/2018(UTC)
Ludditeme
Posted: 28 May 2018 08:11:55(UTC)
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I suspect we are entering a period where an actively managed fund may offer benefits. Low cost trackers have quietly accumulated wealth over the last decade, but I’m not sure that will continue - unless you are prepared to look infrequently and ignore dips along the way.
2 users thanked Ludditeme for this post.
Monty Claret on 28/05/2018(UTC), Balvenie on 28/05/2018(UTC)
NigelV
Posted: 30 May 2018 11:05:11(UTC)
#13

Joined: 24/11/2017(UTC)
Posts: 2

Thanks for all the replies.

LawMan, SW is my employer sponsored Defined Contributiin scheme in which I ensure they make the maximum contributions and I pay in a matching amount to get the maximum benefits.
I can also transfer out of this with no cost.

Yes I agree I have a wide split but I am looking to ensure diversity and exposure, yes I agree it could look like a global tracker. I will be managing my own portfolio which is why I am consilidating into a SIPP to give me flexibility, and will be keeping an eye on this, but of course I don't intend to tinker much.
I expect one or two key changes a year.(for example in the 3 years it has been running I only either added funds to existing ITs bought at the start and only sold one IT and used the proceeds to buy into existing ITs).

I will be running through Fidelity so without dealing charges it should only cost £45 for the IT, and a couple of trades a year, I expect it to cost around £100 a year to run. (obvioulsy there is underlying IT fees).

My plan is as I get closer to retierment is to consolidate down to few key trusts/funds. The £200000 is the current SIPP total, but as I am very close to paying off the mortgage and I will stop paying nusery fees in the next few months I aim to start adding more each month to the SIPP to greatly increase the amount I am saving each month.
Laurence O'Brien
Posted: 30 May 2018 12:05:06(UTC)
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NigelV;63123 wrote:


I will be running through Fidelity so without dealing charges it should only cost £45 for the IT, and a couple of trades a year, I expect it to cost around £100 a year to run. (obvioulsy there is underlying IT fees).


I'm not threadjacking but I'm curious about this comment. I have a Fidelity SIPP which I'm thinking of dumping because it won't let me invest in anything but OEICs and then not all of them (Lindsell Train Japanese, for example). Do they have more than one SIPP on offer where I could invest in ITs?
Blue S
Posted: 30 May 2018 13:27:21(UTC)
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Quote:
I'm not threadjacking but I'm curious about this comment. I have a Fidelity SIPP which I'm thinking of dumping because it won't let me invest in anything but OEICs and then not all of them (Lindsell Train Japanese, for example). Do they have more than one SIPP on offer where I could invest in ITs?


I do not have a Fidelity SIPP but used to have an ISA with them.
The following webpage suggests you can:
https://www.fidelity.co.uk/pension/fidelity-sipp
If you scroll down to the bottom and click on investment finder you get the following page:
https://www.fidelity.co....finder#?investmentType=''
On the IT link it gives 135 ITs.
There are also 118 ETFs and 409 shares as well as the funds.
Joe Soap
Posted: 30 May 2018 14:00:55(UTC)
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Balvenie;63014 wrote:
I'm interested to know why only 4 to 6 funds for a pot this size ?

To spread risk should it not be more ?

Not necessarily, a typical fund or trust may invest in several hundred companies. How far do you want to "spread the risk"? I hold just two funds with a fair bit more than GBP 200k in them.

By buying so many trusts/funds all you are doing is effectively building an expensive and unwieldy tracker fund. The more investments you hold, the more likely this becomes.

If you want to spread your risk right across the world markets it makes most sense to buy a Vanguard or similar tracker fund.
Laurence O'Brien
Posted: 30 May 2018 16:42:48(UTC)
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Blue S;63132 wrote:
Quote:
I'm not threadjacking but I'm curious about this comment. I have a Fidelity SIPP which I'm thinking of dumping because it won't let me invest in anything but OEICs and then not all of them (Lindsell Train Japanese, for example). Do they have more than one SIPP on offer where I could invest in ITs?


I do not have a Fidelity SIPP but used to have an ISA with them.
The following webpage suggests you can:
https://www.fidelity.co.uk/pension/fidelity-sipp
If you scroll down to the bottom and click on investment finder you get the following page:
https://www.fidelity.co....finder#?investmentType=''
On the IT link it gives 135 ITs.
There are also 118 ETFs and 409 shares as well as the funds.


This is where care is needed to avoid falling into the trap that I did. If you drill down, you will find that very few of these ITs can be invested in the SIPP. Most of them are only available in ISAs. I honestly think that for a company like Fidelity to offer such a limited range is very poor and I do regret my choice of provider and that I did not ask the right questions before buying. I hope I can help others avoid the same mistake.
3 users thanked Laurence O'Brien for this post.
Vince. on 30/05/2018(UTC), Tim D on 30/05/2018(UTC), Split Cap Jim on 01/06/2018(UTC)
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