fund split in my pension

wellsie82

hi all

ive currently got a sipp with HL and have been paying in £80 p/m for the past 6 months or so. im 26 years of age and my main pension is through my work (£250 p/m goes into that and its a final salary scheme which im told is very good)

my sipp is made up of my own contributions and previous small pensions. next month my protected rights currently with L&G will come over and im now looking at how im going to split my cash

ive spent the past week or so looking at lots of different funds, trying to make sure im balanced and trying to make sure all the sectors/locations are covered, here is what ive come up with so far

M & G Global Basics Class X Acc15.0%
Invesco Perpetual High Income Acc10.0%
Fidelity European Acc10.0%
First State Glbl Emg Mkt Leaders Acc10.0%
Invesco Perpetual Monthly Income Plus Acc7.5%
Schroder US Small & Mid Cap Fund Retail A Acc7.5%
Martin Currie North America Accumulation A7.5%
JPMorgan Japan Fund Acc7.5%
Invesco Perpetual Japanese Smaller Cos Acc5.0%
Invesco Perpetual UK Smaller Cos Equity Acc5.0%
Threadneedle European Smaller Cos Class 1 Acc5.0%
First State Global Listed Infrastructure5.0%
CF Eclectica Agriculture5.0%

basically id just like a few opinions on my list. am i overweight or underweight in any funds? have i missed any area? im aware im not directly in any bric's but the first state global leaders looks to cover india, brazil and the other pacific locations

i know people will ask why ive got a sipp when ive only got "funds" listed. the reason for that is that whilst ive been waiting for L&G to transfer over my protected rights ive been dabbling in equities and a few ETF's and these are something which i will look at in future. the funds will form the backbone of my sipp basically and once i build up enough cash i may look at other items to add in to spice things up

my risk is medium/high, i dont want to be too agressive nor do i want to be too cautious, im just wondering whether ive found this balance?

wellsie82

anyone?

wellsie82

sorry to reply back again but just curious as to what people think about this potential split

purch

....lots of Equity Funds, not much Fixed Interest other than the IP Monthly Income which isn't all Bonds

Thats a High Risk portfolio

a7man

There are quite a few high risk funds in the portfolio - as above maybe 1 or 2 fixed interest funds might be worthwhile to make it more med - high risk. However as you are 26 you will likely be looking for higher growth and higher risk and the portfolio you have chosen should provide that. Obviously I dont know about the performance/ expectations of all the funds so cant comment on that!

wellsie82

thanks to both of you for the feedback, im going to have to look into reducing some of my exposure to areas i had looked at

are there any funds that you would suggest for the fixed income, global bonds perhaps?

the other thing is im only going to start off with a pot of cash of about £6-7k (remember this will be my secondary pension with my work pension being of higher value) so im starting to think that maybe my cash will be spread out too much, dont get me wrong i dont want to put all my eggs in one basket but pressumably there is such a thing as having too many fingers in too many pies?

a7man

Well the proportion in each wont change no matter how much you have so the growth percentage will be the same no matter what. Having less funds will probably lead to higher gains, however this also leaves you vulnerable to higher losses. I would take this risk though and diversify as the fund grows.

You could reduce your percentage split into smaller companies/ emerging markets. The are also more actively managed funds, such as those by tactica - these take advantage of market conditions. I havent analysed FI investments recently so cant comment on that.