HL Sipp ideas for investments.

nnop

Hello All,

Just wondered your views on HL Sipp ideas for investments.

I am looking at investment period over 25 years.

20% Aberdeen emerging markets
20% Artemis strategic assets
20% Insynergy Odey
20% M&G Global basics
20% Neptune Global equity

Interested in your thoughts in the quality and asset allocation. Also if these funds are worth the higher TER over other funds.

Thanks.

dunstonh

Whats your strategy behind selection apart from a very high risk spread?

One of those funds would make may list. Aberdeen Emerging Markets. However, not at 20%.

I just did a quick test and put those 5 funds in at 20% with no initial charge and retail AMC and from 5th May 2009 to 31st March 2010 the FTSE all share went up 35.19%. That portfolio spread went up 35.75%. For such a high risk spread, it didnt seem to have much in the way upside in a period that saw significant growth. This of course, is a risk with a random selection of funds with no structure.

I did a risk scattergraph of your spread and it scored a risk of 15.5. To put that in context, cash is 1. The FTSE all share is 12.2. Aggressive sector average 10.3 and balanced managed sector average 8.4. So, you can see the degree of extra risk you are taking. So, what is it that you see in those funds and that selection that makes you think the risk is going to pay off in future?

nnop

Dunstonh - Thanks for your quick and detailed responce.

I also thought this was a risky spread, however this is the allocation as the investment idea proposed on the HL website for pensions over 11 years to go.

dunstonh

If HL are saying that on their website then it ought to be taken down.

Risk profiles are a personal thing. There is no such thing as an allocation for someone over 11 years to go. Sure, the longer the time, the more the risk gets diluted but that never changes the fact that a portfolio with a loss potential of 60% is going to be right for someone with a loss tolerance of say 30%.

If an IFA set up a portfolio that suffered a 60% loss when you said you were prepared to accept 30%, would you be happy? That would go to complaint and the FOS would rule against the IFA. Yet it appear on DIY sites you can get away with that sort of thing.

I have just checked the HL site and see the link that gives this info;
http://www.h-l.co.uk/pensions/sipp/investment-ideas-for-your-sipp

I was actually being a bit polite in my earlier post as I thought you had selected the funds and was hoping to lead you to my opinion without actually me saying it. However, now I know its not your choice I can come straight out and say the selection looks basic with no structure and smacks a bit of fashion investing. It may even be guilty of marketing as some of those funds are heavily promoted by HL and its always worth being wary of the financial promotions of product providers. They are not marketing products and funds out of goodwill. They are doing it to sell more of that fund/product.

Investing is about opinion and there is no right answer. The important thing though it to match your risk profile and have a structure and reason behind what you are doing. 25% in four funds looks like random hit and hope. Especially when the second biggest sector is emerging markets at 28.66% (top us uk at 29.02% with Europe in third at 12.06% yet Asia is at 7th at 2.92%)

Charity_Dalek

dunstonh wrote: »

Whats your strategy behind selection apart from a very high risk spread?

I just did a quick test and put those 5 funds in at 20% with no initial charge and retail AMC and from 5th May 2009 to 31st March 2010 the FTSE all share went up 35.19%. That portfolio spread went up 35.75%.

I did a risk scattergraph of your spread and it scored a risk of 15.5. To put that in context, cash is 1. The FTSE all share is 12.2. Aggressive sector average 10.3 and balanced managed sector average 8.4.

dunstonh - The tools that you refer to, are they available to the general public?

Robert

cjgrey

Hi all

As a result of the very helpful information I've found on other threads, I have seen these links, which give ideas of specific funds for different types of portfolios:

http://www.chelseafs.co.uk/documents/Viewpoint25EasyISA.pdf

http://www.bestinvest.co.uk/multiasset/index.aspx

Do people think that these are a more reliable source of ideas to get started than H-L?

Many thanks!

Catherine

dunstonh

Charity_Dalek wrote: »

dunstonh - The tools that you refer to, are they available to the general public?

Robert

They are but you wouldn't find it cost effective. £5000 a year plus VAT.

purch

this is the allocation as the investment idea proposed on the HL website for pensions over 11 years to go.

You need to stay on your toes with HL

They usually change their allocation 'ideas' every 6 months or so....(often when a new fund launches :eek:, or when Dampwit get's a mancrush on one of the Managers)

carolroy52

purch wrote: »

You need to stay on your toes with HL

They usually change their allocation 'ideas' every 6 months or so....(often when a new fund launches :eek:, or when Dampwit get's a mancrush on one of the Managers)

LOL Thanks for the laugh purch
Carol