SIPP Makeover

peterg1965

I am giving my SIPP a bit of a 'springclean', over time my fund spread and strategy have begun to loose their way. I have an eclectic mix now, which is very volatile and contains direct and indirect equities. The fund value to approaching £100K so I have sat down, researched and come up with this strategy, hopefully to have a slightly more smooth ride in the future:

Fixed Interest (15%)

Total/Absolute Return (10%)

Managed Equities (70%) split into the following sectors:
- UK 30%
- North America 20%
- Europe 20%
- Emerging Markets 8%
- Specialist 8%
- Asia/Pacific 14%

Property (5%)

I am looking at about 16 or so different funds, coming down from about 26 OEICS and 4 Share holdings.

Can I ask the seasoned investors how this looks, what risk level does this strategy scream at you, is it a 'balanced' portfolio for a ten year run into crystalisation. I am in the process of selecting the funds for each sector, some of which I will already hold in my portfolio.

Linton

I like the way you are looking at the strategy first, without worrying about which particular investments you should be buying. At the top level it looks medium risk to me with a good spread. Though obviously it depends on what type of investments you hold in each geographic region/sector.

However whether it really will provide a smoother ride in the future its impossible to say. Once upon a time you could rely on different equity sectors to even out the wilder fluctuations. Now however we have a global economy. So for the past few years markets have all been fluctuating fairly wildly together.

peterg1965

Thanks, up until now I have been 'chasing the market' so it could be the wrong time to be selling my current 'adventurous' and high risk portfolio. With the markets just beginning to edge slowly upwards (will it last?) I may be best to see where the next few months take us. I currently have no fixed interest and no absolute return, and am 90% in indirect equities.