Monthly income

crystal_pixie_2

Find this thread really useful.

As someone quite new to investing I have been taking my time to get my portfolio together for my SIPP - looking at a minimum of 20 years with a starting point of £25k with £400 pm being drip fed.

I have come up with the following portfolio - but with all the drops in the FTSE I wonder if I have done the right thing:

Artemis Strategic assets Accumulation
CF Woodford Equity Income
First State Asia Pacific leaders
Newton Real Return
Old Mutual UK Alpha
Rolls-Royce holdings
Vanguard UK inflation linked Gilt index

I have tried to pick some riskier funds based on timescale and because I don't intend for this pot to be my main income - but I would appreciate any thoughts/ideas!

mike88

Not a lot of point in holding the Vanguard and Newton funds at this stage in your investment cycle. The general idea is to invest in such funds as you approach retirement. With a 20 year saving period you would be better off investing in growth funds for the first 15 years and then move to conservative holdings approximately 5 years from retirement.

Ryan_Futuristics

JohnRo wrote: »

I've taken the decision to make this portfolio IT only, reason being that IT long term should have an edge over open ended funds with managers having the ability to do what they see as best for the trust in a way fund managers can't, revenue reserves and gearing and make key decisions that maintain stability and a dividend through difficult times. Also the transparency is a big draw for me as it provides at least some limited choices over the buy and sell prices in a way that isn't possible with OEICs.

The downside is the possibility of higher volatility but I'm not fretting about that and fully expect some scary dips and turns along the way, the focus is on building a sustainable income stream, with the expectation that the valuation will eventually take care of itself over a substantial number of years.

Also the platform charge is currently free (effectively) with CSD for both ISA and GIA if only holding stocks and shares as opposed to funds, when making 6 trades each 6 months which fits well with the planned rebalancing frequency and account balance of this portfolio.

That said iWeb would be even cheaper but the features and service available from CSD are well worth the premium to me at this stage.

I do have some individual shares with iWeb that aren't maintained, beyond auto dividend reinvestment.

Absolutely, I've always felt ITs are the best bet for long-term investing - which their track records certainly tend to support

I use OEICs a lot at the moment because I pursue a value strategy which requires quite frequent rebalancing and purchases, and them falling out of favour in recent years has left some of them very cheap to hold and effectively free to trade

Murray International's one of my core holdings though - bit of a rough patch in recent times, but long term very few funds have had that ability to consistently grow and protect capital and still offer index beating returns

galaxybuilders

PIMCO Income Strategy may be an attractive option for income-oriented investors who seek a bond investment that offers a relatively high and consistent income stream with an emphasis on high quality and diversification. The strategy seeks to maximize current income as its primary objective while still emphasizing total return.

It potentially can satisfy the demands of an income-oriented investor who wants to invest in a diversified portfolio of multi-sector fixed-income portfolio. The strategy combines the PIMCO total-return active management style with techniques that seek to maximize distributable income.

rog4747

crystal_pixie wrote: »

Find this thread really useful.

As someone quite new to investing I have been taking my time to get my portfolio together for my SIPP - looking at a minimum of 20 years with a starting point of £25k with £400 pm being drip fed.

I have come up with the following portfolio - but with all the drops in the FTSE I wonder if I have done the right thing:

Artemis Strategic assets Accumulation
CF Woodford Equity Income
First State Asia Pacific leaders
Newton Real Return
Old Mutual UK Alpha
Rolls-Royce holdings
Vanguard UK inflation linked Gilt index

I have tried to pick some riskier funds based on timescale and because I don't intend for this pot to be my main income - but I would appreciate any thoughts/ideas!

How often do you track your holdings? For me this makes quite a difference. You are obviously looking very long term so I wouldn't be too concerned about the current dip in the FTSE100. No doubt your choices will prove to be sound over the longer term. There is also something out there which is growing faster but have faith in your research.

JohnRo

TCA wrote: »

I'm resisting commodities having probably stuck more into BlackRock World Mining than I should have (before it fell to bits). But I keep looking at BlackRock Commodities Income and eyeing it as a double play on energy and commodities. It lost about 7% yesterday so became interesting again.

I'm thinking I should buy some European stuff as I reckon it could get a boost if Draghi signals some QE.

And some long-time lurkers on my watchlist are looking good pricewise. Lowland Investment Trust being one. With 10% holdings in oil & gas and a bit of Rio Tinto, it might dissuade me from a bigger purchase in those sectors.

T, reply here seems more appropriate, I'm thinking of dumping LWI and reallocating that slice of the income pie to EDIN. I just don't see LWI doing anything EDIN isn't doing better?

I'm looking forward to averaging down BRWM so expect a quite spectular rally in the SP a day or two before that event! That probably won't be this year depending how other trusts perform. I'll be adding BRCI later this year at some point after April, also PEW if it votes to continue which should be more than enough exposure to comodities.

I've recently looked at BEE as well which you've mentioned previously, that looks interesting as a decent yield play and some possibility of capital growth long term.

I recently boosted EAT (which then fell 3% within two days of said purchase...) and want something else European to accompany it, in keeping with the income theme, likewise something American to go with NAIT, which has finally managed to recover some of the dismal performance it had through the entire US rally. So much for rising tides..

I've been looking at ETF trackers to perhaps do a little market timing with and try to capture some of the spikes but the yields just aren't suitable if I end up having to hold for extended periods and it'd probably require me using iWeb since the dealing costs on the amounts planned would be prohibitive on short term trading with CSD.

Last scheduled rebalance/top up this tax year will be JEMI in March. Dividend income is good for Jan & Feb so that'll go towards boosting the scheduled new money top up by about 90%

TCA

JohnRo wrote: »

I'm thinking of dumping LWI and reallocating that slice of the income pie to EDIN. I just don't see LWI doing anything EDIN isn't doing better?

I've recently looked at BEE as well which you've mentioned previously, that looks interesting as a decent yield play and some possibility of capital growth long term.

I recently boosted EAT (which then fell 3% within two days of said purchase...) and want something else European to accompany it

From my untrained eye, LWI has a different spread of sectors and invests across the market-cap spectrum. I already hold EDIN but see that as leaning more towards defensive large-cap health and tobacco companies. LWI also has a good record of increasing dividends, although admittedly it's yield is pretty average to begin with.

I'm still following BEE with interest but still a bit nervous of the whole Russian thing.

And still kicking myself for not buying EAT in October when it was about £8 a share.

JohnRo

From my untrained eye, LWI has a different spread of sectors and invests across the market-cap spectrum.

I'll just rely on MRC to provide that spread going forward.

...still kicking myself for not buying EAT in October

Yes, with hindsight I should have made this last EAT top up then as well, such is life. I was sorely tempted at the time and decided to stick with the schedule. I'm working on the assumption scheduled purchases will all sort themselves out over a long enough time frame, the odd missed 5-10% here and there won't make a vast difference over the duration as long as it doesn't start to become a regular pattern of missed opportunities.

That said I might bring forward the next few scheduled purchases in 2015/16 if there is going to be volatility like we've had the last few months, it seems daft ignoring the possibility of an opportunistic purchase that's going to be made anyway, even if it turns out not to be once taken.

Lokolo

Sorry I don't want to derail - but - how have you calculated total return? Do you store your dividends elsewhere?

I have an Income Portfolio myself, and have a similar layout to yours apart from the total return, as I have not recorded the cash paid out. Is this what you have done?

mike88

Are there any plans to reduce the number of holdings?