Investment trusts for SIPP choice from 10?

philng

Looking to set up a SIPP next week from redundancy proceeds with intention of drawing down between age 55 which is 3 1/2 years away and 60 when db pension kicks in.
Considering using 5 investment trusts and looking for overall income 3% plus.
These are my possible choices :
U.K.
City of London (already have in isa)
Edinburgh
Mercantile
Lowland
Troy

World
Murray international
Bankers
Foreign and colonial
Law debenture

Europe
Jpm Europe income

Any views or alternative options would be appreciated?

MacMickster

My personal opinion, with such a short time before wanting to draw on your SIPP, would be to leave the funds in cash for a short while until any post-referendum reaction by the markets has settled down before putting your retirement income at risk in what may be a volatile period.

Thrugelmir

For UK I'd go a little more specialised otherwise you'll duplicate holdings (FTSE100) with the Global trusts.

Acorn Investment Trust would add diversification.

TR Property would likewise add another sector.

philng

Thanks for the replies.
My personal opinion is uk will vote to remain in Eu which would be followed by a quick positive uplift in stock market hence desire to get in before I miss the boat maybe.

Thrugelmir

philng wrote: »

Thanks for the replies.
My personal opinion is uk will vote to remain in Eu which would be followed by a quick positive uplift in stock market hence desire to get in before I miss the boat maybe.

Blue Chip UK stocks are international. You'll have duplication of stocks across the trusts, i.e. Shell, BP and HSBC for example. That was the point I was making.

You need to compare holdings of the trusts.

bigadaj

Thrugelmir wrote: »

Blue Chip UK stocks are international. You'll have duplication of stocks across the trusts, i.e. Shell, BP and HSBC for example. That was the point I was making.

You need to compare holdings of the trusts.

Fair point, there's also the issue that the largest multi nationals are also listed on more than one stockmarket, they could have uk and us, European or other listings.

philng

Ok I have decided to go with the following each 20% split & I believe gives some variation:

Edinburgh
Mercantile
Murray International
Bankers
TR Property

I do have other investments directly in shares & other ITs in my ISA.

bigfreddiel

To avoid overlapping the companies that ITs invest in it would be nice to find a tool that could take a list of ITs and show the top ten companies that each IT is invested in.

You can do this manually if you have a short list and a spreadsheet, bit time consuming so would be nice to automate the process.

I guess you could use the 'x-Ray' feature you find on some portfolio managers.

Another tool I would like is to be able to list ITs that invest in specific companies, for example show me all ITs that hav BP in its top ten.

Cheers fj

Thrugelmir

bigfreddiel wrote: »

Another tool I would like is to be able to list ITs that invest in specific companies, for example show me all ITs that hav BP in its top ten.

Cheers fj

Bigger the trust in asset value the more likely it is to hold such stocks. As there's only so many companies that it's possible to hold a decent holding in. Likewise to generate dividend income the available stocks are limited. Oil companies now represent a high % of dividends paid out out of FTSE 100 companies.

Looking at the list of dividend cuts already. Standard Chartered, Tesco, Roll Royce, Centrica, mining sticks. How sustainable are the oil majors ? With Shell requiring $60 a barrel to maintain cash flow. Likewise HSBC may well cut at some point in the future. Uncertain times.