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Inherited portfolio-too much duplication?

dutchism1958
Posts: 206 Forumite


Morning,
I have just inherited a £200K portfolio.
The inherited portfolio is well diversified & has multiples of ITs and Bonds all in an ISA.
I intend to transfer those holdings across which we already have in our own portfolios. We are financially secure and looking to generate income but with some defensive IT's and bonds.50/50.
I am just retired.
My question covers the duplication.
There are 4 global ITs-Witan,Bankers,Murray International & Fundsmith. I have checked on Trustnet & Morningstar and whilst Fundsmith has more US concentration they are all similar?.
Fundsmith & Murray seem sufficient?.
There are 3 Far East holdings:Henderson Far East inc, JPM Global EM inc and Baillie Gifford Japan. Henderson seems sufficient?.
Finally there are 9 bonds.
NCYF & Fidelity Money Builder-for the UK.
Henderson Diversified Income-Europe.
Then globally
IP Enhanced Income,
Ruffer,
Artemis Monthly Dist Strat.Bond
M&G Optimal Income A inc,
Jupiter Strat Bond,
Artemis Mthly Dist inst.inc
The global 6 seem sufficient for income and defensive.
Sorry for the long message,any opinions on thinning out these funds are appreciated.
I have just inherited a £200K portfolio.
The inherited portfolio is well diversified & has multiples of ITs and Bonds all in an ISA.
I intend to transfer those holdings across which we already have in our own portfolios. We are financially secure and looking to generate income but with some defensive IT's and bonds.50/50.
I am just retired.
My question covers the duplication.
There are 4 global ITs-Witan,Bankers,Murray International & Fundsmith. I have checked on Trustnet & Morningstar and whilst Fundsmith has more US concentration they are all similar?.
Fundsmith & Murray seem sufficient?.
There are 3 Far East holdings:Henderson Far East inc, JPM Global EM inc and Baillie Gifford Japan. Henderson seems sufficient?.
Finally there are 9 bonds.
NCYF & Fidelity Money Builder-for the UK.
Henderson Diversified Income-Europe.
Then globally
IP Enhanced Income,
Ruffer,
Artemis Monthly Dist Strat.Bond
M&G Optimal Income A inc,
Jupiter Strat Bond,
Artemis Mthly Dist inst.inc
The global 6 seem sufficient for income and defensive.
Sorry for the long message,any opinions on thinning out these funds are appreciated.
0
Comments
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There will be costs in thinning them out. What advantages do you expect to get that will outweigh the costs?
In your shoes I might start by looking at tax efficiency. Are you both using your dividend allowances? Savings allowances? Personal allowances? CGT allowances?
I suppose that you'd like slowly to transfer that wealth into ISAs (and indeed pensions).
Reorganising the means of holding the assets would be a natural opportunity to reorganise the holdings themselves.Free the dunston one next time too.0 -
What's the size in value of the individual holdings? With 16 individual holdings some must be fairly small.0
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Thanks Kidmugsy & Thrugelmir,
The average is £8K across the 16holdings.Far East is £3K each,bonds £7K each and Global IT/UTs £12-£15 each.
The advantages of thinning will hopefully make it easier to maintain.
The whole portfolio is already in ISA's.
It's a case of maybe having 3-4 bonds rather than 9,one Far East rather than 3 and 2 global It/UTs rather than 4.
We are using all of our allowances.
Thanks.0 -
dutchism1958 wrote: »Thanks Kidmugsy & Thrugelmir,
The average is £8K across the 16holdings.Far East is £3K each,bonds £7K each and Global IT/UTs £12-£15 each.
The advantages of thinning will hopefully make it easier to maintain.
The whole portfolio is already in ISA's.
It's a case of maybe having 3-4 bonds rather than 9,one Far East rather than 3 and 2 global It/UTs rather than 4.
We are using all of our allowances.
Thanks.
Don't they lose their ISA wrapper though upon death of original owner?0 -
Since April 2015 an ISA can be passed on to a surviving spouse or civil partner but there are details
http://www.which.co.uk/money/savings-and-isas/isas/guides/cash-isas/can-you-inherit-an-isa0 -
Don't they lose their ISA wrapper though upon death of original owner?
Yes. I believe you are correct.
Legislation was bought in recently to allow a spouse to effectively inherit their partners ISA, but my understanding is that this is achieved by giving the survivor a one-off additional ISA allowance to the value of the deceased's ISA pot. I'm not sure if shares can be transferred directly over in these circumstances.
https://moneyfacts.co.uk/guides/isas/inheritance-isas--the-new-rules/0 -
dutchism1958 wrote: »The average is £8K across the 16holdings.Far East is £3K each,bonds £7K each and Global IT/UTs £12-£15 each.
Depending upon what else you hold already. I'd be looking to consolidate. A £3k holding isn't going to make any significant contribution to the overall portfolio even it were to rise by 10%. With so many holdings in essence what you've got is an expensive tracker fund.0 -
They can still inherit the assets within the ISA as cash or shares but the interest on the ISA becomes taxable at the point of death.0
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Don't they lose their ISA wrapper though upon death of original owner?Since April 2015 an ISA can be passed on to a surviving spouse or civil partner but there are details
http://www.which.co.uk/money/savings-and-isas/isas/guides/cash-isas/can-you-inherit-an-isap00hsticks wrote: »Don't they lose their ISA wrapper though upon death of original owner?
Legislation was bought in recently to allow a spouse to effectively inherit their partners ISA, but my understanding is that this is achieved by giving the survivor a one-off additional ISA allowance to the value of the deceased's ISA pot. I'm not sure if shares can be transferred directly over in these circumstances.
https://moneyfacts.co.uk/guides/isas/inheritance-isas--the-new-rules/0 -
This is correct Eskbanker,my father.
Thank you Thrugelmir,that is the line I was thinking of too.0
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