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Inherited portfolio-too much duplication?

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.
«13456

Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    What's the size in value of the individual holdings? With 16 individual holdings some must be fairly small.
  • 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.
  • AlanP_2
    AlanP_2 Posts: 3,539 Forumite
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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.

    Don't they lose their ISA wrapper though upon death of original owner?
  • ColdIron
    ColdIron Posts: 10,019 Forumite
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    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-isa
  • p00hsticks
    p00hsticks Posts: 14,616 Forumite
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    AlanP wrote: »
    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/
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    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.
  • 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.
  • eskbanker
    eskbanker Posts: 38,022 Forumite
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    AlanP wrote: »
    Don't they lose their ISA wrapper though upon death of original owner?
    ColdIron wrote: »
    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-isa
    p00hsticks wrote: »
    AlanP wrote: »
    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/
    OP makes various references to 'we'/'our' as well as 'I', so this would suggest that the deceased ISA holder wasn't their spouse or partner, and therefore the above provision doesn't apply here....
  • This is correct Eskbanker,my father.
    Thank you Thrugelmir,that is the line I was thinking of too.
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