SIPP - My Current Portfolio - Variety of Investments - Opinions/Comments ?

ams25

Familiar territory! Like you (and many) I suspect, while I was working my portfolio built up more randomly than I would like to admit, with a mix of funds (many of which did extremely well) and individual stocks (many of which did not) with little serious thought to asset allocation, risk etc. I was pretty much all in equities and didn't mind adding something that looked interesting, ending up with a large, complex and unstrategic portfolio. But as long as the overall number was going in the right direction what did i care!

Since I stopped working and have invested much more time (but less money!) in managing my portfolio I have come to realize the error of my sloppy ways. Yes, I did ok, but I could definitely have done better. Maybe this is where an IFA would have added value to a DIY investor like myself.

Of late, I have been simplifying my portfolio in line with a clear asset allocation - reducing individual stocks to the minimum (some remain but they will go) and working on the principle of core funds in passive investments with some active funds where they might add extra value/performance. I manage the portfolio across SIPP, ISA and taxable as one portfolio.

looking at the OP portfolio, its hard to see the strategy being deployed (there may be one) and with 16 funds there are too many. I'd suggest take a blank sheet, work out the desired asset allocation (or if you have one, compare with what you have here) and then reduce down to a core holding of passive funds which meet that, with maybe a few active funds to add some potential outperformance. I would aim to avoid anything that is less than 5% of the portfolio and ditch the small stock holdings (unless you enjoy chosing stocks and losing money! )

BigBlueSky

ams25 wrote: »

Of late, I have been simplifying my portfolio in line with a clear asset allocation - reducing individual stocks to the minimum (some remain but they will go) and working on the principle of core funds in passive investments with some active funds where they might add extra value/performance. I manage the portfolio across SIPP, ISA and taxable as one portfolio.

I'd suggest take a blank sheet, work out the desired asset allocation (or if you have one, compare with what you have here) and then reduce down to a core holding of passive funds which meet that, with maybe a few active funds to add some potential outperformance.

Thank you - Really appreciated.

I get confused with passive and active - is passive like the trackers and active where the actual breakdown of the fund changes as the fund manager sees fit ?

LHW99

II can link your portfolio to the Morningstar x-ray (RHS somewhere when you're logged in I think) and generate a report that will indicate the overall geographic spread and areas of overlap (plus other stuff). Worth looking at.
Also if you are happy to take the rearrangement slowly, you get quarterly credits to use against trading costs.

BigBlueSky

LHW99 wrote: »

II can link your portfolio to the Morningstar x-ray (RHS somewhere when you're logged in I think) and generate a report that will indicate the overall geographic spread and areas of overlap (plus other stuff). Worth looking at.
Also if you are happy to take the rearrangement slowly, you get quarterly credits to use against trading costs.

Thank you - That sounds good. I think that is the part I have been looking at it - They call it 'X-Ray'.

I have been losing trading credits as I haven't been using them so I have no problem in doing this slowly where needed.

AlanP_2

BigBlueSky wrote: »

Thank you - Really appreciated.

I get confused with passive and active - is passive like the trackers and active where the actual breakdown of the fund changes as the fund manager sees fit ?

Essentially yes.

bostonerimus

...so do this. tell us what asset allocation you want. Then sell/redistribute your funds to meet that allocation and come back to us with your portfolio. Being a broad index investor there's very few of your funds that I'd want to own, but you need to come up with your own solid reasons for each fund that you own and the sooner the better.

BigBlueSky

bostonerimus wrote: »

...so do this. tell us what asset allocation you want. Then sell/redistribute your funds to meet that allocation and come back to us with your portfolio. Being a broad index investor there's very few of your funds that I'd want to own, but you need to come up with your own solid reasons for each fund that you own and the sooner the better.

Thanks - That is the tricky part and where I have been struggling. Trying to decide what asset allocation I want. I am investing for the longer term over 15 years, so are happy to be more adventurous.

Can anyone suggest any guides that may help me decide on this ?

Lokolo

There are quite a few sites that have model portfolios

https://www.bestinvest.co.uk/help/asset-allocation

Or you could just look at the asset allocation of a global fund and pick a similar sort of asset allocation.

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/v/vanguard-lifestrategy-80-equity-accumulation/fund-analysis/geographical-analysis

Example of the Vanguard Lifestyle 80. This is 80% equities and 20% bonds.

BigBlueSky

Lokolo wrote: »

There are quite a few sites that have model portfolios

Or you could just look at the asset allocation of a global fund and pick a similar sort of asset allocation.

Example of the Vanguard Lifestyle 80. This is 80% equities and 20% bonds.

Thank you - Will take a look and do some more research. I was actually looking at the Vanguard Lifestyle products only a few days ago.

Alexland

If on II then you can get cheaper than VLS - consider a mix of HSBC FTSE All World (0.16%) and Vanguard Global Bond Index Hedged (0.15%) funds rebalancing using trade credits.