Investment changes moving from occupational to SIPP

gm0

Novice pension planner considering setting up for DIY

Question about diversification. What portfolio changes I should be researching and looking into as I approach the switch from occupational scheme fund holding to setting up one or more SIPPs to draw benefits from the DC fund.

Fairly comfortable with a global equities heavy, low fee drag, indexation approach - perhaps leavened at the 10-20% level with other investments (commodity, property, more speculative/emerging markets.

Currently invested 100% equities
Will review this for retirement phase but I am fairly sold on the logic of remaining invested over up to 40 years and unconvinced by lifestyling/bonds=age. Still thinking 80%+ and flexible drawdown methods (McClung book etc).

Switched in 2018 into a Global Ethical Equities fund (from UK AllShare indexer). Passive. FTSE4Good Global Developed indexation. Very low cost. Felt it was viable for a short term flip away from UK heavy exposure - but it isn't the long term solution on its own.

LGIM Fund profile:


Geography - 51% US 25% Europe ex UK 9% UK 8% Japan 3% ANZ 1% Asia (dev) Other (OK)
23% Fin, 20% tech 13 health 11 consumer 10 industrial 8 consumer services 4 oil/gas 4 telco, other


75% in 20bn plus cap
50% in 50bn plus
Little invested in capitalisations below 5bn

This last aspect seems less than ideal and I guess should guide me when I look for the funds to switch into. Also no alternative assets (property, commodities), and nothing for the more speculative element).

Interested in input on two aspects. Am I missing some horrible concentration of risk with my temporary solution beyond what is described above. Thoughts from others experience further along the track with global equities + portfolio planning.

Thank you

gm0

Still hope to provoke pointers to things I need to learn about. Here are the options I am evaluating for funds in the existing occupational scheme (assuming they remain there subsidised and protected for a time). Move them into a SIPP based version per original post. I have understood that the move brings: Less protection. Slightly higher fees. A whole lot more fund choices. Can buy bond ladders to hold to maturity as a cash substitute should I want to. More ways to implement drawdown.

Some of these should be easy for me to translate to a short list of Vanguard and Fidelity or similar funds. Here are the existing ways I can construct my global equities portfolio. Passives and Active choices.

I have 5 year performance data access to unit prices and fee drag so can do that compare. It is the logical structure - 3 ways to do what is broadly a "similar" thing but maybe not really that is a bit puzzling and what that means if anything for diversification / a longer term "in retirement" view.

Passives

A) A tracker fund to FTSE4Good Developed (LGIM)

A Global equity tracker made of:

45% MSCI World Adaptive Capped 2x Index
45% FTSE Developed World Index - GBP Hgd
10% FTSE Emerging Index

C) A geography weighted portfolio UK + Overseas mix made up of

Composite of 50% FTSE Developed (ex UK) Index and
50% FTSE Developed (ex UK) Index - GBP Hedged
Mixed with FTSE All Share Index tracker or a UK active option
Assuming market size weights for the mix to be broadly the same as A,B

Is there an obvious way to tell a,b,c,d apart - advantage/disadvantage beyond "ethical" feel good with A and the appearance of some currency hedging in places for B,C ?

Active option

D) A global actively managed fund made up of:

BlackRock DC Diversified Growth
LGIM Global Equity Market Weights (30:70) Index Fund - 75% GBP Currency Hedged
Schroder Intermediated Diversified Growth

For bonds:

An index linked gilts fund mostly 2030-2050 75% UK
A fixed gilts and corporate bonds fund mostly (66%) UK gilts

zagfles

You might be better posting on the Savings & Investments board as they discuss investment strategies a lot more over there.