SIPP Advice

splodge2001

I've been managing a £30,000 pension fund on behalf of my husband since February this year. I did my own research and mostly picked funds with 4 holdings in single shares. Overall the SIPP hasn't performed very well (total gain is 2.07%), mainly due to losing 80% of a £2k investment in Cannabis stocks. I have bought and sold funds over the course of the year so the gains/losses for each fund/share are not necessarily from the start of the SIPP.

I would like to review my holdings and canvass opinion. Consolidate? Tech/Energy funds?

Here are the holdings -
ASI Financial Equity - £1024.74 (+2.72%: £27.18)
ACB Aurora Cannabis -£192.68 (-75.77%; £192.68)
Baillie Gifford Managed - £3165.27 (11.72%; £332.08)
BKG Berkeley Group Holdings - £641.03 (20.58%; £109.4)
Fundsmith Equity - £7467.30 (13.55%; £891.29)
TGOD Green Organic Dutchman £221.69 (-82.59%; -£1051.55)
JLEN Environment Assets £1072.45 (4.53%; £46.47)
Jupiter Asian Income £1637.26 (9.45%; £141.33)
Legg Mason IF RARE £1061.93 (7.28%; £72.02)
Lindsell Train Global £7734.91 (5.49%; £402.66)
Lindsell Train Japanese £1426.13 (9.70%; £126.13)
MNG plc £137.69 (-.41%; -£0.56)
Malborough Nano Cap £1726.56 (4.68%; £77.21)
PRU Prudential PLC £834.91 (-1.69%; £14.36)
Pyrford Global Total Return £4182.15 (3.64%; £146.93)
BBOX £1219.07 (-1.45%; -£17.97)

NedS

What are your goals? How old is your husband and when does he plan to retire? What is your appetite and capacity for risk?


It's not really possible to offer any advice without knowing this.

splodge2001

So sorry, yes! He is 54. We run a business together. There is no particular goal to retire but we have to be mindful that there might come a time where working is not possible, lets say 75. He also has a fund with Aviva worth £126,000 (mostly contracted out Serps). So let's say a 20yr time frame and a moderate appetite for risk. Feeling burnt my cannabis stocks so would rather stick to funds.

MaxiRobriguez

That's a lot of funds for a relatively small pot...

How did you come to the decisions you initially made?

splodge2001

I did some research, looking at funds the seemed strong over time and mostly avoiding the UK. I also wanted house building (Berkeley Homes) for post Brexit, an environmental fund (JLEN) and an Infrastructure fund (Legg Mason). Cannabis stocks for the potential huge growth in the sector.

bigadaj

Seems a lot of effort for a small pot with a longish time frame.

I'd have said the default would be a global equity tracker and then justify good reasons for tilts but on £30k then any diversification will have limited effect because of the small sums.

I would guess a global equity tracker would have returned 10% or more in the time period you've stated so some serious under performance and what appears to be a much higher risk level.

Who is teh sipp held with as dealing costs could have a huge negative effect on returns.

Bravepants

A single multi-asset index fund would be more appropriate, something like "HSBC Global Strategy Dynamic" given the longish timeframe, or "HSBC Global Strategy Balanced" if less risk is the goal. Higher risk -> higher chance of growth over the long term -> higher volatility in the short term.



Also check out the Vanguard Life Strategy funds.



I have 75% of my ISA in VLS 60, and 25% in FTSE Global All Cap Index funds and I'm currently showing over 18% "growth" over the last 12 months, but 12 months is too short a time scale for that to be a long term reflection.

Thrugelmir

An overly complex portfolio for a relatively small sum. First rule of investing is don't lose capital. Second rule is don't forget rule no1.

Simplify the portfolio and reduce the number of holdings.

splodge2001

It's with HL

[Deleted User]

1. Simplify. You need one fund.
2. Avoid speculative purchases (cannabis)
3. Diversify rather than concentrate. Diversification is the “free lunch” in investment. You are reducing your risk without lowering expected returns.
4. No stock or tiny fund picking, Its a gamble and you would be playing against professionals.
5. Manage AVIVA and SIPP pots as a single portfolio
6. Write out an investment policy statement for yourselves.
7. Stick to your IPS. Do not trade.

Your best investment will be something like VLS 60 or the HSBC version. Just one fund. Maximum simplicity and you own the world. Removes temptation to mess with it like you’ve been doing. Also low costs.

kinger101

My advice would be to stick the entire amount in a global index (e.g. Fidelity World Index) or a mixed-asset fund (e.g. Vanguard Life Strategy) carrying a stocks/bond ratio suited to your husband's attitude to risk.

The whole point of these funds is they provide a relatively safe and diversified home for your money that doesn't require in-depth knowledge of investing.

The cannabis stocks were the emperor's new clothes. Supply cannot exceed demand.

https://business.financialpost.com/cannabis/too-much-weed-canadian-cannabis-producers-are-sitting-on-a-mountain-of-inventory-and-its-making-some-industry-watchers-nervous