Is my SIPP diverse enough?

dunstonh

The providers of fluid asset allocation models have mostly dropped their property weighting to 0-2% in most risk profiles.  Your amount is more typical of a year or two back.

How often do you review the asset allocation weightings on your portfolio and adjust to reflect the current position in the cycle?

C_Mababejive

Thanks all,,well as stated, i dont have the time or expertise to pick and manage investments hence my holdings in HSBC FTSE all world and VLS80.  clearly there is overlap to some degree. The CTY were bought some time ago and have been a good divi payer and whilst not being a "bad" investment, theyve dipped recently due to the uk/covid situation. I'm fully expecting them to recover so that im not in a loss situation and whilst thats happening they will hopefully keep turning out divis. 

I read on here that you shouldnt panic and sell at a loss when markets dip ?
Is it really a good strategy to push all my SIPP money into one multi asset fund ? Could it fail? And of course there is the question of, should it be a mutli asset fund based on trackers or a managed one or one that has a degree of management?

The BMO is thankfully only a small holding in cash terms.  A lot of commercial buildings are now converting into apartments or other accomodations.

 Bowlhead talks about the psychology of selling at a loss etc..and this is of course a very valid point.  Should i rush to sell CTY now at a loss when its currently paying divis and has a diversified portfolio albeit uk listed centric? I havent done the maths and it would be an interesting excercise to do with regard to my total return over the holding period. I might have a go at that.

C_Mababejive

dunstonh said:

The providers of fluid asset allocation models have mostly dropped their property weighting to 0-2% in most risk profiles.  Your amount is more typical of a year or two back.

How often do you review the asset allocation weightings on your portfolio and adjust to reflect the current position in the cycle?

Thats it you see Dunstoh,, i just dont have the time or expertise to do fine tuning like this..

AnotherJoe

C_Mababejive said:

Thanks all,,well as stated, i dont have the time or expertise to pick and manage investments hence my holdings in HSBC FTSE all world and VLS80.  clearly there is overlap to some degree. The CTY were bought some time ago and have been a good divi payer and whilst not being a "bad" investment, theyve dipped recently due to the uk/covid situation. I'm fully expecting them to recover so that im not in a loss situation and whilst thats happening they will hopefully keep turning out divis. 

I read on here that you shouldnt panic and sell at a loss when markets dip ?
Is it really a good strategy to push all my SIPP money into one multi asset fund ? Could it fail? And of course there is the question of, should it be a mutli asset fund based on trackers or a managed one or one that has a degree of management?

The BMO is thankfully only a small holding in cash terms.  A lot of commercial buildings are now converting into apartments or other accomodations.

 Bowlhead talks about the psychology of selling at a loss etc..and this is of course a very valid point.  Should i rush to sell CTY now at a loss when its currently paying divis and has a diversified portfolio albeit uk listed centric? I havent done the maths and it would be an interesting excercise to do with regard to my total return over the holding period. I might have a go at that.

youve mixed up panic selling into cash, and changing investments rationally (rather than in a panic).

There is panic selling because you've made a loss, vs rationally deciding that in the future investment X will perform better than investment Y. At that point, better to sell Y and buy X.

If you believe that CTY will recover then by all means hold.  Im just not a fan on income investments

You dont need loads of time to spend rebalancing either, one hour once a year would be sufficient.

tigerspill

AnotherJoe said:

I would switch the VLS80* into HSBC, dump the BMO**, sell the CTY (why on earth does it matter its running a loss presently????)  and switch whatever % of the cash you are comfortable with into HSBC.  

A good example of BH's explanation above about selling at a loss, rather than hang on and wait for it to get back where i bought it, i sold BYD a year ago at 50% loss, then bought Tesla which has gone up 3x since then.

* because of the over representation of oil and finance in it

**IMO property just has too many issues post covid

Just wondering why you prefer the HSBC to the VLS?

NedS

tigerspill said:

AnotherJoe said:

I would switch the VLS80* into HSBC, dump the BMO**, sell the CTY (why on earth does it matter its running a loss presently????)  and switch whatever % of the cash you are comfortable with into HSBC.  

A good example of BH's explanation above about selling at a loss, rather than hang on and wait for it to get back where i bought it, i sold BYD a year ago at 50% loss, then bought Tesla which has gone up 3x since then.

* because of the over representation of oil and finance in it

**IMO property just has too many issues post covid

Just wondering why you prefer the HSBC to the VLS?

Not wanting to answer for Joe, but I'm guessing it's because the Vanguard VLS funds are overweight on UK equities.

C_Mababejive

So if i dumped my entire SIPP fortune into the HSBC FTSE all world index acc fund..is there anything else i should add? There is no bond/gilt content and its 100% equity tracker. 

AnotherJoe

You could buy a vanguard bond fund. Or there are similar funds to VLS that havea % of bonds but not the artificial U.K. weighting. 

LobsterMemory

dunstonh said:

How often do you review the asset allocation weightings on your portfolio and adjust to reflect the current position in the cycle?

Potentially kodnapping the topic..I review 5-yearly based on age rather than the position in the cycle

What would a professional recommend?