SIPP Portfolio Appraisal

MJC1983

Hi Guys, it's been a few years but thanks to everyone's input I have managed to increase my SIPP to £176k and now have £30k in my workplace pension. 

SIPP is currently allocated as follows:

BlackRock MyMap 6 Class D	79%
Fundsmith Equity Class I	10.5%
Polar Capital Polar Capital Technology Trust Plc Ord GBP0.025	5.2%
Smithson Investment Trust Plc Smithson Investment Trust Plc Ord GBP	1.5%
Cash	1.4%
Baillie Gifford & Co Limited Scottish Mortgage Investment Trust Plc Ord GBP0.05	1.4%
Baillie Gifford Global Discovery Fund Class B	0.7%

Would now been the time to seek advice from an IFA or should I simply carry on with what I am doing which is sticking as much of my salary as I can into my SIPP for the next few years at least? Any comments on the above allocations are most welcome. As ever, everyone's input is most appreciated. 

incus432

You still hold quite a few funds - is there a reason for these in particular? 

Do you know what charges you are paying for these? In particular your main holding (Blackrock My Map 6 class D).

Who is your SIPP with and how much do they charge you?

If you are happy with the performance (benchmark it against an all world index) I cant see any real need for IFA advice.

Bostonerimus1

incus432 said:

You still hold quite a few funds - is there a reason for these in particular? 

Do you know what charges you are paying for these? In particular your main holding (Blackrock My Map 6 class D).

Who is your SIPP with and how much do they charge you?

If you are happy with the performance (benchmark it against an all world index) I cant see any real need for IFA advice.

That's pretty much what I was going to say...I can only add that the op might think about selling all the holdings less than 10% as they aren't really doing much. Also it might be a good time to take another look at asset allocation and risk tolerance as the portfolio is almost all equities.

MJC1983

Thanks for the comments, the fees for Black Rock My Map 6 are low at 0.17%, will probably transfer the Fundsmith to Blackrock as well as underperformed against the market with high fees for a couple of years.

Currently have everything with HL as the App has a good UI, but would not be averse to change. Are there providers that are considerably cheaper?

incus432

MJC1983 said:

Thanks for the comments, the fees for Black Rock My Map 6 are low at 0.17%, will probably transfer the Fundsmith to Blackrock as well as underperformed against the market with high fees for a couple of years.

Currently have everything with HL as the App has a good UI, but would not be averse to change. Are there providers that are considerably cheaper?

Many platforms - including HL - have much lower fees if you only hold ETFs/shares/ITs/gilts rather than OEIC funds.  HL caps charges at £200 pa for a SIPP in this case compared with an eye-watering 0.45% on OEIC funds (I calculate you may be paying c £790 pa to HL on your current holdings -on top of the fund fees of course).  

Other platforms have even lower caps on charges for ETFs/shares holdings (AJ Bell is 120pa, Fidelity is £90 pa). Worth noting Fidelity have a cashback offer for transfers in until 1 April (£1000 for your pot.)

Both of these have lower OEIC charges too (0.25% and 0.35% respectively) if you dont want to switch to ETFs. But many of us have done just that in recent years to save on costs. (Note you'd need to check you could hold those same funds in any new platform if you want to hold on to them)

kinger101

Still looks like you're picking based on historic performance.

I'd go with a single low cost global ETF as suggested above.  

dunstonh

Thanks for the comments, the fees for Black Rock My Map 6 are low at 0.17%, will probably transfer the Fundsmith to Blackrock as well as underperformed against the market with high fees for a couple of years.

A couple of years is nothing.  US equity, in particular tech, has been the main driver in this cycle and was the worst in the previous cycle.   Over the first 10 year of this millennium, US equity was down.        Past performance in short term periods is largely pointless.   

Currently have everything with HL as the App has a good UI, but would not be averse to change. Are there providers that are considerably cheaper?

Most are cheaper when it comes to funds rather than direct assets. 0.15%-0.25% is more typical for percentage based platforms nowadays.

tigerspill

At your young age, is there any reason that you wouldnt just put everything into a single Global Share Index Tracker?  You are young enough to take the risk associated with this and it vastly simplifies your portfolio.
If you want what some perceive as lower risk, why not consider putting it all in a single multi asset fund like VLS80?
What are the reasons behing the choice of each investment? 

kinger101

tigerspill said:

At your young age, is there any reason that you wouldnt just put everything into a single Global Share Index Tracker?  You are young enough to take the risk associated with this and it vastly simplifies your portfolio.
If you want what some perceive as lower risk, why not consider putting it all in a single multi asset fund like VLS80?
What are the reasons behing the choice of each investment? 

They are already at a higher risk level than a global index tracker.  Blackrock looks like an overpriced and underperforming pseudotracker.  Their blurb says one thing, but there asset allocation tells another story.  No point paying someone 0.67 % for what's available for under 0.2%.

The rest look like they've been picked on past performance.  It's already over 95% equity.  I suspect the underlying porffolio is already at least 85% similar to a global index and the other 13% that isn't cash or bonds will all be heavily invested in the same tech stocks (for which there's already considerable concentration in Blackrock by default).

OP is making the same errors I used to make when I was first started.  

MK62

incus432 said:

MJC1983 said:

Thanks for the comments, the fees for Black Rock My Map 6 are low at 0.17%, will probably transfer the Fundsmith to Blackrock as well as underperformed against the market with high fees for a couple of years.

Currently have everything with HL as the App has a good UI, but would not be averse to change. Are there providers that are considerably cheaper?

Many platforms - including HL - have much lower fees if you only hold ETFs/shares/ITs/gilts rather than OEIC funds.  HL caps charges at £200 pa for a SIPP in this case con

mpared with an eye-watering 0.45% on OEIC funds (I calculate you may be paying c £790 pa to HL on your current holdings -on top of the fund fees of course).  

Other platforms have even lower caps on charges for ETFs/shares holdings (AJ Bell is 120pa, Fidelity is £90 pa). Worth noting Fidelity have a cashback offer for transfers in until 1 April (£1000 for your pot.)

Both of these have lower OEIC charges too (0.25% and 0.35% respectively) if you dont want to switch to ETFs. But many of us have done just that in recent years to save on costs. (Note you'd need to check you could hold those same funds in any new platform if you want to hold on to them)

You also need to account for any dealing fees which are charged on non-OEIC investments..........HL, for instance, charges £11.95 for each deal.......