Best (?) HL SIPP fund for £2,880

Stubod

Hi all,

For the first time I am considering opening a DIY SIPP with HL for this years allowance. I already have pensions, SS ISA's and savings in various accounts, so just looking for a medium risk fund to "maximise" my annual £2,880 allowance. The fund I am considering is the Trojan Fund, X Income. Currently looking for a bit of income.

Just looking for any alternative advice / suggestions?3

Many thanks...

dunstonh

 so just looking for a medium risk fund to "maximise" my annual £2,880 allowance.

Your allowance is £3600 as a non-earner.   Your net contribution is £2,880 for 22/23.

Just looking for any alternative advice / suggestions?3

You don't get advice here. Board won't allow it, and there isn't enough detail to give advice anyway.  You get discussion and opinion only.

Why are you looking at the Troy Trojan fund?  i.e. what attracted you to it?

Stubod

..ta for the reply....only looking at the trojan fund as it came up as one of their medium risk options. Just wanted to make the most of my annual allowance rather than keeping money in savings accounts....really just looking for a "reasonable" medium risk return....happy to "discuss" and consider any opinions rather than getting any advise...  

Secret2ndAccount

I don't want to say Troy is bad necessarily, but I would note this: It describes itself as having an element of wealth preservation - not going down too much even if markets are down. Yet, according to H-L's figures it's down by 8% in 2 of the last 5 years.

Also the annual fee is 0.62% of your money (even in the years they lose you 8%)

By comparison, here is VLS60. Again, not a recommendation from me, but it's popular around these parts:

They don't claim to preserve your wealth, yet have done a better job of doing so. And they only take 0.22% of your money every year.
Nobody ever got fired for buying VLS60, so maybe start with that, then read some more, and see if anything inspires you. It's easy, and normally free to switch funds.

You are doing the right thing by getting yourself some tax relief, and investing the money for the long term.

Regarding Income (Inc) vs Accumulation (Acc) funds, it would be typical to choose the Acc version for a long term investment. Both kinds make the same amount of income, but the Acc ones immeditely spend it on more of the same fund. If you choose the Inc version, it will pay little bits of cash into your SIPP from time to time. If you don't plan to withdraw the money, you probably end up buying more of the same fund once or twice a year. Which is much the same thing that the Acc version is doing automatically.

Stubod

..great discussion...many thanks for your opinion....appreciated.

Albermarle

Secret2ndAccount said:

I don't want to say Troy is bad necessarily, but I would note this: It describes itself as having an element of wealth preservation - not going down too much even if markets are down. Yet, according to H-L's figures it's down by 8% in 2 of the last 5 years.

Also the annual fee is 0.62% of your money (even in the years they lose you 8%)

By comparison, here is VLS60. Again, not a recommendation from me, but it's popular around these parts:

They don't claim to preserve your wealth, yet have done a better job of doing so. And they only take 0.22% of your money every year.
Nobody ever got fired for buying VLS60, so maybe start with that, then read some more, and see if anything inspires you. It's easy, and normally free to switch funds.

You are doing the right thing by getting yourself some tax relief, and investing the money for the long term.

Regarding Income (Inc) vs Accumulation (Acc) funds, it would be typical to choose the Acc version for a long term investment. Both kinds make the same amount of income, but the Acc ones immeditely spend it on more of the same fund. If you choose the Inc version, it will pay little bits of cash into your SIPP from time to time. If you don't plan to withdraw the money, you probably end up buying more of the same fund once or twice a year. Which is much the same thing that the Acc version is doing automatically.

When I look at Troy Trojan X income on HL , I see this. ( which fits in better with its brief as a WP fund ) 
One of us must be looking at the wrong fund !

	22/09/17 to 22/09/18	22/09/18 to 22/09/19	22/09/19 to 22/09/20	22/09/20 to 22/09/21	22/09/21 to 22/09/22
Annual return	0.93%	8.04%	7.37%	10.17%	-0.20%

Linton

Secret2ndAccount said:

I don't want to say Troy is bad necessarily, but I would note this: It describes itself as having an element of wealth preservation - not going down too much even if markets are down. Yet, according to H-L's figures it's down by 8% in 2 of the last 5 years.

Also the annual fee is 0.62% of your money (even in the years they lose you 8%)

By comparison, here is VLS60. Again, not a recommendation from me, but it's popular around these parts:

They don't claim to preserve your wealth, yet have done a better job of doing so. And they only take 0.22% of your money every year.
Nobody ever got fired for buying VLS60, so maybe start with that, then read some more, and see if anything inspires you. It's easy, and normally free to switch funds.

You are doing the right thing by getting yourself some tax relief, and investing the money for the long term.

Regarding Income (Inc) vs Accumulation (Acc) funds, it would be typical to choose the Acc version for a long term investment. Both kinds make the same amount of income, but the Acc ones immeditely spend it on more of the same fund. If you choose the Inc version, it will pay little bits of cash into your SIPP from time to time. If you don't plan to withdraw the money, you probably end up buying more of the same fund once or twice a year. Which is much the same thing that the Acc version is doing automatically.

You cannot really compare Troy Income with VLS60.  They are totally different funds with different underlying investments and different objectives. They will behave differently under different economic conditions.  Troy Income is 100% UK equity.  VLS60 Is 60% global equity (although with a fairly high UK bias) and 40% bonds. Troy Income's stated objective is to provide income with "a potential for growth" in the medium term.  Its yield is 2.8%.
VLS60s objective is to hold 60% equity and 40% bonds.  Its yield is 1.45%. 

Whether either meet the OPs requirement for a medium risk fund with a bit of income is difficult to say.  It depends very much on what constitues "a bit of income" and what is meant by "medium risk".

Personally I would not choose either fund as a single investment with above average income.  If Troy Income is a guide, surely Troy Global Income would be a much better bet since it is far more diversified.  Troy Global's yield is 2.7%, not very different.

dunstonh

There are multiple funds with Troy Trogan in the in the name.    Troy Trojan and Troy Trojan income.  They are different funds at different risk levels and objectives.

Linton

Albermarle said:

Secret2ndAccount said:

I don't want to say Troy is bad necessarily, but I would note this: It describes itself as having an element of wealth preservation - not going down too much even if markets are down. Yet, according to H-L's figures it's down by 8% in 2 of the last 5 years.

Also the annual fee is 0.62% of your money (even in the years they lose you 8%)

By comparison, here is VLS60. Again, not a recommendation from me, but it's popular around these parts:

They don't claim to preserve your wealth, yet have done a better job of doing so. And they only take 0.22% of your money every year.
Nobody ever got fired for buying VLS60, so maybe start with that, then read some more, and see if anything inspires you. It's easy, and normally free to switch funds.

You are doing the right thing by getting yourself some tax relief, and investing the money for the long term.

Regarding Income (Inc) vs Accumulation (Acc) funds, it would be typical to choose the Acc version for a long term investment. Both kinds make the same amount of income, but the Acc ones immeditely spend it on more of the same fund. If you choose the Inc version, it will pay little bits of cash into your SIPP from time to time. If you don't plan to withdraw the money, you probably end up buying more of the same fund once or twice a year. Which is much the same thing that the Acc version is doing automatically.

When I look at Troy Trojan X income on HL , I see this. ( which fits in better with its brief as a WP fund ) 
One of us must be looking at the wrong fund !

	22/09/17 to 22/09/18	22/09/18 to 22/09/19	22/09/19 to 22/09/20	22/09/20 to 22/09/21	22/09/21 to 22/09/22
Annual return	0.93%	8.04%	7.37%	10.17%	-0.20%

There are  different but similar named funds: Trojan Income X and Trojan X Inc.  The first is primarily an income fund and the second wealth Preservation.  Both Secret Investor and myself were actually looking at Trojann Income X, probably wrongly.  I now think the OP was after Trojan X Inc which corresponds to your figures.

Trojan X Inc has a yield of 0.1% which is hardly "a bit of income".

So perhaps the OP could be clearer as to what he/she is after.

Stubod

Hi, and thanks for all the good opinions.....Really I am just after using up my annual SIPP allowance to get the best short / medium term gains possible while taking advantage of the tax relief.

Do not really have any need for the money at the mo, as I am due to start taking my "non index linked" DB pension shortly, and my OH is already taking their NHS pension. Both of these should just about cover our current expenditure, and then we both have state pensions in a couple more years.

Albermarle

Really I am just after using up my annual SIPP allowance to get the best short / medium term gains possible while taking advantage of the tax relief.

That's what we all want, so it is a statement of the obvious. The question is how much possible downside risk will you take to try and achieve what you want.