New SIPP - are my fund choices sensible

dunstonh

1. why just 1 - whats the benefit?

They are all multi-asset funds.  They do the same thing.  Its a bit like buying four washing up liquids and mixing them up.

2. Annoying I thought the recommendation for a novice was always Passive funds ?? what is then? and should I be worried going active?

None of them are passives.   They are all managed multi-asset funds.  All of them use underlying passives.  You cannot get multi-asset passive funds as the decision on how much equities/bonds ratio, how much to allocate to each country/region, or what types of bonds to use and what ratios are all management decisions.

These are the right type of funds but just ignore how Monevator describes them.

I notice that the Artemis and Troy Trojan are in H&L 2024 5 top funds to watch! how would you split £200k? Sounds like you are good at trading but I'm a fist timer at this!

Ignore marketing lists.

MallyGirl

I am an amateur. I started with Vanguard but moved to HSBC funds once I had read a bit more.
In my ISA I have predominantly Adventurous as I hope for more growth there (tax free withdrawals) 
In my SIPP I have twice as much Balanced as Adventurous plus a couple of other smaller choices.

Hoenir

DeadlyD said:

Now for the fun part choosing the funds, 

Investing is far more than a day out at the races. Where you pick up a copy of the Sporting Life and look at the current form to dertmine those with the best chance of winning. Likewise the fun part soon ceases when choosen investments turn red. The era of buy anything and watch it rise in a linear fashion are sadly over. 

leosayer

mortgageFTB said:

Another vote for using ETFs here. You’ll pay a capped amount.

H&L’s 0.45% fees for holding OEIC’s are hideous.

VWRP sounds like a good bet for a world equity portfolio.

If you want to include a bond portion, then look at some of the bond etfs on offer with Vanguard or similar and then just split the %s yourself.

I second this, perhaps via a 50/50 split between VWRP and IGLS, rebalancing whenever you drawdown.

Albermarle

DeadlyD said:

@dunstonh
My questions are:- 
1. Should I split the £200k into 2 /3 /4 funds? or go with 1 or 2 ? to start with?
2. Should they be Passive?? or a mix? 
3. Vanguard has a  UK bias  - is that wise? It seems every man & his dog recommends Vanguard (?)
4. And I took from this site that HSBC Global was worth investment, as a risk 6 / 7 profile should I consider the Balanced or Adventurous? 
5. Any other thoughts on funds would be very much appreciated   

1  -one would be fine
2 - they all use underlying passives.  All of them are active.  Ignore monevator in this respect as they have a brain block there.  i.e. they think Vanguards management decisions (e.g. UK home bias) means it isn't managed.  But they think that HSBCs similar weighting decisions are managed.
3 - Only Vanguard fanboys recommend VLS nowadays.   Its not bad, certainly not but home bias and higher charges are negatives.
4 - You said you were cautious.  All the funds are medium risk or medium/high to high.

Why HL for holding OEICs?


Deadly -
1. why just 1 - whats the benefit?
2. Annoying I thought the recommendation for a novice was always Passive funds ?? what is then? and should I be worried going active?
3. Yup 
4. Turn of phrase - cautious as I'm new to Financial jargon and making the right choices...

H&L for OEIC's - oh god dare I ask what OEIC is.. but basically cash back @ £1.5k for transfer and can get out after 12 mths 

Regarding Point 2) the terminology can be a bit confusing.

A true passive fund is one that just follows an index, like following the FTSE 100 for example.

A true actively managed fund, is one where the fund manager is making decisions on what investments to put in the fund, what sectors or regions or companies to back etc. 

A fund like Vanguard Life strategy is made up of a number of passive funds. The manager will juggle them         around but within quite a tight remit. So you can probably equally describe them as passive or managed.
Or Passively managed or Managed Passively 

H&L for OEIC's - oh god dare I ask what OEIC is.. but basically cash back @ £1.5k for transfer and can get out after 12 mths 

Means an Open Ended Investment Company, it is a technical term for how most investment funds work. The large majority of funds in pensions are OEIC's or very similar.
HL, like most other platforms/pensions, allow you to buy and sell these funds without charge, but apply the 0.45% platform charge to them.
ETF = Exchange Traded Fund. These are passive index trackers, which you can buy and sell via the market for which there is a fee each time. However HL cap the platform fee on these products at £200 pa.
So far you can not buy multi asset versions in ETF form, so if you stick with this route you have to buy them in OEIC form.
Don't know the difference between an ETF and an Oeic? Investment jargon explained  (telegraph.co.uk)

DeadlyD

Albermarle said:

A true passive fund is one that just follows an index, like following the FTSE 100 for example.

A true actively managed fund, is one where the fund manager is making decisions on what investments to put in the fund, what sectors or regions or companies to back etc. 

A fund like Vanguard Life strategy is made up of a number of passive funds. The manager will juggle them         around but within quite a tight remit. So you can probably equally describe them as passive or managed.
Or Passively managed or Managed Passively 

That's very helpful thank you  

H&L for OEIC's - oh god dare I ask what OEIC is.. but basically cash back @ £1.5k for transfer and can get out after 12 mths 

Means an Open Ended Investment Company, it is a technical term for how most investment funds work. The large majority of funds in pensions are OEIC's or very similar.
HL, like most other platforms/pensions, allow you to buy and sell these funds without charge, but apply the 0.45% platform charge to them.
ETF = Exchange Traded Fund. These are passive index trackers, which you can buy and sell via the market for which there is a fee each time. However HL cap the platform fee on these products at £200 pa.
So far you can not buy multi asset versions in ETF form, so if you stick with this route you have to buy them in OEIC form.
Don't know the difference between an ETF and an Oeic? Investment jargon explained  (telegraph.co.uk)

Thanks again! There is a recommendation to go with EFT's but think as a first timer I'll go for the Multi Asset funds to start with - a suggestion on my earlier thread. 

Scrounger

DeadlyD said:

Thanks again! There is a recommendation to go with EFT's but think as a first timer I'll go for the Multi Asset funds to start with - a suggestion on my earlier thread. 

ii are offering up to £5,000 cashback on pension transfers (£1500 on a £200k transfer) and platform fees would be just £156pa for funds:

http://www.ii.co.uk/acq/open-sipp-account

A saving of £744pa over HL platform fees with much lower dealing costs (£3.99 vs £12.50 per trade).


Scrounger

ColdIron

Scrounger said:

A saving of £744 over HL platform fees with much lower dealing costs (£3.99 vs £12.50 per trade).

£11.95 (tiered) or £0 with Monthly savings

Albermarle

Scrounger said:

DeadlyD said:

Thanks again! There is a recommendation to go with EFT's but think as a first timer I'll go for the Multi Asset funds to start with - a suggestion on my earlier thread. 

ii are offering up to £5,000 cashback on pension transfers (£1500 on a £200k transfer) and platform fees would be just £156pa for funds:

http://www.ii.co.uk/acq/open-sipp-account

A saving of £744pa over HL platform fees with much lower dealing costs (£3.99 vs £12.50 per trade).


Scrounger

There is really a big battle for market share going on .
Offering thousands in cashback and only charging £150 pa. Where is the sense in that ?

artyboy

Albermarle said:

Scrounger said:

DeadlyD said:

Thanks again! There is a recommendation to go with EFT's but think as a first timer I'll go for the Multi Asset funds to start with - a suggestion on my earlier thread. 

ii are offering up to £5,000 cashback on pension transfers (£1500 on a £200k transfer) and platform fees would be just £156pa for funds:

http://www.ii.co.uk/acq/open-sipp-account

A saving of £744pa over HL platform fees with much lower dealing costs (£3.99 vs £12.50 per trade).


Scrounger

There is really a big battle for market share going on .
Offering thousands in cashback and only charging £150 pa. Where is the sense in that ?

Who cares? Fill yer boots 🤣