advice on regular payments into a SIPP please

incus432

I used Morningstar to chart the performance of those three (all Acc versions) over 10 years. Not much in it although Van ex UK has done best probably because UK has been poor over this period. I would want some UK exposure now though as I think time is right

bjorn_toby_wilde

incus432 said:

bjorn_toby_wilde said:

I forgot the other part of your question was about the fund charges.

Fidelity Index World 0.12
HSBC All World 0.13
Vanguard ex UK 0.14

Not much in it.  You can check this on II before you buy.

Just to say, according to Monevator if you include transaction costs the charges are

Fidelity Index World 0.12%. (In fact Developed World only)

HSBC All world 0.15% (Developed World plus Emerging markets)

Vanguard ex UK 0.15% (Developed World ex UK)

These are all OEIC funds

If you did want ETFs those are in the lists too

As to the 85k protection, you still own the holdings even if the platform went bust (extremely unlikely IMO) and it would be a matter of someone else taking over and the inconvenience of that rather than losing money.

https://forums.moneysavingexpert.com/discussion/6175111/protection-for-share-isas-over-85-000

 

Thanks for clarifying those. I just took the numbers straight from my AJ Bell account.

sadexpunk

they all seem to be cheaper than my original option (vanguard LS80 @ 0.22%) so id be happy investing in those.

as i mentioned before, im completely clueless with finance.  i started my SIPP 7 or so years ago just by amalgamating a few old engineering pensions that were underperforming (free half hour session with a FA) and i didnt really know what id got or what anything was worth, my pensions were a mess.  i could see a point in the future where id retire without having any idea of where my pensons were, who'd taken over from who, and it would be a right mess.  so i spent a few weeks collecting all the pension statements that id been filing away all those years and got on top of it.  the recommendation was pretty much the norm, your DC pensions are !!!!!!, so amalgamate them into a SIPP where you choose the investment, and keep your DB pension rolling as is.
im positive that in doing this, ive enhanced my pension pot from stagnating pensions to something that at least seems to be growing.  with that in mind, im not tooooo bothered about whether i choose the 'top performer' or not, im just happy to have some control over it, and know that ive got pretty much everything in an easy to find place and format if the worst happens and my wife has to deal with it all at some point.

so my decision on 'one fund' or 'a diversified 4 funds' is mainly driven by preventing loss of funds, and whats easiest for anyone to deal with later.  i guess both scenarios are roughly the same, so for not much effort now i may as well diversify a little as long as II can allot my payments across all 4 funds just as easily as one fund.  and for the same monthly/annual fee.

ive tried googling and just dont understand the difference between OEIC and ETFs.  is it important do you think?

im just about to send a message to II asking if ive understood the following correctly.....

i have 135k in my account waiting to be invested.  can i invest it in the following 4 funds equally....
HCBC FTSE All-World index fund C
VG Global All Cap
VG Developed World ex-UK Equity
Fidelity Index World

can i then add say 12k lump sum to my account at 3k in each fund for no cost?  (i could just add this to the 135k now i suppose, just thought id ensure everything was ok before adding to it)

can i then add £100 to my account monthly by DD and do i have a choice of either £25 in each per month, or can you put all £100 in these one by one on a rolling instruction?  and free trading, so no fee for this regular input?

can anyone see a flaw in this strategy?  am i misunderstanding anything do you think?

thank you :-) 

LHW99

I don't know the funds, except the Fidelity one, but a general comment would be that the funds would seem to have quite a bit of overlap, and by adding in the ex-UK fund, you would be reducing the UK% below even it's proportion of world markets. That may not be an issue, if that's what you want to do, but you need to be aware of it.

Personally I would go with one, or maybe 2 of the Global / World funds, but alternatively you could look at the Developed World ex-UK, and add a UK index (eg all share)  to give the % UK you want to achieve - be that 2% or 20%.

My opinion only.

sadexpunk

so a compromise which gives equal weighting to uk maybe then, yes?

and would the HSBC and fidelity funds above meet that suggestion?

thank you

incus432

Some practical differences between OEIC funds and ETFs are a) some platforms are cheaper for ETFs - don't know about the on you're in*; b) when you buy/sell ETFs it's instant unlike funds where you wait a day or two to find out the price and get the money.

* are you still in HL? They charge 0.45% of the total on funds in a SIPP (very high!) but cap at £200 pa if you hold ETFs. 

LHW99

sadexpunk said:

so a compromise which gives equal weighting to uk maybe then, yes?

and would the HSBC and fidelity funds above meet that suggestion?

thank you

There are small differences between the geographical weights:

In both cases, the top eight individual companies are the same (30/11/24), with slightly different percentages, according to Morningstar (use the links on the LHS of the pages):

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000SRPN

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000TXY8

bjorn_toby_wilde

Small differences indeed.

incus432 put a chart up a few posts ago showing there’s not much in performance terms between these funds. Any or all of them will surely do the job.

sadexpunk

incus432 said:

Some practical differences between OEIC funds and ETFs are a) some platforms are cheaper for ETFs - don't know about the on you're in*; b) when you buy/sell ETFs it's instant unlike funds where you wait a day or two to find out the price and get the money.

* are you still in HL? They charge 0.45% of the total on funds in a SIPP (very high!) but cap at £200 pa if you hold ETFs. 

thanks, so are there actually any benefits to OEICs?

and i still have a HL account i suppose, but theres nothing in it now, i transferred the SIPP over to II, which is where i am now, just about to give instructions to them on where to invest the cash.

LHW99 said:

sadexpunk said:

so a compromise which gives equal weighting to uk maybe then, yes?

and would the HSBC and fidelity funds above meet that suggestion?

thank you

There are small differences between the geographical weights:

In both cases, the top eight individual companies are the same (30/11/24), with slightly different percentages, according to Morningstar (use the links on the LHS of the pages):

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000SRPN

https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000TXY8

thanks for going to the trouble of explaining that to me, much appreciated.  seems that the difference is negligible then which im fine with, its just a slight diversification in case anything went wrong with one of them i suppose.

thanks again

incus432

Had a quick look at II - seems as though it has a flat fee for the SIPP of 12.99 pcm above 50k so £156 pa [edit] and low dealing charges (3.99) so reasonable.  I use ETFs because AJBell cap the charges at 120 pa (SIPP), and 42 pa (ISA) unlike for OEICs