alternatives to equity

dannybbb

I have 80k uninvested in my sipp that i need to do something with. 

With only 15 years to retirement and the possibility of a falling market / no growth for a significant amount of time im looking for alternatives to  the balanced hsbc global fund i was considering.

Growth would be nice but really happy just to protect it from inflation - i was consideirng  the cautious  or conservative hsbc funds but would if i went completely outside of equities, are there any funds you would reccomend?

masonic

There is now the iShares Up To 10 Year Index Linked Gilt fund, which should give reasonable inflation protection. A small amount of a gold ETF would normally be worth considering (not sure I would at the current gold price). Vanguard offers a Global Bond Index fund and Global Aggregate Bond ETF, both currency hedged, that could serve as a core bond holding.

15 years is early to be reducing risk significantly, but it may be time to start slowly easing into such options.

dannybbb

@masonicits the only cash i have in a private pension. annoyed to have left it late and entering investing at a difficult time with a shortish time horizon. 
this one? https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00001GK43
excuse my ignoance, whet is the difference between this and the global bond funds to help me decide. I thought about a fund with some equity too , what are your thoughts on the hsbc funds i mentioned?

dunstonh

With only 15 years to retirement 

And are you planning to draw the whole amount out in 15 years time?

boingy

15 years is more than enough. Get it in a global tracker and forget about it for a decade or so. Trump will be dead, tariffs will be a thing of the past and globalization will be back.

NedS

I'd sit tight for now in a short term fixed income or money market fund as ~5% seems quite appealing right now. A market crash might present you with the ideal opportunity to deploy that cash. This mess is going to take a while to play out.

masonic

dannybbb said:

@masonicits the only cash i have in a private pension. annoyed to have left it late and entering investing at a difficult time with a shortish time horizon. 
this one? https://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00001GK43
excuse my ignoance, whet is the difference between this and the global bond funds to help me decide. I thought about a fund with some equity too , what are your thoughts on the hsbc funds i mentioned?

Yes, that is the fund. The global bond funds hold conventional bonds, which pay a fixed coupon. The index linked gilt fund holds short-duration UK government bonds where the capital amount and coupons increase with inflation. You could hold some of each.

The lower risk HSBC Global Strategy funds are good options too. A multi-asset fund with 20% equities generally has slightly lower risk and higher returns than a 100% bond fund, so could fit the bill.

dannybbb

@NedS how would i pick a money market fund, what are the parameters?
yeah its not just trump /tarriff stuff but the high valuation of the stock market that ive read about, even without the tariff situation I keep reading about how there is there is a likelyhood of a long period of no growth , of course its speculation but seemed compelling and a replication of what has happened in the past when stocks were so overvalued. As its my only pension i need to make sure it does ok and as you say 5% will little risk sounds good at the moment

dannybbb

@dunstonh i have a rental property that pays around £800pm and some cash so im hoing not no

Hoenir

dannybbb said:

 

With only 15 years to retirement and the possibility of a falling market / no growth for a significant amount of time 

Only 24 hours is a significant amount of time at the moment. Been the weekend for the past two days. Chinese markets were also closed for a holiday on Friday. Given the heightened level of uncertainty. I'd take a deep breathe and let matters unfold some more yet. Corrections when they come tend to be fairly brief and savage. Whereas the recovery can be a long slow road. Easy to lose capital at the moment. As the old adge goes don't risk what you cannot afford to lose.

Tomorrow might be the start of let's say an interesting week. As there was support from retail "buy" the dip US retail investors on Thursday and Friday. While hedge funds were offloading. The White House rhetoric has been been to ignore and lie in response to intelligent questions. A line of defence that can only crumble. Once CEO's of major corporations break their silence and start speaking out. 

dannybbb

@Hoenir thanks for that, keen to get the cash invested in some way but might leave it withing the sipp as cash for a week or two so i can act more quickly