SIPP - Swap fund or not?

Sanxxx

Approximately 18mths , I left my IFA and decided to opt for a 'fire and forget' approach on an 80:20 Equity/Bonds basis, with one of the tenets being that I would not tinker/try to play the market etc.

Currently I'm invested as follows
41% Fidelity Index World P Acc
41% HSBC All World Index C Acc
10% Vanguard Global Bond Index GBP H Acc
08% Vanguard UK Govt Bond Index GBP Acc

The top three have all performed relatively well against their peers in the relevant sector, however the last one is a bit of a dog being consistently in the sector 4th Quartile for the last five years.

I'm debating whether to swap this one out for a 'better' performing option in the same sector e.g. abrdn Sterling Short Term Government Bond (I) Acc.

The question is would you consider this tinkering? In my mind I'm completely split between thinking this is not really different to selling as a result of a price fall  which goes against what I set out to do, and, that a like for like replacement based on peer-to peer performance is ok. 

MetaPhysical

The global index trackers of which you have 41% in each will have a huge amount of duplication. 

If you're sitting on a dog then get rid of it is my mantra.  Why not buy something like ERNS ????

LHW99

Do you mean 0.8% of the UK bond fund, or 8%?

0.8% isn't going to move the gauge even if it trebled in value!

squirrelpie

LHW99 said:

Do you mean 0.8% of the UK bond fund, or 8%?

0.8% isn't going to move the gauge even if it trebled in value!

The total doesn't add up to 100% if you take your first interpretation!

DeLaSole

Hi Sanxxx,

As performance difference is to be expected when their makeup is different - Aberdeen's fund is 80% <5 years while Vanguard is 30% - I think it's less about 'tinkering' and more about deciding on the type of gilt fund actually wanted, if you're going to use one at all.

Best wishes.

dunstonh

The global index trackers of which you have 41% in each will have a huge amount of duplication. 

It may by fund house diversification.    With larger values, often its good idea to spread over different fund houses even if they are effectively doing the same thing.   

The top three have all performed relatively well against their peers in the relevant sector, however the last one is a bit of a dog being consistently in the sector 4th Quartile for the last five years.

Does that matter?  
As it happens, many believe that the US and some other countries will have to go through what the UK did over that period.

I'm debating whether to swap this one out for a 'better' performing option in the same sector e.g. abrdn Sterling Short Term Government Bond (I) Acc.

Why are you looking backwards when you should be looking forward?

TheTelltaleChart

Yes, it's tinkering. It's also performance-chasing.

Beddie

If you're happy with Vanguard Global Bond Index then you could move it into that fund, keeps things nice and tidy. Slightly higher risk, but nothing to be concerned about.