low risk bonds or equities in SIPPs

chiang_mai

LHW99 said:

Another possible contender is Trinity Bridge Conservative Managed.

This looks like a fund of funds, is that right? I see it's annual charge (on HL) is 1%, which is raher higher than I would personally choose.

I tend to avoid FofF types, as it's not so easy to see "under the bonnet" as it were.

I'm not sure that I would buy into the fund either, only that it's a possible contender as a lower risk option. It is indeed a F of F's. It's not too difficult to see the contents since almost 50% of its assets are in the top 10% and shown on the M/S page, some of which I'm familiar with and appear to be reasonable choices, from a risk aversion perspective. I did see that the fund has fairly low volatility and a small peak to trough drawdown, whether or not it performs well is another matter. Without understanding the OP's starting point, it's difficult to understand where he wants to get to. Risk is an infinite variable that is dfferent for everyone hence it's not really possible to recommend specific products or funds.

https://global.morningstar.com/en-gb/investments/funds/F00000PZ8V/portfolio

jazzy23

lots to think about thanks - fyi - I am derisking as I want to drawn down in three years - and just trying to get the equity/cash ratio right.  
I havent quite got to grip with bonds.... ahem.... 

Middle_of_the_Road

dunstonh said:

Hi I am starting to derisk my SIPP from equities and rather than put in to cash within it I wondered about bonds or low risk equities (is there one i wonder?) 

Moving from equities to equities doesn't reduce the risk unless you have smaller cos and are moving to large caps.  Or individual share holdings and moving to general equity funds.  Or specialist focused equity funds (industry focused for example) and move to general equity funds.

Typically, people lower their equity content when they want to reduce risk by using Short Term Money market, gilts and bonds.   However, it is worth noting that you can get higher risk gilts and bonds.  So, you need to be careful what you select.

SIPPs, assuming yours is a SIPP and not a pretend one or a mistaken reference, also have a range of deposit options.

Just picking up on the point in bold above. I've heard this referenced before on here, but wouldn't know how to determine what is infact a proper SIPP. I have one with HL, and I'm assuming it's proper?

masonic

Middle_of_the_Road said:

dunstonh said:

Hi I am starting to derisk my SIPP from equities and rather than put in to cash within it I wondered about bonds or low risk equities (is there one i wonder?) 

Moving from equities to equities doesn't reduce the risk unless you have smaller cos and are moving to large caps.  Or individual share holdings and moving to general equity funds.  Or specialist focused equity funds (industry focused for example) and move to general equity funds.

Typically, people lower their equity content when they want to reduce risk by using Short Term Money market, gilts and bonds.   However, it is worth noting that you can get higher risk gilts and bonds.  So, you need to be careful what you select.

SIPPs, assuming yours is a SIPP and not a pretend one or a mistaken reference, also have a range of deposit options.

Just picking up on the point in bold above. I've heard this referenced before on here, but wouldn't know how to determine what is infact a proper SIPP. I have one with HL, and I'm assuming it's proper?

I believe the distinction is whether the assets are held in insured pension funds vs self invested within a wide range of asset classes, such as would be held unwrapped.

Middle_of_the_Road

masonic said:

Middle_of_the_Road said:

dunstonh said:

Hi I am starting to derisk my SIPP from equities and rather than put in to cash within it I wondered about bonds or low risk equities (is there one i wonder?) 

Moving from equities to equities doesn't reduce the risk unless you have smaller cos and are moving to large caps.  Or individual share holdings and moving to general equity funds.  Or specialist focused equity funds (industry focused for example) and move to general equity funds.

Typically, people lower their equity content when they want to reduce risk by using Short Term Money market, gilts and bonds.   However, it is worth noting that you can get higher risk gilts and bonds.  So, you need to be careful what you select.

SIPPs, assuming yours is a SIPP and not a pretend one or a mistaken reference, also have a range of deposit options.

Just picking up on the point in bold above. I've heard this referenced before on here, but wouldn't know how to determine what is infact a proper SIPP. I have one with HL, and I'm assuming it's proper?

I believe the distinction is whether the assets are held in insured pension funds vs self invested within a wide range of asset classes, such as would be held unwrapped.

Understood, thanks 👍 

chiang_mai

Another lower risk fund that has over performed is Orbis Global Cautious, now available on HL. It's circa 44% equities plus gold and TIPS but is pricey at 1.20%. It's cousin, Orbis Global Balanced, is also lower risk but is 75% equties. I'm currently making all my funds reapply for their jobs for the comming year and the above certainly has a role in my holdings. The FM is highly regarded and considered to be at the top of his game.