I've opened a SIPP at Hargreaves Lansdown and will move a pension pot into it from another provider and go for a flexible draw-down option. It will be a 6 figure sum. Any recommendations on funds (that H-L have) to invest in. Was going to leave some as cash and put some into equities with a focus on growth - any recommendations out there!?
I've opened a SIPP at Hargreaves Lansdown and will move a pension pot into it from another provider and go for a flexible draw-down option. It will be a 6 figure sum. Any recommendations on funds (that H-L have) to invest in. Was going to leave some as cash and put some into equities with a focus on growth - any recommendations out there!?
On that basis, Lindsell Train Global Equity. Been a fantastic fund for me. And last time I checked it would mean you become a shareholder in both Juventus and Celtic, as well as companies like Unilever.
Fundsmith Equity has been almost as good for me, even though it means I'm a shareholder in Big Tobacco :-(
Jupiter Europe has also done well for me, but whether now is the time to buy into such a fund, is a question you'd want to ask yourself.
You can also buy investment trusts on the platform, so if you fancy tech, I am in both the Polar Capital and the Allianz tech trusts
There are those who argue that buying good trackers would be a better bet, and I'm not sufficiently sure of the evidence to argue against that, but the Lindsell Train fund certainly makes a compelling case
The good thing about H-L is it has a pretty huge range. But I am not at all convinced by their "star" fund choices, reckon its all driven by promotional fees from the funds.
I've opened a SIPP at Hargreaves Lansdown and will move a pension pot into it from another provider and go for a flexible draw-down option. It will be a 6 figure sum. Any recommendations on funds (that H-L have) to invest in. Was going to leave some as cash and put some into equities with a focus on growth - any recommendations out there!?
On that basis, Lindsell Train Global Equity. Been a fantastic fund for me. And last time I checked it would mean you become a shareholder in both Juventus and Celtic, as well as companies like Unilever.
Fundsmith Equity has been almost as good for me, even though it means I'm a shareholder in Big Tobacco :-(
Jupiter Europe has also done well for me, but whether now is the time to buy into such a fund, is a question you'd want to ask yourself.
You can also buy investment trusts on the platform, so if you fancy tech, I am in both the Polar Capital and the Allianz tech trusts
There are those who argue that buying good trackers would be a better bet, and I'm not sufficiently sure of the evidence to argue against that, but the Lindsell Train fund certainly makes a compelling case
The good thing about H-L is it has a pretty huge range. But I am not at all convinced by their "star" fund choices, reckon its all driven by promotional fees from the funds.
I have a Fidelity SIPP and have split across these amongst others. HL should have their own funds as well if you're using them? AXA tech funds worth a look too, as are some of Fidelity's.
Great shout 're those funds. If you want a bit of "safety" thrown in then a couple of bond funds I'd choose are Royal London Sterling Extra Yield & Schroder High Yield Opportunities. Bung in a property fund for good measure (No more than 10% - Aviva, L&G or Threadneedle) and you'd have a decent portfolio. You could substitute the Global Equity fund for Baillie Giffords American fund & Invesco's Pacific fund (a long with Jupiter European & Fundsmiths UKEquity)
Great shout 're those funds. If you want a bit of "safety" thrown in then a couple of bond funds I'd choose are Royal London Sterling Extra Yield & Schroder High Yield Opportunities. Bung in a property fund for good measure (No more than 10% - Aviva, L&G or Threadneedle) and you'd have a decent portfolio. You could substitute the Global Equity fund for Baillie Giffords American fund & Invesco's Pacific fund (a long with Jupiter European & Fundsmiths UKEquity)
But hey....what do I know...
Before I reach your limit of free advice Golfie, how many different funds would you have altogether?
Golfie and Prague are well ahead of me in terms of expertise. If you're new to it all I find Morning Star pretty useful (http://www.morningstar.co.uk) for news/advice/snippets. You can also manually upload your portfolio and keep track of it and they have lots of free analysis you can use before you invest anywhere.
I guess I should mention that I recently eased back on the tech funds in my SIPP, by selling off the Allianz chunk at more or less parity to what I bought in at. The big techs face some headwinds in terms of regulation which they well deserve, and I felt that they might be a bit volatile for a SIPP (at least at my age, where I might be needing it in five years or so). On the other hand I bought into them as a safer, more rational way to invest in blockchain tech, so I intend to hold what I have.
Anyway, as always the advice is make sure you read up, and are comfortable with your choice from your own perspective.
Great shout 're those funds. If you want a bit of "safety" thrown in then a couple of bond funds I'd choose are Royal London Sterling Extra Yield & Schroder High Yield Opportunities. Bung in a property fund for good measure (No more than 10% - Aviva, L&G or Threadneedle) and you'd have a decent portfolio. You could substitute the Global Equity fund for Baillie Giffords American fund & Invesco's Pacific fund (a long with Jupiter European & Fundsmiths UKEquity)
But hey....what do I know...
Before I reach your limit of free advice Golfie, how many different funds would you have altogether?
Depends on the size of your pension. A fund in excess of £100k I'd say anywhere between 12 and 15 individual funds. For a balanced risk I commonly split a portfolio thus:
UK Equity - 21% (3 funds of 7%) US Equity - 16% (2 funds of 8%) Europe - 8% Asia (inc Japan) 8% Property - (2 funds x 5%) Fixed interest- 37% (3x10% +1x7%)
Approx %'s as these things are a moving feast.....but should give you a picture.
I’m going to have a closer look at my Suffolk Life SIPP and see where Investec are investing my funds. If it’s not in any of the above named then by God they will have hell to pay @golfaddick@PragueAddick
Like Prague i have Lindsell Train both Global and UK, Also the Allianz Tech.
Fidelity ( so you may not be able to get it) Global Health, also L&G Global Healthcare. BNY Mellon Long Term Global Equity Rathbone Global Opportunities Liontrust UK Growth Fidelity Emerging Markets Polar Capital Global Tech
My Suffolk Life SIPP, managed by Investec, is currently split as follows :
Equities 40.775%, Fixed Interest 28.543%, Alternative Assets 16.775%, Property 7.293% and Cash 6.614% and invested in the following :
Aberdeen Std Fd Mg Gbl Idx Lkd Bd S Instl Inc
Allianz Glb Invest Gilt Yield I GBP Dis
Aviva Investors UK US Equity Inc Ii 2 Inc Nav
AXA Funds Mgmt SA Framlington UK I GBP Acc
AXA Investment Man Framlington UK Mid Cap Zi G
Blackrock (Lux) SA Emerging Mkts Flexi Dyn Bd
BNY Mellon Fd Mngr Newton Intl Bd W Net Instl
Boussard & Gavauda Absolute Return Z GBP Acc
Citigroup Glbl Mkt 8.15% FTSE/S&P ACall25
Civitas Social Hou Ord GBP0.01
Empiric Student Pr GBP0.01
Fidelity EUR Value Ord GBP0.025
FIL Inv Svcs UK Moneybuilder Inc Y Acc Nav
FIL Inv Svcs UK Spec Situations W Acc Nav
Findlay Park Fds American Sterling GBP Uhdg
Finsbury G&i Tst Ord GBP0.25
First State Inv Stewart Inv Asia Paci Ldrs
Franklin Templ/Im UK Smaller Cos W Acc Nav
GAM Luxembourg S.a Multiptnr Robecosam Smt Mtr
H20 Global Strateg Multi Aggregate I USD
Henderson Investme Janus Hend EURP Selected Op
Hermes Investment Global Emerging Markets J G
Investec Fund Mgrs UK Special Situations I Acc
Iridian Ucits Fund US Equity I GBP Acc
Iridian Ucits Fund US Equity Ip GBP Dis
Ishares V Plc S&P 500 GBP Hedged Ucits Et
JPM Global Dispersion CPN 2021
JPM Struct.prod.bv 8.62% FTSE/Eurostoxx 23
JPMorgan Am UK Ltd UK Equity Core E Net Acc
Jupiter UT Mngrs Strategic Bond Z Acc
Jupiter UT Mngrs UK Spec Situations I GBP
Kames Capital Invt Absolute Rtn Bond C Acc Nav
Liontrust Global F GF Special Situations C3
Man Funds Plc Man GLG Jpn Calpha Eqty I H
Morgan Stanley Bv 0% Eln 30/12/2025
Morgan Stanley Bv 66.30% FTSE/S&P Synthetic25
Morgan Stanley Bv 7.87% FTSE/S&P Def Acall25
Neuberger Ber Inv Uncorrelated Strategies I2
Polar Capital Fund North Amer S GBP Dis Nav
Primary Hlth Prop Ord GBP0.125
Schroder Japan Gwt Ord GBP0.10
Secure Income Reit Ord GBP0.1
SG Issuer 6.23% FTSE Def ACall 24
The Renewables Inf Ord Npv
Vulcan Global Valu Value Equity Ii Acc Nav
Worldwide Hlthcare Ord GBP0.25
It's fair to say that I decided I did not want to take any risks with my Portfolio, I want to retire in a couple of years when I'm 58 and the wife is 55, and these investments are going to have to sustain us into, hopefully, old age and so my Risk appetite was Low. However, any thoughts anyone??
@Rob7lee - it's ok giving it a LOL but I don't know of the risks attached to each particular product. That's surely what I pay Investec for?
I LOL'd (almost liked) as your post stated "It's fair to say that I decided I did not want to take any risks with my Portfolio" and that your "risk appetite is low"- do Investec know you this? The fund highlighted I believe comes up in one of the, if not the highest category of risk.
If you are looking to retire in 2 years (and access the pension) then you need a discussion with Investec ASAP, I'm certainly not an expert but that portfolio looks far from a low risk/wishing to draw in a couple of years time portfolio. If we had a downturn post brexit etc etc you could see a lot of value wiped from your fund. Probably fine if you are 10+ years away from needing it and still contributing.
They’re basically an implicit bet on stock market volatility remaining low, and the banks that write these structures charge you a very high fee for the privilege (hence their propensity to put you in them).
Ask your adviser to stress test your portfolio for a stock market crash of say down 25%.
I wouldn't worry too much about the structured products within your portfolio. These will come under the "alternatives" portion.....and that will include the absolute return funds too. Being a SIPP it means Investec will invest not only in collectives (Oeics & Investment Trusts) but also ETF's, direct shares & other investment strategies. You will find that they might trade more than you expect & may not hold some of the more well known funds.
Looking at your portfolio I think a few of the OEIC finds are a bit old hat, like Fidelity special sits, Henderson European Select ops & the AXA funds......but you do have Findlay Park American & Fidelity Moneybuilder, which are decent funds.
A SIPP wouldn't be my product of choice , but that's maybe because it means you should be trading in & out of funds & strategies.....and that takes a lot of time & effort for the layman (hence why you've outsourced it to a DFM). Once in drawdown you may want to look at a more traditional approach & go for a plan with someone like Royal London.
@Rob7lee - it's ok giving it a LOL but I don't know of the risks attached to each particular product. That's surely what I pay Investec for?
I LOL'd (almost liked) as your post stated "It's fair to say that I decided I did not want to take any risks with my Portfolio" and that your "risk appetite is low"- do Investec know you this? The fund highlighted I believe comes up in one of the, if not the highest category of risk.
If you are looking to retire in 2 years (and access the pension) then you need a discussion with Investec ASAP, I'm certainly not an expert but that portfolio looks far from a low risk/wishing to draw in a couple of years time portfolio. If we had a downturn post brexit etc etc you could see a lot of value wiped from your fund. Probably fine if you are 10+ years away from needing it and still contributing.
thanks. I will email my advisor and ask him about this particular fund and ask him to review my products in general.
I have already started accessing my pension by crystallizing a proportion last year and taking 25% of that tax free and plan to do the same for the next two or three years until my wife reaches 55 and we can access her pension too at which point we will decide what to do going forwards.
I wouldn't worry too much about the structured products within your portfolio. These will come under the "alternatives" portion.....and that will include the absolute return funds too. Being a SIPP it means Investec will invest not only in collectives (Oeics & Investment Trusts) but also ETF's, direct shares & other investment strategies. You will find that they might trade more than you expect & may not hold some of the more well known funds.
Looking at your portfolio I think a few of the OEIC finds are a bit old hat, like Fidelity special sits, Henderson European Select ops & the AXA funds......but you do have Findlay Park American & Fidelity Moneybuilder, which are decent funds.
A SIPP wouldn't be my product of choice , but that's maybe because it means you should be trading in & out of funds & strategies.....and that takes a lot of time & effort for the layman (hence why you've outsourced it to a DFM). Once in drawdown you may want to look at a more traditional approach & go for a plan with someone like Royal London.
meaning what? Move the money out of the SIPP and into? Would a 'plan' allow me the same flexability? Would it mean Mrs Large would still get the full benefit of it if I were to pass away?
I wouldn't worry too much about the structured products within your portfolio. These will come under the "alternatives" portion.....and that will include the absolute return funds too. Being a SIPP it means Investec will invest not only in collectives (Oeics & Investment Trusts) but also ETF's, direct shares & other investment strategies. You will find that they might trade more than you expect & may not hold some of the more well known funds.
Looking at your portfolio I think a few of the OEIC finds are a bit old hat, like Fidelity special sits, Henderson European Select ops & the AXA funds......but you do have Findlay Park American & Fidelity Moneybuilder, which are decent funds.
A SIPP wouldn't be my product of choice , but that's maybe because it means you should be trading in & out of funds & strategies.....and that takes a lot of time & effort for the layman (hence why you've outsourced it to a DFM). Once in drawdown you may want to look at a more traditional approach & go for a plan with someone like Royal London.
meaning what? Move the money out of the SIPP and into? Would a 'plan' allow me the same flexability? Would it mean Mrs Large would still get the full benefit of it if I were to pass away?
YES.
Royal London offer a flexi-access drawdown plan - 5 Governed |Portfolios that get viewed & adjusted quarterly and specifically designed for those in "drawdown", Or you can have one of their 9 Governed Portfolios that are primarily used for those building up their pension fund, but can be used for anyone. Or Lifestyle portfolios (generally used for GPP's) or just use their fund range.
And the cost for this. Just 0.45% pa for portfolios in excess of £70k - 0.4% if in excess of £200k (or thereabouts).
Golfie, don’t know if you put clients into such structured products but if so on what basis are they justified?
My clients that go into a Structured Product usually have used up their full ISA allowance (husband & wife) every year & have in excess of £250k in them. They may also have a General Investment Account (unit trusts to the over 40's) and/or Investment Bonds (but only for the basic rate taxpayers). That then doesn't leave much else to invest into. Usually it is only £20k -£25k that goes in & 95% likely to be a SCARPS plan, so that any gains can be used against their annual CGT allowance.
FCA guidelines for advisers say that no more than 10% of a clients "assets" should be invested into an individual SP & no more than 25% in total.
Typical ones that I have been using recently have been defensive ones, usually with a kick-out feature. Paying 7% pa with kick-outs after 2 years, starting at 100%, then 95%, 90%, 85% & finally 80%. Always backed against the FTSE.........don't like dual Index ones.
The advice has to be "signed off" by Compliance, but only to show that I've done the research & due diligence.
Is there any reason for your question - do you think that they are risky then ??
Just to inform / remind people if they are moving around at the end of this tax year that Premium Bonds require a COMPLETE CALENDAR MONTH to elapse before they are entered into the draw.
In other words buy 31 March the bonds go into the May draw. Buy 1 April they don't enter the draw until June.
I wouldn't worry too much about the structured products within your portfolio. These will come under the "alternatives" portion.....and that will include the absolute return funds too. Being a SIPP it means Investec will invest not only in collectives (Oeics & Investment Trusts) but also ETF's, direct shares & other investment strategies. You will find that they might trade more than you expect & may not hold some of the more well known funds.
Looking at your portfolio I think a few of the OEIC finds are a bit old hat, like Fidelity special sits, Henderson European Select ops & the AXA funds......but you do have Findlay Park American & Fidelity Moneybuilder, which are decent funds.
A SIPP wouldn't be my product of choice , but that's maybe because it means you should be trading in & out of funds & strategies.....and that takes a lot of time & effort for the layman (hence why you've outsourced it to a DFM). Once in drawdown you may want to look at a more traditional approach & go for a plan with someone like Royal London.
meaning what? Move the money out of the SIPP and into? Would a 'plan' allow me the same flexability? Would it mean Mrs Large would still get the full benefit of it if I were to pass away?
YES.
Royal London offer a flexi-access drawdown plan - 5 Governed |Portfolios that get viewed & adjusted quarterly and specifically designed for those in "drawdown", Or you can have one of their 9 Governed Portfolios that are primarily used for those building up their pension fund, but can be used for anyone. Or Lifestyle portfolios (generally used for GPP's) or just use their fund range.
And the cost for this. Just 0.45% pa for portfolios in excess of £70k - 0.4% if in excess of £200k (or thereabouts).
so what is the difference between FAD and SIPP? Am I not already drawing-down from my SIPP?
I don’t have any particular view but I wouldn’t invest in them myself - they fail the 30 second ‘elevator test’ for a start.
They seem to be sold as a fixed income alternative, except in a crisis they become 100% correlated to equities at precisely the time you need diversification. And the fees are ridiculous....
I don’t have any particular view but I wouldn’t invest in them myself - they fail the 30 second ‘elevator test’ for a start.
They seem to be sold as a fixed income alternative, except in a crisis they become 100% correlated to equities at precisely the time you need diversification. And the fees are ridiculous....
As I said in my post, I dont use the income ones as firstly my clients have enough income (usually too much) and secondly any gains are subject to income tax & my clients are generally higher rate taxpayers.
I've mainly been using defensive ones, with potential gains made in a fallung market. Transferred money out of equity ISA's into these so if there is a drop in the FTSE then they may make gains in a SP......a bit like hedging.
Also dont think the fees are that bad, and luje in thd good okx days they are "hidden" inside the product, mainly taken off the "coupen" before it is set up.
I see from your username that you are not from these shores......perhaps you might be misunderstanding the exact nature of a UK structured Product. They are not packaged debt like junk bonds
Comments
Fundsmith Equity has been almost as good for me, even though it means I'm a shareholder in Big Tobacco :-(
Jupiter Europe has also done well for me, but whether now is the time to buy into such a fund, is a question you'd want to ask yourself.
You can also buy investment trusts on the platform, so if you fancy tech, I am in both the Polar Capital and the Allianz tech trusts
There are those who argue that buying good trackers would be a better bet, and I'm not sufficiently sure of the evidence to argue against that, but the Lindsell Train fund certainly makes a compelling case
The good thing about H-L is it has a pretty huge range. But I am not at all convinced by their "star" fund choices, reckon its all driven by promotional fees from the funds.
But hey....what do I know...
Anyway, as always the advice is make sure you read up, and are comfortable with your choice from your own perspective.
UK Equity - 21% (3 funds of 7%)
US Equity - 16% (2 funds of 8%)
Europe - 8%
Asia (inc Japan) 8%
Property - (2 funds x 5%)
Fixed interest- 37% (3x10% +1x7%)
Approx %'s as these things are a moving feast.....but should give you a picture.
Like Prague i have Lindsell Train both Global and UK, Also the Allianz Tech.
Fidelity ( so you may not be able to get it) Global Health, also L&G Global Healthcare.
BNY Mellon Long Term Global Equity
Rathbone Global Opportunities
Liontrust UK Growth
Fidelity Emerging Markets
Polar Capital Global Tech
My Suffolk Life SIPP, managed by Investec, is currently split as follows :
Equities 40.775%, Fixed Interest 28.543%, Alternative Assets 16.775%, Property 7.293% and Cash 6.614% and invested in the following :
It's fair to say that I decided I did not want to take any risks with my Portfolio, I want to retire in a couple of years when I'm 58 and the wife is 55, and these investments are going to have to sustain us into, hopefully, old age and so my Risk appetite was Low. However, any thoughts anyone??
nope
I LOL'd (almost liked) as your post stated "It's fair to say that I decided I did not want to take any risks with my Portfolio" and that your "risk appetite is low"- do Investec know you this? The fund highlighted I believe comes up in one of the, if not the highest category of risk.
If you are looking to retire in 2 years (and access the pension) then you need a discussion with Investec ASAP, I'm certainly not an expert but that portfolio looks far from a low risk/wishing to draw in a couple of years time portfolio. If we had a downturn post brexit etc etc you could see a lot of value wiped from your fund. Probably fine if you are 10+ years away from needing it and still contributing.
Ask your adviser to stress test your portfolio for a stock market crash of say down 25%.
Looking at your portfolio I think a few of the OEIC finds are a bit old hat, like Fidelity special sits, Henderson European Select ops & the AXA funds......but you do have Findlay Park American & Fidelity Moneybuilder, which are decent funds.
A SIPP wouldn't be my product of choice , but that's maybe because it means you should be trading in & out of funds & strategies.....and that takes a lot of time & effort for the layman (hence why you've outsourced it to a DFM). Once in drawdown you may want to look at a more traditional approach & go for a plan with someone like Royal London.
thanks. I will email my advisor and ask him about this particular fund and ask him to review my products in general.
I have already started accessing my pension by crystallizing a proportion last year and taking 25% of that tax free and plan to do the same for the next two or three years until my wife reaches 55 and we can access her pension too at which point we will decide what to do going forwards.
YES.
Royal London offer a flexi-access drawdown plan - 5 Governed |Portfolios that get viewed & adjusted quarterly and specifically designed for those in "drawdown", Or you can have one of their 9 Governed Portfolios that are primarily used for those building up their pension fund, but can be used for anyone. Or Lifestyle portfolios (generally used for GPP's) or just use their fund range.
And the cost for this. Just 0.45% pa for portfolios in excess of £70k - 0.4% if in excess of £200k (or thereabouts).
My clients that go into a Structured Product usually have used up their full ISA allowance (husband & wife) every year & have in excess of £250k in them. They may also have a General Investment Account (unit trusts to the over 40's) and/or Investment Bonds (but only for the basic rate taxpayers). That then doesn't leave much else to invest into. Usually it is only £20k -£25k that goes in & 95% likely to be a SCARPS plan, so that any gains can be used against their annual CGT allowance.
FCA guidelines for advisers say that no more than 10% of a clients "assets" should be invested into an individual SP & no more than 25% in total.
Typical ones that I have been using recently have been defensive ones, usually with a kick-out feature. Paying 7% pa with kick-outs after 2 years, starting at 100%, then 95%, 90%, 85% & finally 80%. Always backed against the FTSE.........don't like dual Index ones.
The advice has to be "signed off" by Compliance, but only to show that I've done the research & due diligence.
Is there any reason for your question - do you think that they are risky then ??
Just to inform / remind people if they are moving around at the end of this tax year that Premium Bonds require a COMPLETE CALENDAR MONTH to elapse before they are entered into the draw.
In other words buy 31 March the bonds go into the May draw. Buy 1 April they don't enter the draw until June.
so what is the difference between FAD and SIPP? Am I not already drawing-down from my SIPP?
They seem to be sold as a fixed income alternative, except in a crisis they become 100% correlated to equities at precisely the time you need diversification. And the fees are ridiculous....
I've mainly been using defensive ones, with potential gains made in a fallung market. Transferred money out of equity ISA's into these so if there is a drop in the FTSE then they may make gains in a SP......a bit like hedging.
Also dont think the fees are that bad, and luje in thd good okx days they are "hidden" inside the product, mainly taken off the "coupen" before it is set up.
I see from your username that you are not from these shores......perhaps you might be misunderstanding the exact nature of a UK structured Product. They are not packaged debt like junk bonds
....there’s also a counterparty risk angle but hopefully minimal post crisis.