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Stuart Leard
Posted: 05 April 2024 16:34:01(UTC)
#1

Joined: 07/01/2020(UTC)
Posts: 2

Hi .. I have a relatively small Sipp for my age (55) of around £125k although have a couple of final salary pensions which are ok I’d be interested on thoughts of my current allocation:
Fidelity world index 20%
L&g international index 18%
UBS s&p500 index 15%
Jupiter Merlin balanced 7%
Artemis income 6%
Vanguard global small cap index 5%
Marlborough multicap growth 5%
Blackrock European dynamic 4%
Jupiter Asian income 4%
Schroeder Asian alpha 4%
Jpm global equity income 4%
Fidelity global dividend 4%
Brown advisory us mid cap 3%
Figures are rounded up or down to make it easier
TJL
Posted: 05 April 2024 18:00:34(UTC)
#2

Joined: 14/03/2011(UTC)
Posts: 1,630

Initial reaction would be to wonder if some of them might be doing the same job in your portfolio, and that there might therefore be some scope for simplification and consolidation.
But that is without any research in relation to any of them individually, or how they add up together as a portfolio.
Edit: Depending on which platform you are with, are they all earning their inclusion in your portfolio from a fees perspective, balanced against all other considerations (Jupiter Merlin Balanced for example - 1.39% according to HL)?
Tim D
Posted: 05 April 2024 18:38:26(UTC)
#3

Joined: 07/06/2017(UTC)
Posts: 8,883

What's your plan for that pot? Draw an income from it starting at some age? Convert it to an annuity? Leave it to heirs 'cos the DB pensions will provide you with more than enough income? Use it to bridge a gap between early retirement and the DB pensions kicking in?


DIY Investing
Posted: 06 April 2024 20:13:07(UTC)
#4

Joined: 29/09/2018(UTC)
Posts: 3,827

Thanks: 2322 times
Was thanked: 10683 time(s) in 3135 post(s)
No offence but I think it looks a bit messy with a fair bit of duplication. That said, it isn’t the worst portfolio I’ve seen, it won’t get you absolutely destroyed.

Looking at it, it seems you want a core made up of generic market cap weighted index funds, some ‘equity income’ (value exposure), a bit of small cap and a bit of emerging markets. Would that be a fair assessment?

If so, I think that is entirely reasonable, but it doesn’t have to be as complicated or as expensive (lots of active funds just sort of giving you the average minus the high fees).

I reckon you’d benefit from a basic plan, even if it is approximate. Just an example, but looking at you portfolio this might work:

70% global cap weighted (blend)
15% global income (value factor)
7.5% small cap (Size Factor)
7.5% Emerging Markets

You could just use a cheap tracker for each. If you feel better splitting the 70% cap weighted over 2 funds that would work. I might do something like:

35% Fidelity Index World
35% L&G International Index
15% VHYL/VHYG
7.5% Vanguard Global Small Cap Index
7.5% Fidelity Index Emerging Markets

Five funds, lots of cost savings which will compound over time, similar behaviour to your current portfolio.
9 users thanked DIY Investing for this post.
Guest on 07/04/2024(UTC), Lesley J on 07/04/2024(UTC), wydffart on 07/04/2024(UTC), William P on 07/04/2024(UTC), Guest on 07/04/2024(UTC), Bellabeck on 07/04/2024(UTC), Tim D on 07/04/2024(UTC), dlp6666 on 07/04/2024(UTC), bearcub on 10/04/2024(UTC)
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