Financial & Investments squawkery

Largely trying to understand options to change my IFA and what to do with my SIPP. Summary so far - no consensus amongst the advisors but plenty promise of some nice set up fees for their efforts :triumph:

Just copy the investment trust portfolio from money observer. I’ve just done pretty much exactly that with my wife’s. I moved hers to the A J Bell platform (formally Sippdeal where mine has been for 12+ years). I mixed some of their adventurous choices with some more cautious ones). Hargreaves Lansdown platform would be an alternative. Or choose a few Ut’s from the HL wealth 150.

Foreign & Colonial
Allianz Technology
Rights & Issues
Temple Bar
Baillie Gifford Shin Nippon
Jpm emerging mkts
Edinburgh Dragon
Black rock Throgmorton
Fundsmith (not an IT, a UT not recommended by money observer).

You can choose institutional funds on the a j bell platform. The average amc is something like 0.5% or 0.7%. Platform charges are low too.

I was as IFA for a few years inbetween Law. They’re just guessing mostly. I saw a portfolio managed by a stock broker last week for a Trust. I was pleased to see that it contained about 3 of the above holdings.

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They all sound like outcasts from the Hogwarts glossary

Alternately, buy a lottery ticket and go down the pub.


Can’t see the point of Trusts (particularly closed end Trusts) in a world where ETFs are available. This is particularly the case given the potential for Brexit related turmoil in the forseeable future. Wouldn’t want to be trapped if the trust you invested into suddenly decides/needs to stop redemptions as many REITs did the last time the shit hit the fan.

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Yup. Active vs passive is a big debate. Timing the market seems impossible to me so I just sit out the dips.

Plus using Fundsmith or Marlboro spec sits as examples - they’re up about 200% over approx 5 years. I’m not sure an etf would have done as well. Maybe it would I don’t know. Plus like I say if you buy the institutional funds the amc’s are so low it’s not an issue.

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John Baron’s articles and recomendations in the IC are worth looking at.

Only if you don’t understand/read or chose to ignore the evidence. :smile:

I take your point about riding out the dips. But if the shit hits the fan and your rainy day happens on the same day it is trivial to get out of an ETF at the prevailing price. The same is not true of a trust, particularly if redemptions are closed. You can ride the dips in any investment if you are sufficiently liquid. Trusts don’t, in my view, compensate you for the additional aggro adequately. YMMV.

I can’t see the point in trusts myself. Haven’t used them personally or professionally for over a decade having nearly had a loss in 2007.

Isn’t the evidence based on including all the totally shit funds and zombie funds? I.e not the consistently top performing managed funds? I think what you say about withdrawals being stopped only applies to commercial property funds (which I don’t invest in anymore). An investment trust is a share which you can sell anytime (as long as there’s a buyer).

Here’s how Fundsmith stacks up -

Sep 2018 2018 to 28.9.18 2017 2016 2015 2014 2013 Inception to 28.9.18 Annualised to 28.9.18
Fundsmith1 0.0 +13.0 +22.0 +28.2 +15.7 +23.3 +25.3 +308.8 +19.5
Equities2 +0.2 +9.4 +11.8 +28.2 +4.9 +11.5 +24.3 +157.6 +12.7
UK Bonds3 -0.8 -1.2 +1.4 +6.5 +1.0 +10.0 -4.3 +32.6 +3.6
Cash4 +0.1 +0.5 +0.4 +0.5 +0.6 +0.5 +0.5 +4.9 +0

1 T class accumulation shares, net of fees priced at midday UK time, source: Bloomberg. 2 MSCI World Index (£ Net) priced at close of business US time, source: 3 Bloomberg/Barclays Bond Indices UK Govt 5-10 yr., source: Bloomberg. 4 3 Month £ LIBOR Interest Rate, source: Bloomberg.

Those Fundsmith figures are after charges. Looking at it now this is one of my expensive funds - 0.95% for the institutional class. Still seems worth it to me. I’m quite happy to pay for a team of world class analysts / managers. Plus I don’t want to hold the entire FTSE or whatever index, there’s always some dogs.

I’ve never been able to access IC stuff as it seems to require a subscription.

Yes it does. I get paper copies 2nd hand from a family member, which is nice.

To do otherwise is to induce bias.

You sound like Keith now.


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I was reading that! You are a professional whereas I am an amateur investor. If I bought etfs I’d just buy an index. I don’t know about what you are talking about in terms of narrowing etfs. I dont have that expertise. I just about have time to pick 10 funds.

I don’t know why you deleted that it was fine. Any tips?


I read it as well

I looked at the words, which were mostly English, but arranged in a form of prose that I found utterly incomprehensible.

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Maybe @htm_1968 can re-post, as I find myself perilously close (18 months) to having to do the same with my early pension.

I am not licenced to provide advice or tips. I’ve recently sold my share of a Funds Management Business to my surviving partners. However, I am not, and never was a funds manager. I provided technical advice on the strategic side. I am really not allowed to discuss the business in general, or my side in particular. I came close to doing last night so I deleted my posts.


For my pensions (I have three, which I consolidated down from 5), I have invested 35% in USA equities (which have done very well), 35% in Far East growth (high-ish risk) which have done well and the rest 30% in a mixed medium risk UK/European equities (which have done meh). Interestingly this was not the advice I was given, I was prompted 5 years ago to go for Euro & UK equities. IFA hmmmm. If you get a good one you are lucky.

In the last 5 years my US equities have gone up 103%, maybe it won’t continue (as the $ rate is included in that rise), but it’s shit loads better than UK at 36%. It is my personal view that Euro equities are over valued and Far East under valued. US equities are going to go on a 3 year rise I think. I tend to aim for Technology stock based.

All my own views for my investments.