SIPP review. Looking for Asia/Pacific exc China IT.

[Peter1B1]

Hi

Reviewing two family SIPPS ahead of the new Tax Year and am surprised to expect them both to jump beyond Lifetime Allowance, well ahead of retirement dates. After little more than ten years investing at the minimum £3500pa, this is both gratifying and challenging. Gratifying in that starting early has unleashed the power of compounding; challenging to avoid 55% tax on eventual excesses over Lifetime Allowance (an inflation estimate factored in).

The investment stance is deliberately toward risk. Overall CAGR assessed at 13%. Best performer is Scottish Mortgage but several others also exceeding 20% pa. I am switching out of four lower performers. I'm reluctant to manage risk downwards at this relatively early stage; but am likely to stop 'feeding' the SIPPs and switch new money to building high risk ISA pfs.

I'm fairly happy with the distribution of ITs and investment focus but want to anticipate probable directions of future economic growth (IMHO). The recent Integrated Review signals the growing importance of Asia and I am likely to de-emphasise US a little - though not tech. I have a very queasy feeling towards China and wish to avoid it, beyond what is picked up in other ITs. I have India through JP Morgan Indian IT which I may reinforce, even though current performance is low.

So I will appreciate recommendations for a growth-only, higher risk (including private equity), 'Asia/Pacific excluding China' IT. Japan content welcome.

Thank you for your consideration and thoughts, Peter1B1

[Peter1B1]

Attempting to answer my own questions, it seems that there aren't any (?) Asia/Pacific ITs that don't have exposure to China. And that Japan is considered a developed economy so doesn't get lumped with less-developed/emerging markets in 'Asia'. Well, you can see how much I know about that regional investment profile!

My front runner so far seems be Pacific Horizon from Baillie Gifford which has a lower Chinese content at around 30%. Performance has been strong, though this would result in further concentration in BG. Another performer appears to be Nomura Asia-ex-Japan High Conviction with concentrated and very active selection: that would probably fit as well but seems not to be available on UK platforms - listed in Ireland.

A search of LemonFool gives 0 return for the Nomura: does any Fool know if this can be acquired in UK? Or do I add it to my short list of 'wanna buys': Schiehallion (another BG), and ARKK?

Wishing, and hoping, and planning, and dreaming....

Peter1B1

[77ss]

Attempting to answer my own questions, it seems that there aren't any (?) Asia/Pacific ITs that don't have exposure to China. And that Japan is considered a developed economy so doesn't get lumped with less-developed/emerging markets in 'Asia'. Well, you can see how much I know about that regional investment profile!

My front runner so far seems be Pacific Horizon from Baillie Gifford which has a lower Chinese content at around 30%. Performance has been strong, though this would result in further concentration in BG......

Peter1B1

You might look at Schroder AsiaPacific - SDP. 6% in China, last time I looked, but 29% in HK - I am really uncertain how decoupled these two markets are.

Not as strong a performer as PHI, but still pretty good - and less volatile. 7% discount.

I hold both. Both have a decent slug in India which I wanted.

[mc2fool]

Attempting to answer my own questions, it seems that there aren't any (?) Asia/Pacific ITs that don't have exposure to China. And that Japan is considered a developed economy so doesn't get lumped with less-developed/emerging markets in 'Asia'. Well, you can see how much I know about that regional investment profile!

My front runner so far seems be Pacific Horizon from Baillie Gifford which has a lower Chinese content at around 30%. Performance has been strong, though this would result in further concentration in BG......

Peter1B1

You might look at Schroder AsiaPacific - SDP. 6% in China, last time I looked, but 29% in HK - I am really uncertain how decoupled these two markets are.

Not as strong a performer as PHI, but still pretty good - and less volatile. 7% discount.

I hold both. Both have a decent slug in India which I wanted.

The outperformance looks to be mostly last year.


https://uk.advfn.com/stock-market/london/pacific-horizon-investment-PHI/share-price

[Peter1B1]

Thanks both. The Schroders fund is quite steady and 20% 5-yr CAGR not to be sniffed at. Schroders appears more index-oriented; maybe both funds would be the sensible approach, as you say.

Balancing the India proportion: I guess I leave that to the fund manager and not go deeper into the single economy off my own bat. I need a Japan fund to complete the 'Asia/Pacific' gap in the pfs. This is an important review/'mid-course correction' for the SIPPs, as they appear to reach viability on their long-term journey towards supporting retirement. Your input appreciated. Peter1B1

[Shelford]

Japan: take a look at Baillie Gifford's offerings. I also have JP Morgan smaller cap IT which has done nicely over past couple of years. As I have zero interest in finding out more about the Japanese small cap market, am prepared to pay the performance charge to get access as small caps not well covered by index funds. Otherwise I am increasingly going for ETFs.

[everhopeful]

Aberdeen Standard Asia Focus has 9% in HK but nothing directly in China. It is small caps ex Japan. 11.5% discount.