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My SIPP - Comments Welcome

A helpful place to also put any annual reports etc, of your own portfolios
Nexus5
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My SIPP - Comments Welcome

#386708

Postby Nexus5 » February 14th, 2021, 6:45 pm

General Comments:->

Started off investing my own SIPP around 2017.
Began with single name UK stocks, previously owned some shockers like AA Plc and Petra Diamonds and learnt pretty fast...!
2020 March was rough due to Financials/Oil & Gas/Real Estate exposures, although didn't sell during that period which was very helpful.
Gradually been improving the quality of the portfolio (less small caps, less single names, more investment trusts)
Big trends I am trying to tap into are renewable energy, hydrogen energy and Tech.
Own some bonds/prefs. Been very good to me so far.
Recently upped mining exposure via Blackrock World Mining.
Tend to be buy and hold now in this SIPP as I have separate IG Index accounts for more short term trading, Gold, Treasuries and US shares.
I use the AJ Bell regular investment capability to execute share purchases monthly at £1.99 ( a good facility I find).
Was previously with HL, but switched over all mine and family's accounts to AJB SIPPs and ISAs.
I find I am making less silly mistakes (dumpster fires like AA, taking profits too early), but I am always willing to learn.

Many Thanks

Investment                                                 Proportion of Total     Change (%) 

AerCap Holdings NV 2.40% -2.00%
AVI Global Trust Ord 2.30% 15.00%
Aviva PLC 2.20% -7.00%
Berkshire Hathaway Inc Class B 3.80% 16.00%
BlackRock World Mining Trust plc 0.40% -3.00%
BRUNTWOOD BOND 6% GTD SNR 25/02/25 GBP100 4.00% 0.00%
BURFORD CAP PLC 5% GTD SNR 01/12/26 GBP100 3.10% -7.00%
Burford Capital Ltd 1.30% -6.00%
Crest Nicholson Holdings PLC 0.70% -28.00%
Direct Line Insurance Group PLC 3.30% -12.00%
Dixons Carphone PLC 1.50% -44.00%
easyJet PLC 2.30% -28.00%
Edinburgh Worldwide Ord 2.10% 5.00%
General Accident PLC 7.875% PRF PERPETUAL GBP 1 4.40% 7.00%
HEYLO HOUSING Inflation linker 30/09/2028 GBP 2.60% 6.00%
Hiscox Ltd 1.80% -27.00%
IG Group Holdings PLC 3.20% -5.00%
INTERNATIONAL PERS 7.75% GTD SNR 14/12/23 GBP 3.30% -2.00%
iShares Emerging Mkts Eq Idx (UK) D Acc 1.20% 26.00%
iShares Global Clean Energy ETF USD Dist GBP 3.60% 44.00%
ITM Power PLC 1.20% 8.00%
JPMorgan Global Core Real Assets Ord 2.50% -3.00%
Keystone Positive Change Investment Ord 1.40% 1.00%
Legal & General Group PLC 2.00% 28.00%
Lloyds Banking Group PLC 9 1/4 % Non.Cum.Irrd.Pref.Shs 3.80% 11.00%
Pershing Square Holdings Ord GBP 7.20% 14.00%
Phoenix Group Holdings PLC 5.20% 7.00%
REGIONAL REIT LTD 4.5% SNR 06/08/2024 GBP100 3.90% 5.00%
Regional REIT Ord 1.00% -27.00%
Rio Tinto PLC 1.40% 1.00%
Riverstone Credit Opportunities Income 3.50% -15.00%
Royal Dutch Shell PLC Class A 2.50% -37.00%
Schroder BSC Social Impact Trust 1.40% 4.00%
Scottish Mortgage Ord 2.70% 40.00%
TETRAGON FINANCIAL ORD N/V USD0.001(GBP) 1.50% -25.00%
The Kraft Heinz Co 0.80% -39.00%
TP ICap PLC 0.90% -9.00%
Tullow Oil PLC 0.60% -58.00%
VanEck Vectors™ Video Gmng ETF (ESGB) 0.30% 21.00%
Vanguard FTSE 250 UCITS ETF 1.90% -4.00%
Vodafone Group PLC 2.70% -2.00%
WisdomTree Battery Solutions ETF USD Acc GBP 1.90% -3.00%

Moderator Message:
Table formatted using tool provided.
TJH

WickedLester
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Re: My SIPP - Comments Welcome

#386814

Postby WickedLester » February 15th, 2021, 9:15 am

Big trends I am trying to tap into are renewable energy, hydrogen energy and Tech.


I think this is a smart move for the long term and I may start to look for some investments in this area myself for my SIPP.

The only investment I have in common with you is Aviva which looks good value.

ADrunkenMarcus
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Re: My SIPP - Comments Welcome

#386889

Postby ADrunkenMarcus » February 15th, 2021, 12:30 pm

Hi Nexus5,

Thanks for sharing.

You have some good investments there including Scottish Mortgage (SMT). All I would say (and I admit I am biased as I have a VERY concentrated SIPP) is you may wish to keep an eye on the number of holdings. For example, SMT is 2.7% of the portfolio and it has doubled over the last year or so. Even if it doubles again this will only add 2.7% on today's portfolio value. However, if you have larger positions then you will benefit more fully from their growth.

There is a danger with a large number of holdings that you incur fees and get essentially a passive index return but with the cost of active management subtracted from it. Dealing or reinvestment costs alone, for example, could end up being quite substantial depending on position sizes - although I note you're using a cheap monthly dealing arrangement which is positive.

Best wishes

Mark.

Dod101
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Re: My SIPP - Comments Welcome

#386891

Postby Dod101 » February 15th, 2021, 12:38 pm

I do not know many of these but dealtn's point is very valid. You have about 43 holdings. I have 31 holdings in total and find that quite enough to monitor.

Can you tell us what you mean by Change (%) Is it over your holding period, change in the last year or what?

Dod

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Re: My SIPP - Comments Welcome

#386895

Postby AsleepInYorkshire » February 15th, 2021, 12:53 pm

Dod101 wrote:I do not know many of these but dealtn's point is very valid. You have about 43 holdings. I have 31 holdings in total and find that quite enough to monitor.

Can you tell us what you mean by Change (%) Is it over your holding period, change in the last year or what?

Dod

Hi,

May I very sensitively reinforce Dod's comments please. Can I ask you to file it under tough love advice. I am not sure it's possible to hold that many stocks and completely understand each company you've invested in. I think it would be far more efficient to buy funds. However, that isn't a criticism, simply an observation and you may find the workload and information gathering cathartic?

AiY

Nexus5
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Re: My SIPP - Comments Welcome

#386924

Postby Nexus5 » February 15th, 2021, 2:09 pm

Really appreciate all the feedback, all very valuable.

The % change is the percentage change vs where I bought them initially. So its the % return since purchase.

Yep I will be consolidating my holdings into a more concentrated bunch, but will still hold onto my bond positions.

Take for example the FTSE 250 tracker I bought during the UK Election. That was a thematic type trade which then got crushed in the COVID19 sell-off! However, once it returns back to flat or small positive I'll probably exit and put into one of my existing investment trusts.

Thanks and will share my ISA in due course. Been a useful exercise.

Best.

dealtn
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Re: My SIPP - Comments Welcome

#386928

Postby dealtn » February 15th, 2021, 2:16 pm

Nexus5 wrote:Really appreciate all the feedback, all very valuable.

The % change is the percentage change vs where I bought them initially. So its the % return since purchase.

Yep I will be consolidating my holdings into a more concentrated bunch, but will still hold onto my bond positions.

Take for example the FTSE 250 tracker I bought during the UK Election. That was a thematic type trade which then got crushed in the COVID19 sell-off! However, once it returns back to flat or small positive I'll probably exit and put into one of my existing investment trusts.

Thanks and will share my ISA in due course. Been a useful exercise.

Best.


Why are you "price anchoring"? It is irrelevant what your purchase price is.

When your position gets back to parity, or a small profit, how will you determine what to buy next and what is a good price? What if, say, the FTSE tracker returns 20% to get back to "profit" will you look at how far your new alternative has performed over the same time period? Will you rule out any that have risen >20% over that time, or those that have risen <20%?

It's really difficult to do but price anchoring around past prices, be they "peaks" or "purchases" is a waste of energy and unproductive. Just try and be invested in what you want, and have chosen, regardless of where they have been, it is only where they are going that has relevance.

Nexus5
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Re: My SIPP - Comments Welcome

#386953

Postby Nexus5 » February 15th, 2021, 3:25 pm

Yep I knew this would be a pushback to the FTSE 250 comment. The reason I am anchoring in this situation only here is to reduce down the number of holdings, and also because I don't have an especially strong view on the FTSE 250.

JohnW
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Re: My SIPP - Comments Welcome

#387105

Postby JohnW » February 15th, 2021, 10:59 pm

Nexus5 wrote:The % change is the percentage change vs where I bought them initially. So its the % return since purchase.

You're tracking returns closely. Are you tracking costs as closely: trading costs; buy/sell spreads; taxes; management fees and any others? If so, any overview summary data on that?

Urbandreamer
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Re: My SIPP - Comments Welcome

#387110

Postby Urbandreamer » February 15th, 2021, 11:18 pm

Nexus5 wrote:Yep I knew this would be a pushback to the FTSE 250 comment. The reason I am anchoring in this situation only here is to reduce down the number of holdings, and also because I don't have an especially strong view on the FTSE 250.


Regardless of that, deltn's post is still the right way to view it. Why not simply sell XYZ and top up? Why wait. Why not sell and invest in something else?

The issue is not the FTSE 250, but why not simply put the money elsewhere.

Though to reiterate deltn's post, it's not easy. It's taken me many years and it's still something that I have to work upon. Indeed I find myself putting any decisions off for years, then having a tidy up of many holdings, that I should honestly have done some years ago. Hint here, just why is it "many holdings" that I act upon. Because I'm really bad at dealing with this bias is of course the answer.

I don't know how often you check your portfolio, but if it's as often as I do, there is a mistake that's never mentioned. Regular checking can of course lead to over trading. However it can also lead to the reverse. It may be worth setting a date in the diary to look at the portfolio "root and branch", to see if anything needs pruning.

Hariseldon58
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Re: My SIPP - Comments Welcome

#387242

Postby Hariseldon58 » February 16th, 2021, 5:51 pm

The comments about too many holdings... its easy for a large collection of holdings to become unbalanced, however if you decide you are having a collection of mini portfolios and each consists of several grouped/themed holdings, the only rational objections is trading costs and inability to monitor them.

Purchase costs can be very low these days circa £5 to £10 and for 40 holdings on a six figure portfolio it's a small percentage, monitoring for investment trusts is a leisurely perusal of annual reports and occasionally monitoring performance.

The concentration argument to focus on the best ideas, well that's easy after the event, not so easy before...a rational decision may be to have a mini portfolio of Smaller Companies , you may decide to have one Investment Trust but why not pick 3 or 4, you won't have the best performance but a dispersion of managers spreads the risk.

Shelford
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Re: My SIPP - Comments Welcome

#387413

Postby Shelford » February 17th, 2021, 11:02 am

Interesting list. Immediate thoughts:

-sensible choice over SIPP home which will save you money in due course

-the list of shares looks pretty random to me. I also ended up at your stage with a mad aunt's attic of a portfolio. It needs a clear out.

-you need to consider the metrics by which you measure success. Overall return? Rising level of income? What is your benchmark index against which you measure your performance?

-what is the asset allocation policy behind your portfolio? It is not clear from your post what this is. The single biggest error for novice investors is not to read up on this. It is the only 'free lunch' in personal finance, other than Lemon Fool. Check out the Monevator site where there's lots of good advice. You might also take a look at his low cost tracker posts.

-you are using ETFs (good - low cost etc), but I'd expect to see bigger holdings of 'core' ETFs such as World Index VWRL or similar, rather than the latest fashionable fad for someone at your stage

-cf. point 1, what is the mix of UK to international shares. Fixed income to overall portfolio size? You have a sizeable holding in RGL, which is a relatively small REIT. It's not a bad choice (I also have it), but there are others.


In your shoes, I'd be doing a root and branch review, having decided on your asset allocation. I have a similar number of holdings as you, but the majority are investment trusts or bigger ETFs.

JohnW
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Re: My SIPP - Comments Welcome

#387847

Postby JohnW » February 18th, 2021, 9:47 pm

Shelford wrote:-what is the asset allocation policy behind your portfolio? It is not clear from your post what this is. The single biggest error for novice investors is not to read up on this. It is the only 'free lunch' in personal finance,

or is it diversification?

Nexus5
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Re: My SIPP - Comments Welcome

#387866

Postby Nexus5 » February 19th, 2021, 12:42 am

I review the portfolio weekly and send a summary to an old acquaintance highlighting weekly / monthly moves and thoughts. Also put in actions re proposed trades for the week ahead (if any).

I really only began doing this review during March 2020 ( when the portfolio fell over!). It's been useful since I have gradually tried to being a portfolio approach to it rather than a random arrangement of single name line items.

Asset allocation policy is diversification but I don't have a formal policy to be frank. Way I look at it is to see what im adding to the portfolio and assessing if it over-exposes me to any sector/type e.g cyclicals. I hold the bonds to balance up the equity exposure but it's not govt bonds so will be more volatile. With the recent sell off in gilts, it might be an idea to allocate more to govt bonds to bring me up closer to 30% bonds say. I will look at the monevator website.

In response to one of the questions, no I don't track charges that closely at the moment but it's on my to do list.

Am comfortable with regional REIT but it's a hold, not an add or sell right now for me anyway. My biggest holding is in the RGL bond, which I am very comfortable with and purchased in the 80s.

I might have said before but the plan is to be in more investment trusts and ETFs. But even within that I have only recently upping exposure to Baillie Gifford funds and the BlackRock world mining trust. But I have other trusts such as the AGT and Pershing Square that performed really well in 2020 and I'm happy to keep.

Cheers

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Re: My SIPP - Comments Welcome

#387883

Postby jackdaww » February 19th, 2021, 8:35 am

Nexus5 wrote:I

I might have said before but the plan is to be in more investment trusts and ETFs. But even within that I have only recently upping exposure to Baillie Gifford funds and the BlackRock world mining trust. But I have other trusts such as the AGT and Pershing Square that performed really well in 2020 and I'm happy to keep.

Cheers


==================================

quite a few on here seem to be moving this way .

the long affair with high yielders is waning perhaps , towards better overall returns ?

8-)

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Re: My SIPP - Comments Welcome

#387935

Postby JohnW » February 19th, 2021, 11:45 am

Nexus5 wrote:Asset allocation policy is diversification but I don't have a formal policy to be frank

Yes, a good asset allocation policy might put 50% in equities, 20% in bonds, 10% in commodities, 10% in real estate, 10% in foreign currency... we could go on.
But if the 50% in equities was one stock, the 20% in bonds one bond, the 10%...we could go on. It would be sadly lacking diversification no matter how optimal the asset allocation was.
You'd be immeasurably better of with 2 asset classes (little diversification there), equities and cash for example, but the equities were 3500 in a global tracker or even a diversified active equity fund. No need to confuse asset allocation with diversification, as easy as it is to do.


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