IT SIPP Horrific

[Newroad]

Hi All,

To continue my occasional update and add a few new details (from the 20th February to as of yesterday) ...

My main regret is that I "guessed" sub-optimally which way around to allocate the High Yield Bond Investment Trust choice. It was always going to be those three, but it would have been better if the kids got HDIV and my wife and I got the other two. However, it practise, it was always going to be the kids getting IPE or CMHY, as they are managed by the same team - so to diversify, my wife and I were going to get HDIV plus one of the two.

INDICES:
S&P500 - down about 18.7%
FTSE100 - down about 21.0%

ISA:
WTAN - down about 20.3%
HDIV - down about 2.1%
Total = down about 11.2%

SIPP:
ATST - down about 21.7%
IPE - down about 6.9%
Total = down about 14.3%

JISA(s):
FCIT - down about 20.7%
CMHY - down about 7.5%
Total = down about 16.3%

Wife:
MYI: down about 18.1%

On another note, there has been talk on the forum about not panicking - in simple terms - if one is living off dividend payments (as opposed to some form of capital draw down). This is relatively true in so far as it goes, but I don't think this is going to be a V-shaped recovery and I suspect dividend payments will come under pressure - even from some consistent long payers - over the next year or two. As it is both a supply and demand shock, I think the new starting point for world growth, even when this all bottoms out, will be from a structurally lower place.

Though I'm not attempting even remotely to draw a parallel in the number of deaths with the Black Plague, remember the effect it, as a serious economic shock, had on the Feudal System in many European countries - it broke it. As some level, this is significant enough to break the previous economic orthodoxy too.

Notwithstanding all the above, I have neither added to nor withdrawn funds yet from the market - but I will be buying at some point - I reckon in 3-6 months if I had to guess.

Regards, Newroad

[jaizan]

Totally bewildered with some of these losses. Merchants Trust down pretty much 20% now. Getting a bit silly.

Markets go up and down. Every few years prices drop by 20% or more.

If you are not needing to access the funds for retirement imminently, it's no problem.

If you have many years until retirement and are still making regular contributions, it's almost a cause for celebration, as your money buys much more now than it did in January.
Keep up the contributions, shut down your PC and go for a walk.

[Newroad]

Hi All,

It's been a little while since I've done one of these (from the 20th February to as of Friday) ... now rounded to the nearest 0.1%

INDICES:
S&P500: -19.3%
FTSE100: -22.2%

ISA:
WTAN: -24.4%
HDIV: -11.7%
Total: -18.0%

SIPP:
ATST: -19.1%
IPE: -15.3%
Total: -17.2%

JISA(s):
FCIT: -20.0%
CMHY: -14.5%
Total: -18.5%

Wife:
MYI: -21.5%

So, all in all, an OK to modestly good relative performance. The interesting thing was, during the period, the volatilty of the bond investment trusts. Had the Fed not stepped in and bought non-sovereign bonds, then the result might well have modestly bad instead - maybe even poorer.

In another thread, you will have see that I have been considering moving part into ETF's most likely the following two (for which I give figures over the same period, even though I did not hold them)

For equities - VWRL: -14.6%
For bonds - VAGP: +3.6%

Thanks to all those who helped me with these. I'm in the process of re-balancing as we speak, but my target equity/bond mixes for these going forwards are

ISA: 50/50
SIPP: 50/50
JISA: 70/30
Wife: N/A (in effect, whatever the balance within MYI is)

For the bond component, it is likely to be 50/50 with the existing Bond IT and VAGP. I've done this for the SIPPs and almost done it for the JISAs (it was hard to offload the CMHY due to a wide bid-offer spread). The ISA is next but I'm in less of a hurry for that.

For the equity component I'm currently undecided, more of a watching brief, but if I do switch it will also be 50/50 within that - existing global equity IT and VWRL.

I hope this has been of some interest - but in any case, it is useful to formally revisit my own thinking and performance in a black and white way.

Regards, Newroad

[ffacoffipawb64]

After the dust has settled somewhat, my SIPP is down 25% from the peak in January.

Was down 36% at its worst.

Havent a clue what i am doing. I have sold one IT so I have 3 years pension cash in my SIPP to draw down.

Other than that one sale I am leaving well alone as I may do more harm than good doing any more fiddling with my holdings.