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GIA/ISA and SIPP positions

Posted: March 2nd, 2021, 8:44 am
by Indig0
Over the past couple of years, I've rationalised my holdings down to a current set that I hold across my GIA, ISA, and SIPP accounts, and I was hoping for any feedback or suggestions of possible changes to consider:



I have around 20 years before I can access my SIPP, so quite happy to take on some risk there (£300k value at present with around £20k added per year). I'm also aiming for capital growth in my GIA and ISA accounts so that in 10 ish years I could consider starting to take some of this out to fund some living costs if I did want to work less (£450k value at present with another £30k added per year).

In terms of my reasoning for the current mix of positions:

- Overweight China as I feel this presents good growth opportunities over the next couple of decades
- A decent position in small and medium cap stocks due to long term growth focus (plus medium/high risk tolerance)
- Fundsmith and Rathbone in equal allocations as both have global outlook but different approaches, so hedging bets as to ongoing performance

I did think about having two sets of holdings: keeping the above mix in the SIPP, and another set across GIA and ISA, however other than possibly buying into BG Managed there was nothing that really caught my eye so I thought it easier to just manage the whole amount together.

Re: GIA/ISA and SIPP positions

Posted: March 2nd, 2021, 9:04 am
by Padders72
If and when the US bubble finally bursts and the market tanks, that concentration of 'hot' picks, by which I mean stuff that has risen sharply in the past year and heavily BG biased might suffer more than a more balanced WW spread. You will for instance have a fair chunk of Tesla and FAANGs in there I would think. Just an observation! Of course if the US tanks, everywhere tanks so my comment might be a case of shuffling deck chairs on the Titanic, but there is some merit to the suggestion that the UK and Euro markets are undervalued, while the US is likely the opposite at present.

Re: GIA/ISA and SIPP positions

Posted: March 2nd, 2021, 9:48 am
by dspp
I second that point. Would you feel happy taking a significant direct exposure in Tesla and Amazon ? If not why are you comfortable taking a significant indirect exposure ? (and I say that as a Tesla shareholder, though not in any great respect an Amazon one)

regards, dspp

Re: GIA/ISA and SIPP positions

Posted: March 2nd, 2021, 1:23 pm
by Indig0
Thanks, both - yes valid points.

Looking at the top 10 holdings across the portfolio:



So while both Tesla and Amazon feature in the above, I don't feel the whole portfolio is overly dependant on these, or indeed any others as a single holding. I am also very happy to leave it up to the fund managers to decide when best to cut some of their positions (as indeed BG have been doing of late with TSLA).

Re: GIA/ISA and SIPP positions

Posted: March 9th, 2021, 8:23 am
by Padders72
I remembered this thread last night when I was pondering the state of my thankfully modest SMT and China based holdings. I would imagine the value of the portfolio shown above looks drastically different today just a week or so later. You did say you were in for the long term so hopefully there is no real harm but events have shown that it is indeed a pretty volatile selection as I suspected.

Re: GIA/ISA and SIPP positions

Posted: March 10th, 2021, 5:44 pm
by Indig0
Hey Padders - yes, there's been a fair bit of movement of late but I generally consider performance on a monthly basis as a minimum as there is just too much noise on a daily and weekly timescale. Right now it's down 13% over 1 month, however up almost 13% over 6 months and still 56% over the past year.

I do monitor the FTSE Global All Cap as an index comparator and as long as my mix can keep ahead of this I'll keep my tweaking to a minimum, although I'm sure over time there will be a gradual move into something with less volatility as you say.

Re: GIA/ISA and SIPP positions

Posted: March 12th, 2021, 8:00 pm
by MusingMarket
Indig0 wrote:I have around 20 years before I can access my SIPP, so quite happy to take on some risk there (£300k value at present with around £20k added per year).

I'd be worried about the lifetime allowance. 7% growth p.a., without adding funds, would take you over the current lifetime allowance limit. Given that the government have just frozen the lifetime allowance at £1,073,100 for the next four years I'd consider having lower volatility/safer performing assets in my pension and use an ISA or even general account (where you can offset losses and use the CGT allowance) for riskier assets.