JNC3 wrote:
Similar asset allocation to myself. - I see like me you are holding no (or few Bonds). I consider that my DB pension is acting like a safe Government Bond so I see no need. Is you UK equity portfolio an income (HY) type portfolio ?
NS&I linkers and DB pension are, IMO, better than bonds or gold because there is zero volatility but similar long-term returns. Unless you catch the bond or gold market at the beginning of a long bull run but I don't think we're at that point currently, probably the opposite.
Equity priorities are in the following order;
1. Diversification, including sector diversification.
2. Equal weight on purchase
3. Long=term buy and hod
4. Selection from FTSE 350
5. Dividends
So not strictly HYP, as divis are down at no.5, but a lot of similarities. I do hold a few low yielders.
A quick word on valuing DB pensions. This will depend on several factors, including any index linking and age of recipient, but is probably higher than most realise. At age 60 and with rpi linking I would suggest value is 39x annual payment. This is from looking at best buy annuity tables.
BoE