As per the title, this topic references nothing specific - yet references everything, as it is an overall musing on the sub-portfolios of my family (and when viewed as a whole "the portfolio"). The sub-portfolios are three pairs of ISA, JISAs and SIPPs - each pair performs very similarly due to their near identical structures.
In the second calendar quarter of 2021, after a process lasting around 18-24 months, everything has been consolidated, moved into tax efficient (largely nil tax) structures and the major sales and purchases executed. The basic forms are
- ISAs 66/34 Equities/Bonds: MWY/VWRL/HDIV/VAGP
SIPPs 66/34 Equities/Bond: ATST/VWRL/BIPS/VAGP
JISAs 75/25 Equities/Bond: FCIT/VWRL/BIPS/VAGP
In addition to these
- I have a decent Final Salary Pension, currently maybe £15K or so per annum, plus a lump sum three times that, plus some other bits and pieces elsewhere, e.g. from my current employer and in another country which I can't bring to a UK SIPP
Mrs Newroad has an Aegon Blackrock Lifepath DC pension from her current employer, I'm guessing that's about 75/25 Equities/Bonds, plus various stock options
The kids also have MNP in their JISAs, which sits outside the above ratios as it is their grand-parental contribution from one side, it probably adds another 15% or so to each JISA.
Anyway, with all this now sorted and stable, I've started tracking accumulation units for each sub-portfolio as of close of play 30/06/2021 - twice per month (one end of month, one after each regular investment mid-month). Took a short while to set up first time, but is now very easy - each update just requires copying a row in a spreadsheet and updating one field. I chose £100 for the starting unit price for each unit - meaning percentage performance from that base is available on inspection. For anyone interested (thought it's a very short period - three months only - hence fairly meaningless)
- ISA's: Have been up as much as 4.48% but are now up only 2.01%
SIPP's: Have been up as much as 3.09% but are now up only 1.69%
JISA's: Have been up as much as 4.20% but are now up only 1.23%
As a consequence of having this accurate accumulation unit data available, I've now stopped monitoring the synthetic version of the sub-portfolios and am also looking forward to June 2022 - when VAGP will be 3 years old. At this point, it will start being available in the aggregated Morningstar Data available free from II.
What I've also only recently had the time to do is add our cash holdings into the mix, which has led to the following percentage ratios (Equity/Bonds/Cash)
- Me: 48/26/26
Mrs Newroad: 54/29/17
Child 1: 79/21/0
Child 2: 80/20/0
- Me & Mrs Newroad together: 52/28/20
Family Overall: 59/26/15
The relatively low equity percentage caught me by surprise - or expressed another way, the effect of the various cash holdings was greater than I intuitively expected. Yes, this is the "worst" point of the month for that measurement (i.e. just been paid and not yet done the regular investments) and I'll check again later in the month, but I'd only expect that to affect the numbers by a percent or two (we'll see!).
Clearly the kids ratios are fine, but I probably need to get mine and Mrs Newroad's up over time, so I'll start pushing up the target from 66/34 to 70/30, then gradually calibrate from there (likely with a view to get the equity component in the cash inclusive ratios to 66% or thereabouts).
As I said, these are mainly just musings and may not be much of interest to others, but if nothing else, will provide a reference point as to my point-in-time thinking when I look back.
Regards, Newroad