Recommendations for S&S ISA

[Bullionaire]

Hi all,

 

I opened a stocks and shares isa at the end of the last tax year with Fidelity (via cavendish). It's doing ok so far with an 8.6% increase on average across all my funds. Only China in the red for me at the moment! 

 

I was wondering if anyone had any recommendations for good funds that I should look into investing in. I'm trying to stick to passive funds, buy I have got some active funds in there as well at the minute (and one etf)

 

Cheers

[Pritchard]

Whatever i say.
Whatever anyone else says.

''everyone is an expert'' . take what we say with salt!


i used to use Fiedelity. for reasons, i got fed up. I'm using Hargreaves now. Much better. and the phone app is great.

I self-pick funds and stocks. i have a separate account for each, (for financial disipine when it comes to allocating money for my own choices of stocks - usualy AIM - and those of a fund).
Fund wise, these my are current picks. I stick with 10. If an '11th' takes my fancy, i will sell one of the current 10.

 

fund | charge | 5yr growth
1. JPM Asia Growth Fund C - Net Accumulation 0.9% charge | 13%
2 Janus Henderson China Opportunities Fund I Acc 0.86% | 18%
3 Man GLG Continental European Growth Fund Professional Accumulation Shares (Class C) 0.9% | 18.72%
4 Unicorn Mastertrust B Inc 0.85% | 12%
5 Baillie Gifford Global Discovery Fund B Accumulation 0.79% | 19.5%
6 Baillie Gifford Emerging Markets Growth Fund B Accumulation 0.79% | 10.6%
7 Jupiter UK Smaller Companies Fund I 1.03% | 20.6%
8 Baillie Gifford American Fund B Accumulation 0.52% | 21%
9 AXA Framlington Biotech Fund GBP Z Acc 0.82% | 16.26
10 Polar Capital Funds PLC - Polar Capital Global Technology Fund I Income GBP 1.16% | 24.8%

Total rounded - 17.3% growth, 0.85% charge.


Notice i dont have any overlaps in fund area. i took time to chose the best performers / costs from each of my chosen sectors. This info above is now dated in terms of the figures, but its not yet due its yearly review.

As for the active/passive, i would personally argue those terms (in fact, i HATE those terms. should be banned from the industry). A Passive fund is by definition an Index fund (ie, track FTSE 100). But, if you are buying an 'Active' fund, such as any of the above, you are actually letting the picks within that fund be done by the fund manager.... which means from your perspective its still passive.
IMO, unless you are picking specific listed companies (Tesco, SIRIUS, etc) then any and all other funds are passive.

 

 

[Bullionaire]

4 hours ago, Pritchard said:

Notice i dont have any overlaps in fund area. i took time to chose the best performers / costs from each of my chosen sectors. This info above is now dated in terms of the figures, but its not yet due its yearly review.

As for the active/passive, i would personally argue those terms (in fact, i HATE those terms. should be banned from the industry). A Passive fund is by definition an Index fund (ie, track FTSE 100). But, if you are buying an 'Active' fund, such as any of the above, you are actually letting the picks within that fund be done by the fund manager.... which means from your perspective its still passive.
IMO, unless you are picking specific listed companies (Tesco, SIRIUS, etc) then any and all other funds are passive.

Thanks for your reply Pritchard. I will of course do my own research into anything before I put any of my (reasonably) hard earned into it.

At the minute, I have a fair bit of overlap with my funds. I should probably have a bit of a tidy up and try to diversify a bit more. I thought there was a section on the fidelity website where it told you what % you had in each geographical location/sector/size companies etc, but I can't find it now... My funds at the minute are:

 

AXA Framlington Global Technology Z Inc                      +12.46%

Baillie Gifford Developed Asia Pacific B Acc                   +8.34%

Baillie Gifford Greater China Fund B Inc                           -4.76%

HSBC American Index Fund Inc C                                      +13.26%

iShares Continental Euro Equity Index Class D Acc         +6.63%

iShares Japan Equity Index Fund Class D Acc                 +7.75%

iShares UK Equity Index Fund Class D Acc                        +6.52%

Legal & General International Index Trust (I) - Acc          +12.29%

Legal & General US Index Trust (I) - Inc                              +16.46%

Legg Mason IF Japan Equity Fund Class X Acc GBP      +1.65%

SCOTTISH MORTGAGE INV TRUST (SMT)                        +12.23%

TB Amati UK Smaller Companies Fund B Acc                  +9.84%

 

The point about the passive and active funds, the reason I'm differentiating is that you usually pay a fair bit more for the active funds, therefore I'm trying to stick to more tracker funds going forwards. If there's an active manager in charge of picking what companies are invested in in your fund, then younusually pay 0.1-1% (such as the 'Legg Mason IF Japan Equity Fund'). If there's just a computer algorithm picking, then  you usually pay around 0.05% (such as the 'HSBC American Index Fund'). I realise that I myself am passive for all of these funds in that I'm not picking out the stocks, but I still think it's important to make the distinction between the two.

[Pritchard]

:- )

i understand your passive / active. I was just ranting lol.

 

yes you can search geographical. In total about 60% of mine is US (very heavy!). But by picking different sectors it allows for some form of diversification.

 

the other thing to think about, if you bought (for example) 2 different AIM or small cap funds, many companies may overlap and be in both funds. For this reason you actually don’t diversify at all. I’ve seen plenty of people buy 2 competing funds, with clear overlapping firms in the top 10, makes no sense to me why you’d do this. (Ok there are some arguments. But more cons than pros I’d say)

[Mike]

I'm trying a bit of an experiment in my ISA at the moment.  Its based on some of Warren Buffet's strategy:

1 - Passive will should outperform active due to the high charges in active

2 - Buy sold shares, and buy and hold.  I read somewhere that an amateur could outperform active by buying shares themselves and not paying all the fund charges

So, I buy monthly, by putting a regular amount into my ISA each month and topping up with the remaining at times when markets dipped or good value shares take a hit. So, I invest monthly:

 - 20% L&G UK Index

 - 20% UBS S&P 500 index

 - 20% Baillie Gifford Global Discovery

 - 20% Scottish Mortgage Inv Trust

 - 20% into Cash to fund speculative share purchases from time to time along with top ups

My best picks of shares:

1 - Maraine Harvest (Norwegian sustainable fish producers) up 150 over c3.5 years, including divis

2 - Games Workshop (I think thats a Warren Buffet pick), up 40% in 1 year

3 - Apple (definitely Warren Buffet) up c25% in 1 year

I also own airline shares, Easy Jet (up 120% since I bought at Brexit), IAG (Up 20% in 2 years)

I've picked one absolute dog - Standard Life Aberdeen, I owned Standard Life Shares for years and did very well on them.  I bought some of the new merged company in my ISA a week or two before they announced the deal with Phoenix and I am down 18%!!!  Other shares on my watchlist, Sirius Minerals, Sophos group - Both good growth potential but currently very volatile

So far, my share portfolio is performing best, followed by my active picks, but still in profit are my passive funds

Past Performance is not a guide to the future, value of investments can go down as well as up, nothing in this post should be taken as investment advice!!!

[dicker]

Whilst everyone is an expert...

My punt is U.K. Smaller Companies or U.K. MidCap

I think U.K. equities are undervalued and we will get a Brexit deal

best

dicker

[vand]

On 05/11/2018 at 20:08, dicker said:

Whilst everyone is an expert...

My punt is U.K. Smaller Companies or U.K. MidCap

I think U.K. equities are undervalued and we will get a Brexit deal

best

dicker

 

I remember the FTSE100 and FTSE250 being almost at parity not all that many years ago.. midcaps have massively outperformed in the time since, but nothing outperforms forever, and I think they will have it much tougher going forward. 

I like some high dividend UK bluechips like AV, VOD, SSE, CNA that should provide solid income that you can reinvest with limited downside if global stocks get whacked over the next couple of years.

 

[vand]

As they say, past performance is no guarantee of future returns.. applied to the funds industry there is very conclusive evidence that the best performers over a 5 year period will almost certainly underperform in the following 5 years. There is always reversion to the mean in over 90% of cases.

[Bullionaire]

13 hours ago, vand said:

 

I remember the FTSE100 and FTSE250 being almost at parity not all that many years ago.. midcaps have massively outperformed in the time since, but nothing outperforms forever, and I think they will have it much tougher going forward. 

I like some high dividend UK bluechips like AV, VOD, SSE, CNA that should provide solid income that you can reinvest with limited downside if global stocks get whacked over the next couple of years.

 

Fidelity have just started letting you buy individual stocks, so I've been looking at a few - was looking at Vodafone a one of my maybes.

[vand]

18 minutes ago, Bullionaire said:

Fidelity have just started letting you buy individual stocks, so I've been looking at a few - was looking at Vodafone a one of my maybes.

Yah, I've just opened a S&S ISA with Fidelity  

Currently on my radar:

VOD, SSE, CNA, BT.A, LLOY, AV

Proven companies all trading at single-digit PEs paying good dividends that have been through previous market downturns. I haven't actually bought anything yet though... is there a transaction cost? Do you still pay the 0.5% stamp duty? 

Actually thinking about taking out a personal loan at rock bottom rates (2.8%!) to do some stuff with... including buying some shares. The money's too cheap not to.. Currently on 5% SVR on the last dregs of my mortgage, so I could chuck it at that too.  Plan is to max out the annual ISA limit for 10 years and reinvest all dividends to build a significant income producing portfolio. Current valuations say this is a better bet than trying to clamber onto the property bandwagon.

[Pritchard]

I have vodafone on my shortlist. but they are increasingly in debt, and they have borrowed money to pay their dividend for the last 5 years now if i recall. theyve just spent several 0's on 5G in Italy for rights too (which wont generate any income for a while).

the reason why i havent invested in them yet, is they are one of the UKs oldest perceptual dividend payers (increases every year)for about 25 years now. iif they cut the dividend (which as above, i think is coming up) the stock will crash.

or, if they manage to make profit, they will likely recover alot of their lost ground in stock value.

watching closely.

 

also to last poster - think hard before borrowing. even at low rates. especially as UK is now in a recession.

even if rates look good, there could be some pending rate changes.

 

[Fivepoundfred]

What are the general views on possible performance of existing S & S managed ISA's over the next 12 -24 months ? A close friend has had one going for about 8 years and seen fairly impressive growth over that period but is concerned because has a plan to retire at some point in the next couple of years and has asked me for my opinion on his best option, sadly my knowledge of managed ISA'S is fairly limited. Personally i have always purchased stocks and shares directly in specific companies

He has enquired with his provider who have confirmed there is no closure fee, i know some managed funds can screw you with closure or transfer fees.

I guess if he wants to keep his tax free benefits  his main "safe" option is to transfer to something like a two or three year cash ISA, transferring to another managed fund would probably incur start up fees which may not be viable for a short term investment.

Any views or thoughts appreciated.

 

[h103efa]

8 minutes ago, Fivepoundfred said:

What are the general views on possible performance of existing S & S managed ISA's over the next 12 -24 months ? A close friend has had one going for about 8 years and seen fairly impressive growth over that period but is concerned because has a plan to retire at some point in the next couple of years and has asked me for my opinion on his best option, sadly my knowledge of managed ISA'S is fairly limited. Personally i have always purchased stocks and shares directly in specific companies

He has enquired with his provider who have confirmed there is no closure fee, i know some managed funds can screw you with closure or transfer fees.

I guess if he wants to keep his tax fee benefits and a his main "safe" option is to transfer to something like a two or three year cash ISA, transferring to another managed fund would probably incur start up fees which may not be viable for a short term investment.

Any views or thoughts appreciated.

 

What I have done recently is moved a lot of my s&s isa into fixed interest funds. Really to protect the really good growth I've had these past 6 years or so. But this is because I see a downturn in the next year or so and also I intend to liquidate a good amount to pay for an extension on the house and I wanted to lock in that growth. This is my own personal scenario! 

[Bullionaire]

On 02/01/2019 at 11:01, vand said:

Proven companies all trading at single-digit PEs paying good dividends that have been through previous market downturns. I haven't actually bought anything yet though... is there a transaction cost? Do you still pay the 0.5% stamp duty? 

Yes, you pay £10 per transaction plus 0.5% stamp. 

I've put some money into Aviva and BT. Both at knockdown prices and both pay decent dividends.

[5huggy]

hey what do I know!

Divi payers!

SXX = my second run at them - bought at 4p and sold at 38p first time round!

BP Plc Ordinary US$0.25	520.8p	+2.38%
National Grid Ord 12, 204/473p	783.3p	+1.18%
Sirius Minerals plc Ordinary GBP 0.0025	21.4p	+1.81%
iShares plc FTSE UK Dividend Plus	752.8p	+1.72%
Aviva plc Ordinary 25p	379.6p	+3.24%

[Kritika]

Hi All

Just one question, if you were intending to take a punt on a SS ISA or even a single stock that is bound to take a hit in the coming weeks with a Brexit, what would you take a punt on.

Im looking to stick some spare funds into something after the inevitabe drop on the coming weeks, then leave it in there for the long term, so just wondered if any one had any favourites or If any of the ones listed on this post may be the way to go.

 

 

 

 

 

[shortstack68]

55 minutes ago, Kritika said:

Hi All

Just one question, if you were intending to take a punt on a SS ISA or even a single stock that is bound to take a hit in the coming weeks with a Brexit, what would you take a punt on.

Im looking to stick some spare funds into something after the inevitabe drop on the coming weeks, then leave it in there for the long term, so just wondered if any one had any favourites or If any of the ones listed on this post may be the way to go.

 

 

 

 

 

I'll be buying cheap sterling for visits to blighty. Did the same with Turkish Lira late last year

[Kritika]

Just finished my research and about to load up on the following when the Brexit Sh*&% hits the fan in the coming months.

LINDSELL TRAIN GLOBAL EQUITY CLASS D – INCOME - 1.04% pa

LEGAL & GENERAL US INDEX CLASS C - ACCUMULATION -  0.50% pa

BAILLIE GIFFORD GLOBAL DISCOVERY CLASS B – ACCUMULATION - 1.23% pa

SCOTTISH MORTGAGE INVESTMENT TRUST (SMT) ORDINARY SHARES - 1.44% pa

Average Cost – 1.05% PA

Here are few other contenders if any of the above prove not up to par, but the first two of them are a bit weighty on running costs and have some crossover especially in big name US Tech.

 STEWART INVESTORS ASIA PACIFIC LEADERS CLASS B – ACCUMULATION - 1.53% pa

POLAR CAPITAL GLOBAL TECHNOLOGY CLASS I - INCOME - 2.27% pa

VANGUARD LIFESTRATEGY 80% EQUITY ACCUMULATION - 0.77% pa.

 I’ve tried to avoid crossovers where I can, but it’s always good to get a second opinion on these things, so if anyone sees a glaring mistake please let me know.

[vand]

Those are some outrageous fees.

I've just listened to Tony Robbins' (audio) book "Unshakable", and he rather convincingly makes the case against expensive active funds and the fees they have.

As you probably know, most funds don't even beat the market over a 5 yr timeframe, so why pay a big fee for almost guaranteed underperformance?

The dual effect of poor performance and high fees compounded over 20-30 years will be staggering.

I think there is room in the strategy for at least some of that to go into a low cost market tracker fund... I've heard Vanguard funds are well regarded as some of the cheapest market trackers.

 

That said... I also have selected active funds for my pension, so I probably need to take my own advice.

 

 

 

 

 

[vand]

@Bullionaire - how are you getting your exposure to China? It's a market I feel is massively undervalued and would like to get some direct exposure myself.

 

edit:

ah, I see 
Baillie Gifford Greater China Fund B Inc                           -4.76%

[Bullionaire]

8 minutes ago, vand said:

@Bullionaire - how are you getting your exposure to China? It's a market I feel is massively undervalued and would like to get some direct exposure myself.

 

edit:

ah, I see 
Baillie Gifford Greater China Fund B Inc                           -4.76%

I was wondering about putting a bit more in it now that it's 'on sale'. Hopefully when trade deals etc stop bogging them down they can kick on again

[vand]

I think the markets could be pricing in an upcoming outright RECESSION in China, as difficult as that might be to imagine. Certainly, the numbers coming out show recent "softening". If you think about it, it's the perfect buying opportunity. All history has shown us that buying assets during a recession will get you bargain prices and super future return.. the problem is the fear and uncertainty about job losses mean people usually don't pull the trigger (this is the way it must be of course). But if you are buying A.N.Other's market during their recession you don't have the same degree of personal uncertainty.. 

Not saying UK has it all rosy or won't have its own problems, of course.

 

 

[MHoppy]

Sorry to hijack the thread

Couple of quick questions do you use IB to manage your SIPP portfolio ?

I'm just looking at transferring my SIPP away from my current provider and IFA to take control myself. I'm been on the IB website and phoned the list of approved SIPP Admins for quotes. 

Do you guys recommend a particular IB SIPP admin? and does it even matter which I go with? I'm thinking not a go with the cheapest. 

[vand]

@MHoppy

I don't have a SIPP, I have an ISA (and also a traditional workplace pension pot).. sorry, can't help. What's IB?

I haven't looked too much into SIPPs.. I assume the payments are taken out of your net pay, so how does the tax relief work? Does the SIPP provider automatically credit it?

[MHoppy]

Thanks, 

SIPP = self-invested personal pension 

My legacy pension fund portfolio, can be managed using and Interactive brokerage account (IB) via and pension admin. company (who appear just to be figure heads) 

The IB plarform is fully Comprehensive and I've a massive learning curve. 

I'm looking to manage my own legacy pension portfolio pre brexit, and trade etf's and any other opportunities post brexit. 

My current employers pension also as astronomical admin fees. (excluding the usually funds fees) and yes I believe they credit the tax relief, on my wage contributions.