Investment ideas for your SIPP
SIPP investment ideas from Mark Dampier
The great advantage a SIPP holds over other pensions is that it lets you invest pretty much where you like. We have highlighted two sets of funds for SIPP investors, one for people who have 11 or more years until retirement, and the other for those with about 10 years. You can use them as they are, or use them as a core and add whatever appeals depending on your circumstances and attitude.
Mark Dampier, Head of Investment Research
10 years from retirement
If you are 10 years away from retirement it may be time to consider taking a little risk off the table. In many cases it will make sense to gradually shift your portfolio towards fixed interest and cash as you get nearer to retirement, although this decision will depend on your individual circumstances. If you are considering income drawdown that will change your timescales. Ten years is a long time in investment, though, so there is still plenty of potential gain to be had in the equity markets. The four funds I have chosen are run by top class managers with a long term track record. They have a high level of stock market exposure but are managed with different investment styles that should temper the volatility.
| Fund Suggestions | ||||
|---|---|---|---|---|
| M&G Global Leaders | Neptune Balanced | PSigma Income | Cazenove UK Absolute Target | |
| Details » | Details » | Details » | Details » | |
| Initial charge | 0.00% | 5.00% | 5.25% | 5.00% |
| Initial saving | 0.00% | 5.00% | 4.75% | 5.00% |
| Annual charge | 1.50% | 1.60% | 1.50% | 1.25% |
| Total expense ratio | 1.68% | 1.53% | 1.68% | 2.20% |
11 years or more until retirement
These growth funds should appeal to a wide range of SIPP clients. They are five flagship funds from five leading investment companies. At a stroke, they give a pension diversification in terms of investment company, style and management. Although not personal advice, these funds should appeal to both novice and experienced investors alike. I have chosen each fund not in pure isolation, but with a mind on how each one will dovetail with the others. Each fund aims to make you money, but with different thought processes. This avoids you placing all your pension in one fund. While we hope all will fire on four cylinders all the time, should one or two find the going somewhat harder for a while, we hope that the others should take up the running.
| Fund Suggestions | |||||
|---|---|---|---|---|---|
| Aberdeen Emerging Markets | Artemis Strategic Assets | Insynergy Odey | M&G Global Basics | Neptune Global Equity | |
| Details » | Details » | Details » | Details » | Details » | |
| Initial charge | 4.25% | 5.25% | 5.00% | 0.00% | 5.00% |
| Initial saving | 4.25% | 5.25% | 4.75% | 0.00% | 5.00% |
| Annual charge | 1.75% | 1.50% | 1.90% | 1.50% | 1.60% |
| Total expense ratio | 1.90% | 1.70% | 2.08% | 1.65% | 1.70% |
Important note: Please remember that all investments can fall in value as well as rise and therefore you should hold them for the long term. If you have any doubts as to the suitability of an investment please ask us for personal advice.
A low cost investment idea
If you are looking for a low cost managed fund to get you started we have negotiated a special deal with Schroders on their Schroder Managed Balanced Fund.
Mark Dampier's Wealth 150 - our favourite funds in each sector
If you'd like information on other funds for your SIPP our Wealth 150 list is a good place to start. As the name suggests it's 150 of our most favoured funds in each sector that are regularly monitored and updated by our investment team.
How to apply
Applying for a Vantage SIPP should take you no more than 10 minutes.
Latest investment ideas
HL MM Income & Growth
The equity income sector is home to some of the finest fund managers in the UK. This fund aims to identify them, investing in a selection of what we believe are the best equity income funds available. It fuses different, yet complementary fund management styles and is constantly monitored by a dedicated team.
SLI UK Smaller Companies
Some smaller companies are world-leaders, generating earnings globally in all market conditions. But with such a vast array to choose from you need to invest with a manager who has demonstrated the ability to achieve superior returns.
First State Greater China Growth
This fund invests in China and the related markets of Hong Kong and Taiwan. The manager, Martin Lau, tends to focus on large, well established companies, with an appreciation of the risks as well as the opportunities in China.
Old Mutual Corporate Bond
This fund aims to deliver a good level of income combined with some capital growth from a portfolio of corporate bonds. A minimum of 80% of the portfolio is invested in investment grade bonds. The rest of the fund is invested in a selection of other bonds, including some higher risk high yield bonds, to enhance the overall level of income.
Elite Bloxham Global Equity Income
Equity income investors who are looking to diversify beyond the UK might want to consider this global fund. Pramit Ghose, the manager, focuses on large companies with resilient earnings, as these companies often prosper in times of volatility. He seeks opportunities in all regions, from developed Western markets to higher risk emerging markets, leaving no stone unturned.
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