In another thread I discussed the pros and cons of whether to move to DIY investing with an equity portfolio I inherited. I have now taken the decision to do just that, and am planning on documenting my ongoing amateur investment experience and thinking here.
My main reason for doing this is to keep myself honest - i.e hopefully if I am posting what I am thinking it will focus the mind, not to panic madly if there is a market correction, not to get too cocky if the bull keeps going, not to suddenly put it all on a penny share I heard about down the pub etc etc. I hope it will also provoke discussion along the way.
The final decision on leaving the investment manager was actually nothing to do with fees. It was level of service eg dividends not showing up, an error in calculating book cost across portfolio, calls not returned. I suddenly realised that if I got the same level of dissatisfaction from a post office savings account I'd shut it, so made no sense to carry on with investment manager.
To start, position as is today, background, objectives, etc etc.
Me - early 40s, cohabiting, 2 young children, low rate tax payer.
Homeowner - property comfortably worth €900k, no mortgage.
Debt free.
No pension.
All other things being equal, I plan to sell the house in 3 years time and buy a cheaper house putting approx 300k into investment portfolio.
Overall strategy is to build a portfolio to provide income in retirement - approx twenty years time. I do not anticipate needing the capital in that time, but I may take some of the income in the meantime.
Portfolio low 6 figures.
Portfolio is currently almost entirely in £GBP with a UK Investment management company. I intend to keep it in £GBP and move it to Hargreaves Lansdown, online stockbroker with relatively low fees.
I realise there are questions over the future of £GBP but reasoning behind sticking with it is largely that with the property I am already heavily exposed to € and I don't think that is without problems either.
There will be a few big decisions to make when the property is sold and I will take another look at currency at that stage.
Portfolio is currently approx 50% bonds and approx 50% equities/investment trust holdings. These holdings are:
ROYAL DUTCH SHELL PLC EUR0.07 B Shares (UK Listed)
RIO TINTO PLC 10p Ordinary Shares
ROLLS ROYCE HOLDINGS PLC 20p Ordinary Shares
INTERTEK GROUP PLC 1p Ordinary Shares
UNILEVER PLC 3 1/9p Ordinary Shares
BRITISH AMERICAN TOBACCO PLC 25p Ordinary Shares
GLAXOSMITHKLINE PLC 25p Ordinary Shares
PEARSON PLC 25p Ordinary Shares
VODAFONE GROUP PLC USD0.2095238 Ordinary Shares
SEVERN TRENT PLC 97.89p Ordinary Shares
LEGAL & GENERAL GROUP PLC 2 1/2p Ordinary Shares
PRUDENTIAL PLC 5p Ordinary Shares
LONDONMETRIC PROPERTY PLC 10p Ordinary Shares
SAGE GROUP PLC 1.051948p Ordinary Shares
STANDARD LIFE INVESTMENTS UK Equity Inc Uncon Instl Inc
NORTH AMERICAN INCOME TRUST 25p Ordinary Shares
NESTLE SA CHF1 Shares (Regd)
ABERDEEN UNIT TRUST MGRS World Equity Income I Inc
ARTEMIS FUND MGRS Global Income Units Instl Inc
LAZARD FUND MGRS (IRE) Gbl Listed Infrastructure Eqty
RIT CAPITAL PARTNERS PLC £1 Ordinary Shares
T BAILEY FUND MGRS Aptus Global Financials A Inc
PERSONAL ASSETS TRUST PLC £12.50 Ordinary Shares
SANDITON INVESTMENT TRUST PLC Ordinary Shares
That's it for now. Next post I'll go into a bit of detail about what I plan to change with the existing portfolio.
My main reason for doing this is to keep myself honest - i.e hopefully if I am posting what I am thinking it will focus the mind, not to panic madly if there is a market correction, not to get too cocky if the bull keeps going, not to suddenly put it all on a penny share I heard about down the pub etc etc. I hope it will also provoke discussion along the way.
The final decision on leaving the investment manager was actually nothing to do with fees. It was level of service eg dividends not showing up, an error in calculating book cost across portfolio, calls not returned. I suddenly realised that if I got the same level of dissatisfaction from a post office savings account I'd shut it, so made no sense to carry on with investment manager.
To start, position as is today, background, objectives, etc etc.
Me - early 40s, cohabiting, 2 young children, low rate tax payer.
Homeowner - property comfortably worth €900k, no mortgage.
Debt free.
No pension.
All other things being equal, I plan to sell the house in 3 years time and buy a cheaper house putting approx 300k into investment portfolio.
Overall strategy is to build a portfolio to provide income in retirement - approx twenty years time. I do not anticipate needing the capital in that time, but I may take some of the income in the meantime.
Portfolio low 6 figures.
Portfolio is currently almost entirely in £GBP with a UK Investment management company. I intend to keep it in £GBP and move it to Hargreaves Lansdown, online stockbroker with relatively low fees.
I realise there are questions over the future of £GBP but reasoning behind sticking with it is largely that with the property I am already heavily exposed to € and I don't think that is without problems either.
There will be a few big decisions to make when the property is sold and I will take another look at currency at that stage.
Portfolio is currently approx 50% bonds and approx 50% equities/investment trust holdings. These holdings are:
ROYAL DUTCH SHELL PLC EUR0.07 B Shares (UK Listed)
RIO TINTO PLC 10p Ordinary Shares
ROLLS ROYCE HOLDINGS PLC 20p Ordinary Shares
INTERTEK GROUP PLC 1p Ordinary Shares
UNILEVER PLC 3 1/9p Ordinary Shares
BRITISH AMERICAN TOBACCO PLC 25p Ordinary Shares
GLAXOSMITHKLINE PLC 25p Ordinary Shares
PEARSON PLC 25p Ordinary Shares
VODAFONE GROUP PLC USD0.2095238 Ordinary Shares
SEVERN TRENT PLC 97.89p Ordinary Shares
LEGAL & GENERAL GROUP PLC 2 1/2p Ordinary Shares
PRUDENTIAL PLC 5p Ordinary Shares
LONDONMETRIC PROPERTY PLC 10p Ordinary Shares
SAGE GROUP PLC 1.051948p Ordinary Shares
STANDARD LIFE INVESTMENTS UK Equity Inc Uncon Instl Inc
NORTH AMERICAN INCOME TRUST 25p Ordinary Shares
NESTLE SA CHF1 Shares (Regd)
ABERDEEN UNIT TRUST MGRS World Equity Income I Inc
ARTEMIS FUND MGRS Global Income Units Instl Inc
LAZARD FUND MGRS (IRE) Gbl Listed Infrastructure Eqty
RIT CAPITAL PARTNERS PLC £1 Ordinary Shares
T BAILEY FUND MGRS Aptus Global Financials A Inc
PERSONAL ASSETS TRUST PLC £12.50 Ordinary Shares
SANDITON INVESTMENT TRUST PLC Ordinary Shares
That's it for now. Next post I'll go into a bit of detail about what I plan to change with the existing portfolio.