Case Study | Portfolio Review

OCTOBER 2021

In this case study, our Head of Research James Calder looks at helping a client meet their objectives for both his own ISA and his daughter’s SIPP. Extracts from this case study were first published in the Telegraph on 7th October 2021.

Background

Mr X wants his ISA and his daughter’s junior SIPP reviewed. He is aged 47 and does not need to touch his ISA for a decade. He is currently adding £240 a month into the SIPP for his daughter, who is age 12.

He wants to make changes now and then leave the portfolios alone. He does not have much investment experience and has built the portfolios himself, so wants some expert guidance at this stage.

He has no particular attachment to investment themes and simply wants to maximise his investment returns over the given periods. In the SIPP, he sold Scottish Mortgage at the start of the year as he was worried about the Tesla position, but he has not reinvested the cash. Yet.

He has come prepared with three questions:

1) What should be buy and sell in each portfolio?

2) What are the key differences for investing over a 10-year horizon and a 40-year horizon, and how can he apply these?

3) Should he mix active and passive, or go for just one approach?