Confident SIPP investors diversify portfolios

SIPP and SIPP drawdown investors added more diverse assets to their portfolios, including equity income and corporate bonds, in December according to Hargreaves Lansdown figures. The move suggested greater confidence among retirees after they concentrated on the US, tech trackers and AI in November. Hargreaves said SIPP investor confidence remained high, with a distinct bias towards risk assets with the top funds table being led by Jupiter India and Fidelity Global Technology. Emma Wall, head of investment analysis and research at Hargreaves Lansdown said: “Last month markets, and investor confidence across all sectors, rose. The previous month’s trades were crowded into just a few sectors – the US, tech trackers and AI proved popular with retirees. “But the improved interest rate outlook clearly made an impact on investor trading last month, as December's most-bought tables saw equity income and corporate bond funds make an appearance.” She said retirement savers have not turned off their love of tech – “far from it. Global tech funds, tech-biased global equity funds and even specialist artificial intelligence investments still feature in the top 10 for December.” Ms Wall said that was “hardly surprising when you consider the Magnificent 7 stocks – Apple, Alphabet, Microsoft, Amazon, Meta, Tesla and Nvidia – returned 111% on average in 2023, compared to 24% for the S&P 500 as a whole, and just 2.4% for the FTSE 100.” Top Funds bought in SIPPs, December 2023 (net buys) Jupiter India Fidelity Global Technology Baillie Gifford American Sanlam Global Artificial Intelligence Rathbone Global Technologies Artemis Corporate Bond Fidelity Global Dividend Artemis Income Man GLG Sterling Corporate Bond Legal & General Cash Top Funds bought in SIPP drawdown, December 2023 (net buys) JPM US Select Jupiter India Artemis Corporate Bond Royal London Sterling Extra Yield Bond Royal London Corporate Bond Trust Man GLG Income Fidelity Global Dividend Baillie Gifford American Sanlam Global Artificial Intelligence Fidelity Global Technology Source: Hargreaves Lansdown

Confident SIPP investors diversify portfolios

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