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Fine tuning my Isa to supplement pension income

Our reader is approaching retirement and wants to know how to reduce his funds and add increased diversification to his individual savings account portfolio

Jake is 59 and aims to retire at 60. He describes himself as an "adventurous investor" and over 20 years has built up an individual savings account (Isa) portfolio worth £236,000. He aims to use the income from this portfolio to supplement his secure pension. So he is seeking yield from the portfolio, plus some growth to keep pace with inflation.

"My holdings are too numerous and not diversified enough," he says. "I want to reduce the number of funds held and the management charges.

"I also aim to diversify the portfolio by adding a commercial property trust and other trusts, hopefully bought at a discount to their underlying net asset values. I do not see value in bonds or in adding gilts."

Jake's watchlist includes: TR Property Investment Trust (TRY), City of London Investment Trust (CTY), Scottish Mortgage Investment Trust (SMT), Edinburgh Investment Trust (EDIN), Finsbury Growth & Income (FGT), Troy Income & Growth Trust (TIGT) and Merchants Trust (MRCH).

He is also looking for a long-term European (ex-UK) trust, possibly European Assets Trust (EAT) or Fidelity European Values (FEV) and an Asian focused trust, possibly Aberdeen New Dawn (ABD)

Reader Portfolio
Jake 59
Description

Individual savings account

Objectives

Income & growth

JAKE'S PORTFOLIO

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