Disinvestment strategy

[DAF]

I have an inherited portfolio of shares and bonds (approx $600k) that I want to sell down to use for other purposes.

I'm looking for some professional advice on a liquidation strategy - anyone have any recommendations for a good broker/adviser?

Many thanks for your help.

[percy]

I have an inherited portfolio of shares and bonds (approx $600k) that I want to sell down to use for other purposes.

I'm looking for some professional advice on a liquidation strategy - anyone have any recommendations for a good broker/adviser?

Many thanks for your help.

Where are you based.?

[DAF]

Where are you based.?

Wellington

[Joshuatree]

Simplest effective least risky way could be to sell a chosen number (eg 3000) every 3 days, week or fortnight or month etc so you average out, not selling at a top or a bottom taking into account pay dates for divs which may vary the quantity to sell ie cum or ex div depending on your situ..

[peat]

if you don't want equity risk/reward you should sell out at least half pretty quickly I reckon. and then phase selling the second half out more slowly.
If you did it too slowly - say you were selling 5% per month over 20 months you'd be pretty gutted if there a big fall during the next six months. And given the last quarter of 2018 that is now very much an increased possibility.
Also going for broad stroke action such as selling half, you dont need to pay a broker for their input , you can do it online for low fees. I personally dont think full liquidation requires an overly complex strategy. obviously dont sell them all on one day and dont move the price around if a holding is quite large wrt daily volume. Try to sell into rising markets (eg now cf October-Dec) with limit prices on every sell order.

[DAF]

Simplest effective least risky way could be to sell a chosen number (eg 3000) every 3 days, week or fortnight or month etc so you average out, not selling at a top or a bottom taking into account pay dates for divs which may vary the quantity to sell ie cum or ex div depending on your situ..

Thanks, Joshuatree - presume what you're suggesting is for each and every holding?

if you don't want equity risk/reward you should sell out at least half pretty quickly I reckon. and then phase selling the second half out more slowly.
If you did it too slowly - say you were selling 5% per month over 20 months you'd be pretty gutted if there a big fall during the next six months. And given the last quarter of 2018 that is now very much an increased possibility.
Also going for broad stroke action such as selling half, you dont need to pay a broker for their input , you can do it online for low fees. I personally dont think full liquidation requires an overly complex strategy. obviously dont sell them all on one day and dont move the price around if a holding is quite large wrt daily volume. Try to sell into rising markets (eg now cf October-Dec) with limit prices on every sell order.

Thanks, Peat. Am I right in thinking you're suggesting something similar to Joshuatree, just with a big sell off immediately?
Interesting you're both suggesting across the board selling rather than picking holding by holding...good food for thought.

[Baa_Baa]

If we can assume you know nothing about what you've inherited or how to manage it, get a broker like Craigs to liquidate your equities and bonds at the best price possible as quickly as possible. Do it and move on with your life.

[DAF]

If we can assume you know nothing about what you've inherited or how to manage it, get a broker like Craigs to liquidate your equities and bonds at the best price possible as quickly as possible. Do it and move on with your life.

Wouldn't say I know nothing, but certainly not feeling confident enough to stock pick or get timing right. What value-add should I expect to get from Craigs?

[stoploss]

Wouldn't say I know nothing, but certainly not feeling confident enough to stock pick or get timing right. What value-add should I expect to get from Craigs?

Are the shares in your name so you can execute the trades ? If they are in an estate name & probate is through from experience might be easier to get a broker to load up the portfolio . Then you decide with them when and what to execute.
I could put you in contact with a broker that would likely do this at a discount as they would be one off trades .
PM me if you want me to make that introduction .
Cheers S/L

[777]

To keep brokerage to a minimum you should use the online providers Direct Brokerage or ASB Securities and make sure the minimum sale is $15,000. That is with DB but may be slightly different with ASB with a different brokerage minimum. I have not used a full fee broker for 20 plus years so do not know what their rates are now but every 1% extra you pay is $6000 less in your hand.