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  • FIRST POST
    • Starbrite
    • By Starbrite 5th Jul 17, 12:21 PM
    • 616Posts
    • 1,335Thanks
    Starbrite
    Scottish Widow fund closing...
    • #1
    • 5th Jul 17, 12:21 PM
    Scottish Widow fund closing... 5th Jul 17 at 12:21 PM
    Today my Scottish Widow pension, informed me a fund is closing and said will move over funds to another fund automatically unless otherwise advised

    I of course want the best for my money so after a 'quick' phone call, the man informed me I could choose a fund if I feel the replacement is not good enough... he ran through how to find the funds and where the information sheet of fund performance is...

    Now after a quick look and an omg, why did I not learn this stuff at school, probably did but was busy staring out the window, I've freaked out...

    I'm wondering if anyone can suggest a good fund, or even explain what I need to look for in complete idiot terms

    I currently have the SW Schroder European Alpha Plus fund which is closing and money will be put into the Scottish Widows European fund.

    A total of £1,185.05 is in the fund - NOT my total pension pot
    Saving 2,000 in 2013!
Page 1
    • Zola.
    • By Zola. 5th Jul 17, 2:35 PM
    • 985 Posts
    • 350 Thanks
    Zola.
    • #2
    • 5th Jul 17, 2:35 PM
    • #2
    • 5th Jul 17, 2:35 PM
    I am in Pens Portfolio 2 with SW, balanced. Its doing good.
    • Bravepants
    • By Bravepants 5th Jul 17, 5:51 PM
    • 215 Posts
    • 235 Thanks
    Bravepants
    • #3
    • 5th Jul 17, 5:51 PM
    • #3
    • 5th Jul 17, 5:51 PM
    I'm in Pens Portfolio 3 for my AVCs, index trackers and it's cheap.
    • bigadaj
    • By bigadaj 6th Jul 17, 11:00 PM
    • 9,357 Posts
    • 5,981 Thanks
    bigadaj
    • #4
    • 6th Jul 17, 11:00 PM
    • #4
    • 6th Jul 17, 11:00 PM
    Have a read through monevator and that should give you a good grounding.

    This isn't have been taught at school, though the basic maths and some other elements would help, it's not too difficult though and a few weeks of reading should give you the basics.
  • jamesd
    • #5
    • 7th Jul 17, 3:20 AM
    • #5
    • 7th Jul 17, 3:20 AM
    Europe seems like a pretty good place for equity investing at the moment so you might try looking at their range of European funds and picking whichever one seems best.
    • AnotherJoe
    • By AnotherJoe 7th Jul 17, 9:23 AM
    • 6,876 Posts
    • 7,315 Thanks
    AnotherJoe
    • #6
    • 7th Jul 17, 9:23 AM
    • #6
    • 7th Jul 17, 9:23 AM
    Today my Scottish Widow pension, informed me a fund is closing and said will move over funds to another fund automatically unless otherwise advised

    I of course want the best for my money so after a 'quick' phone call, the man informed me I could choose a fund if I feel the replacement is not good enough... he ran through how to find the funds and where the information sheet of fund performance is...

    Now after a quick look and an omg, why did I not learn this stuff at school, probably did but was busy staring out the window, I've freaked out...

    I'm wondering if anyone can suggest a good fund, or even explain what I need to look for in complete idiot terms

    I currently have the SW Schroder European Alpha Plus fund which is closing and money will be put into the Scottish Widows European fund.

    A total of £1,185.05 is in the fund - NOT my total pension pot
    Originally posted by Starbrite
    For such a small amount (no disrespect meant) I would pick the riskiest fund i can find, the upside is much more than the downside. Say it halves, you've lost £500, doubles, gained £1,000.

    So that would not be a tracker but a managed fund, and not Europe. Perhaps China. Or a healthcare fund. Something that will make a difference if it grows. Worrying about a few% on £1k is neither here nor there.
    • Malthusian
    • By Malthusian 7th Jul 17, 9:58 AM
    • 2,401 Posts
    • 3,329 Thanks
    Malthusian
    • #7
    • 7th Jul 17, 9:58 AM
    • #7
    • 7th Jul 17, 9:58 AM
    So that would not be a tracker but a managed fund, and not Europe. Perhaps China. Or a healthcare fund. Something that will make a difference if it grows. Worrying about a few% on £1k is neither here nor there.
    Originally posted by AnotherJoe
    You're taking a lot of risk for which you get no expected reward. Healthcare did really well for me over the last few years but any single sector could go out of favour in the next decade or experience losses due to technological disruption. When you invest in a "healthcare" fund you're not really investing in healthcare but the giant companies in the healthcare sector that everybody already knows about. What happens to their value if new drug pipelines run dry, or governments start clamping down on inflated prices and insist on buying generics, or someone (outside the Big Pharma companies that you own) invents a magic soma pill that cures depression with no side effects?

    No-one really has any idea what Chinese shares are worth due to Communist corruption; an accounting scandal and values could easily collapse. And neither of these sectors are obscure fledgling sectors that nobody knows about, like social media in the early 2000s, so you aren't compensated by upside.

    Emerging markets smaller companies is about as high risk as I would be willing to go, even with money that I can "afford to lose", knowing that there should be at least some diversification and it is unlikely that nearly every company in the fund is going to be crap (fun fact: whether they can afford it or not, nobody wants to lose money). Obviously that isn't going to be available via the OP's pension.

    OP - if you don't know how to pick funds then you could just put it in the SSgA European Equity Index. It tracks the stockmarket so you can relax in the knowledge that you won't lose out due to poor management decisions. (You probably won't, however, get an advantage in lower costs, as it sounds like you have an old-style pension with a flat charge.)
    • SallyG
    • By SallyG 7th Jul 17, 10:55 AM
    • 828 Posts
    • 189 Thanks
    SallyG
    • #8
    • 7th Jul 17, 10:55 AM
    • #8
    • 7th Jul 17, 10:55 AM
    What we need is the person who programs the AI advice giving, fund picking robot to reveal their "algorithms" for the public good so we can all do it - how to pick an investment in 20 simple moves.
    If investment advice is susceptible to systems analysis maybe we could all just follow the flow chart and find our perfect fund?
    What would the inputs be?
    • Malthusian
    • By Malthusian 7th Jul 17, 12:11 PM
    • 2,401 Posts
    • 3,329 Thanks
    Malthusian
    • #9
    • 7th Jul 17, 12:11 PM
    • #9
    • 7th Jul 17, 12:11 PM
    What we need is the person who programs the AI advice giving, fund picking robot to reveal their "algorithms" for the public good so we can all do it - how to pick an investment in 20 simple moves.
    Originally posted by SallyG
    The algorithm is extremely simple and already well known. For the inputs you start with a questionnaire like those you find in teen magazines which determine whether you have a crush or not, only instead of the questions being "Do you find ways to arrange chance encounters with him (constantly = 20 points, sometimes = 10 points, never = 0 points)", they are along the lines of "To make money you need to take risks" (agree = 20 points, don't know = 10 points, disagree = 0 points). Then when you add up your points at the end, instead of "200+ = superhot crush, 150-200 = mild crush" you get "200+ = high risk, 150-200 = high medium risk" etc.

    Then the algorithm is basically IF %risk_rating > 200 THEN fund_selection = Roboflogger Multimanager Adventurous; ELSEIF %risk_rating > 100 THEN fund_selection = Roboflogger Multimanager Balanced; ELSEIF %risk_rating > 50 THEN fund_selection = Roboflogger Multimanager Cautious; ELSEIF PRINT "You should stick with cash, goodbye."

    Far fewer than 20 moves. No-one is getting advice in this process, by the way.
    • AnotherJoe
    • By AnotherJoe 7th Jul 17, 1:29 PM
    • 6,876 Posts
    • 7,315 Thanks
    AnotherJoe
    - if you don't know how to pick funds then you could just put it in the SSgA European Equity Index. It tracks the stockmarket so you can relax in the knowledge that you won't lose out due to poor management decisions. (You probably won't, however, get an advantage in lower costs, as it sounds like you have an old-style pension with a flat charge.)
    Originally posted by Malthusian
    Yes but that's all very worthy but dull and isn't going to make any appreciable difference to the OP. He's not afeguarding a million or a hundred k but one k. Better IMO to take a bigger chance and if it comes off all good, if it doesn't they've lost a few hundred quid, so what.
    • Thrugelmir
    • By Thrugelmir 7th Jul 17, 10:02 PM
    • 54,334 Posts
    • 47,150 Thanks
    Thrugelmir
    Yes but that's all very worthy but dull and isn't going to make any appreciable difference to the OP. He's not afeguarding a million or a hundred k but one k. Better IMO to take a bigger chance and if it comes off all good, if it doesn't they've lost a few hundred quid, so what.
    Originally posted by AnotherJoe
    First rule of investing is don't lose capital.

    Simple as that.

    Fable of the Hare and the Tortoise. Who won the race?
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • michaels
    • By michaels 7th Jul 17, 10:46 PM
    • 19,007 Posts
    • 87,252 Thanks
    michaels
    As it is not the main provision perhaps it should go in something uncorrelated with or even inversely correlated with their main funds - perhaps a short fund?
    Cool heads and compromise
    • Bazofts Revenge
    • By Bazofts Revenge 7th Jul 17, 11:01 PM
    • 275 Posts
    • 138 Thanks
    Bazofts Revenge
    OP How many other funds in the pension? Equally distributed or different amounts in each? Do you have other investments? If this is all you have then best play safe. How long to go until retirement?

    Don't we all wish we had been taught this at school. Closest we came was working out the total to be paid on a Mortgage in one lesson on compounding interest. Wish we had done more.
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