Changes to my pension funds??

liverpoolcarl

Hi All,


I have had my first yearly pension review. I am 28 paying £250 per month into the below funds. Fund value is £12,500 approx and overall I am around £3500.00 down. I have chosen my risk are as market risk and I am comfortable with the loss as it stands.


Existing Fund Split
Index Linked 10.0
Cash 10.0
SE UBS Gbl Emg Mkts 10.0
80/20 Def Man Coll 10.0
Select Reserve 10.0
SE Fidelity European 10.0
SE INVESCO Perp Inc 20.0
SE First St Asia PL 10.0
SE JPM Natural Res 10.0
Total 100.0

I have been advised to leaving my existing investments as they are and put any new cash into the external funds, bottom four in the list. I do have the % at home if needed, from memory SE INVESCO Perp Inc and SE JPM Natural Res got a higher %.

The reason behind this as explained was my age and to maximise the amount of shares I hold when investments go back up.

Does this sound ok before I go ahead?

Twickenham_Green_FA

Hi Carl,

That's not a bad spread, invesco perp are rated very highly and it's good to see some emerging market funds there. Don't really understand why you have cash, you've probably got 35-40 years before you retire, so I would questions why 10% in cash, get in the market.

hostman

Brendan_Bensley_IFA wrote: »

Hi Carl,

That's not a bad spread, invesco perp are rated very highly and it's good to see some emerging market funds there. Don't really understand why you have cash, you've probably got 35-40 years before you retire, so I would questions why 10% in cash, get in the market.

General advice is what age you are, that % should be in cash.

I have quite a wide spread for my pension, risk spread with funds investing in UK, Europe, America and Far East. But its always good to have some in cash.

liverpoolcarl

Any more views please??

DiggerUK

Liverpoolcarl,
I'm looking at the same figures as you. After all they are yours.

After losing 3,500 in under 5 1/2 years I can only ask you to take a step back and take that figure in.

Then I suggest you DYOR and look at the grim figures for future economic growth and unemployment.

Does it look like a good investment?
Do you know anything about those 10% "Fund Splits" and what they are?

I think it is clear to you, what my opinion on equity based investments in pensions are.
Hell fire, you don't even know what annuity rates will be in 30+ years time.

Don't be under the impression that IFA's are trained to give in depth market analysis or capable of doing so.
They aren't trained to do this. That's your job.

DYODD and good luck.

jamesd

Seems like a lot of cash for your age, though it made sense for the last year, so it worked out OK. Where are the US and Japan holdings, two of the major markets in the world?

jamesd

DiggerUK, market risk, assuming it means the UK market, means being willing to accept a downward variation of 40% or more in a bad year.

a7man

hostman wrote: »

General advice is what age you are, that % should be in cash.

I have quite a wide spread for my pension, risk spread with funds investing in UK, Europe, America and Far East. But its always good to have some in cash.

Remember that a lot of funds have small percentages in cash which will generally be sufficient to cover the cash element for someone who is an average risk level at your age. I would transfer the cash fund into a balanced fund eg. Newton Balanced Managed.

liverpoolcarl

I am leaving exisitng money already invested in existing funds:

Index Linked
Cash
SE UBS Gbl Emg Mkts
80/20 Def Man Coll
Select Reserve
SE Fidelity European
SE INVESCO Perp Inc
SE First St Asia PL
SE JPM Natural Res

New money from this point forward will go into:

SE Fidelity European
SE INVESCO Perp Inc
SE First St Asia PL
SE JPM Natural Res

So I am out of cash and in the market.. I documents is at home but Invesco Perp and JPM Natural Res got more of a %.