Switching pension plan, are these funds OK? Trying to get a decent+balanced portfolio

mr_fishbulb

Hi all, I asked this question on the the pensions board yesterday, but think it might be more appropriate here. If anyone can tell me if I am being an idiot here, please do.

I currently have a Standard Life Group Stakeholder pension through my work. I contribute 5% and my work contributes 10%. I also make salary sacrifices of 20% of any annual bonus into the pension. I am 29 years old and have been contributing for 2 years.

I have the option to switch to a Standard Life Group Flexible Retirement Plan which I am considering as the Stakeholder does not offer much in the way of fund choices.

This is how I plan to split my contributions into the plan:

Standard Life Invesco Perpetual High Income - 16%
Standard Life M&G Global Basics - 15%
Standard Life M&G Corporate Bond- 11%
Standard Life Old Mutual UK Select Mid Cap - 11%
Standard Life Threadneedle American Select - 11%
Standard Life CF Macquarie Global Infrastructure - 10%
Standard Life Fidelity South East Asia - 10%
Standard Life Schroder Global Emerging Markets - 8%
Standard Life Ignis UK Property - 5%
Standard Life Schroder Tokyo - 3%

This is how morning star x-ray breaks it down (I know the figures can be a little old):

Asset Allocation

Stock 80.59%
Bond 10.51%
Property 5%
Cash 2.9%
Other 0.99%

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Sectors

Information (13.75% total)
Software 2.03%
Hardware 4.09%
Media 1.8%
Telecommunications 5.83%

Service (35.18% total)
Healthcare 6.11%
Consumer Services 7.98%
Business Services 8.72%
Financial Services 12.36%

Manufacturing (51.07% total)
Consumer Goods 12.09%
Industrial Materials 17.85%
Energy 11.85%
Utilities 9.28%

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Regions

Greater Europe (43.88% total)
United Kingdom 32.7%
Western Europe - Euro 8.57%
Western Europe - Non Euro 0.21%
Emerging Europe 1.08%
Middle East / Africa 1.32%

Americas (27.69% total)
United States 22.92%
Canada 1.07%
Central & Latin America 3.71%

Greater Asia (28.43% total)
Japan 4.44%
Australasia 5.48%
Emerging 4 Tigers 12.03%
Emerging Asia - Ex 4 Tigers 6.48%

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Stock Style

Large Value 21%
Large Blend 16.27%
Large Growth 20.88%
Mid-Cap Value 13.15%
Mid-Cap Blend 11.22%
Mid-Cap Growth 9.52%
Small Value 2.97%
Small Blend 2.34%
Small Growth 2.64%

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I would welcome any comments on this. Am I heading along the right lines, or barking up the wrong tree? I'm hoping all my research hasn't been a waste of time

Many thanks

mr_fishbulb

No one got any views? I'm not sure who else to ask.

ozzage

I'm no expert and I don't know all of the funds you've listed in detail, but it looks pretty well thought out to me. I particularly like that you've deliberately tried to get away from only focusing on large caps. Clearly it's not the most cautious mix but you're 29 so that seems reasonable.

I'm sure others will have more informed commentary but I think it looks good.

mr_fishbulb

Thanks ozzage. Like you say, I've gone for some mid size companies particularly in areas I see as growth in the long term (infrastructure, energy, materials, etc).

sabretoothtigger

Looks good to me.

Standard Life Invesco Perpetual High Income - 16%
Standard Life M&G Global Basics - 15%
Standard Life M&G Corporate Bond- 11%
Standard Life Old Mutual UK Select Mid Cap - 11%
Standard Life Threadneedle American Select - 11%
Standard Life CF Macquarie Global Infrastructure - 10%
Standard Life Fidelity South East Asia - 10%
Standard Life Schroder Global Emerging Markets - 8%

I like your choice but you dont need two globals and america. I would avoid america specifically this year
Maybe thats a good american fund especially but I'd put it off for another time

Property is a long term play but your 29 so thats fine if you dont pull it too soon
Tokoyo I would just add it on the emerging instead but you might be right, I just dont like them like america

higher risk (predicted) wouldnt make sense close to retirement so you've done it right imo

Americas (27.69% total)
United States 22.92%
Canada 1.07%
Central & Latin America 3.71%

Too much in usa and not enough in canada and down south

Canada’s total government debt burden is the lowest in the G8

Canada is one of the few developed nations that are net exporters of energy.[7]

Canada is one of the world's most important suppliers of agricultural products

mr_fishbulb

Many thanks for all your comments sabretoothtigger

sabretoothtigger wrote: »

Too much in usa and not enough in canada and down south

By dropping the Threadneedle American Select fund and boosting the Macquarie Global Infrastructure and Schroder Global Emerging Markets, I can get:

United States - 16.93%
Canada - 1.41%
Central & Latin America - 4.30%

Do you think this would be enough to make an impact, or would I need to do some further tweaking?

sabretoothtigger

If you've reduced your exposure to america by a quarter that seems significant to me. Obviously its upto you if thats good or not

A quick glance at Threadneedle and they have a good emphasis on technology and also their holdings I like how it looks. So probably a good fund if you wanted an american one right now

The schroder fund is the most exotic fund on the sl list afaik and seems very diversified. It is the one single fund thats in india afaik


Macquarie Global Infrastructure, dont really know. It has seven trent on the list, dont know the others but utilities could be great if they were involved in foreign projects.
China is spending billions on 'infrastructure' Hoover dam is the great monument to the 30's of course and I wouldnt be surprised if we had similar projects from government now

mr_fishbulb

Thanks again for all your comments. Make me feel more confident with my research.