Friends Provident Pension Fund Choices

xx_Law_Grad_xx

Looking for some advice on the choice of funds for my Friends Provident pension.

My employer will contribute 12% if I contribute 8%. My contributions will be made through a salary sacrifice arrangement.

The funds available to me are listed on page 11 of the brochure: -
http://www.friendslife.co.uk/doclib/bpen163b.pdf

I have selected the following funds based on me being open to above average risk.

Any advice with regards to bonds would be greatly appreciated.

UK

• FP Invesco Perpetual High Income
• FP Artemis UK Special Situations

Europe (ex UK)

• FP Cazenove European

North America

• FP Baillie Gifford North American Equity Pension

Asia Pacific

• FP First State Asia Pacific Leaders

Emerging Markets

• FP First State Global Emerging Markets Leaders

Global

• FP Baillie Gifford International

Corporate Bond

• FP Invesco Perpetual Corporate Bond

Sterling Fixed Interest Bond

• FP Artemis Strategic Bond

Loughton_Monkey

What specifically do you want to know about bonds?

You must have known something because you have chosen two bond funds.

Personally, I would tend to avoid bond funds unless I thought (a) Interest rates are going to fall, and/or (b) Companies are starting to recover and are less likely to default. Possibly you have your own views on this.

xx_Law_Grad_xx

Loughton_Monkey wrote: »

What specifically do you want to know about bonds?

You must have known something because you have chosen two bond funds.

Personally, I would tend to avoid bond funds unless I thought (a) Interest rates are going to fall, and/or (b) Companies are starting to recover and are less likely to default. Possibly you have your own views on this.

I added them in an attempt to diversify the funds and have some lower risk choices. I do agree with both your points there so looks like they should be missed out.

FP allow me to choose up to 10 funds but excluding the bonds can only manage to pick 7. The only other funds which I have not picked are cautious managed and balanced managed.

Loughton_Monkey

xx_Law_Grad_xx wrote: »

I added them in an attempt to diversify the funds and have some lower risk choices. I do agree with both your points there so looks like they should be missed out.

FP allow me to choose up to 10 funds but excluding the bonds can only manage to pick 7. The only other funds which I have not picked are cautious managed and balanced managed.

Certainly they would provide a bit more stability. I find that when equities have a 'good' day, bonds or fixed interest generally tend to move up - and vice versa. I do retain a small element of bonds but would not buy any more today.

Other ways of incorporating a bit of stability might be some 'Absolute' funds. And/or possibly some of the UK funds that concentrate on the more Blue Chip/Higher Dividend companies.

If were quite young - meaning I was looking at 20 years+ before retiring, I would 'ignore' stability, but look, instead, for 'diversification' across the globe, and into Natural Resources/Commodities. Since I am already retired, I tend to use a backbone of 'stability' overlayed with [what I see as] volatile but growth-potential funds. But it's a personal choice.

xx_Law_Grad_xx

Thanks for all of the info. I will most probably add the JPM Natural Resources fund for further diversification.

This may sound like a stupid question but I have not found an answer to it. Can I specify how much I want to contribute into each fund or is it done in equal amounts?

dunstonh

You specify the percentages into each fund.