One more time Group Standard Life Pension

Summer1976

Hi

I am also member of my company's group pension scheme (Standard Life) which I joined 3 years ago.

I contribute 3.5% and my employer contributes 10%

At the moment funds invested are as follows:

Stakeholder Managed Fund 30.00 %
Stakeholder Property Fund 30.00 %
Stakeholder European Fund 40.00 %


I am thinking of switching my existing funds into the Stakeholder Property Fund 50%, Fixed Interest Fund 25% and Sterling Fund 25%.
and want my new funds/ future premiums to be paid into the funds as I have already selected:
Stakeholder Managed Fund 30.00 %
Stakeholder Property Fund 30.00 %
Stakeholder European Fund 40.00 %


Will I benefit from this?

The available funds are:

Stakeholder JP Morgan Life Moderate Fund
Stakeholder Cautious Managed Fund
Stakeholder UK Opportunities Fund
Stakeholder BGI Consensus Index Fund
Stakeholder Long Corporate Bond Fund
Stakeholder European Fund
Stakeholder Baillie Gifford UK Equity Pension Fund
Stakeholder Sterling Fund
Stakeholder European Equity Tracker Fund
Stakeholder Corporate Bond Fund
Stakeholder Overseas Tracker Fund
Stakeholder North American Fund
Stakeholder BGI Global Equity 50:50 Index Fund
Stakeholder HSBC Life Amanah Pension Fund
Stakeholder UK Equity Fund
Stakeholder Fixed Interest Fund
Stakeholder BGI UK Equity Index Fund
Stakeholder With Profits Fund
Stakeholder FTSE* Tracker Fund
Stakeholder Property Fund
Stakeholder BGI World Ex UK Index Fund
Stakeholder Ethical Fund
Stakeholder Aberdeen Balanced Fund
Stakeholder Japanese Fund
Stakeholder Global Equity 50:50 Tracker Fund
Stakeholder Index Linked Fund
Stakeholder Baillie Gifford Worldwide Equity Fund
Stakeholder Managed Fund
Stakeholder UBS Global Optimal Fund
Stakeholder International Fund
Stakeholder Baillie Gifford Managed Pension Fund
Stakeholder Stock Exchange Fund
Stakeholder Overseas Fund
Stakeholder Protection Fund
Stakeholder Global Equity 50:50 Fund
Stakeholder US Equity Tracker Fund
Stakeholder With Profits Fund

forgot to add that I am 30 yrs old.

Any advice will be appreciated,
thanks in advance

dunstonh

I dont believe you can put 50% into the SL property fund at this time. Even if you could I am not sure it would be a good move anyway.

Also, the risk profile of the funds you have chosen are more aimed towards someone in their 50s and not 30s. Dont you like the stockmarket? Not sure that sterling fund would stand up well against inflation.

Dump the mangaged fund. Bog standard managed funds are not desirable.

Summer1976

I do not dislike the stockmarket, I just do not understand it and have no time follow it all the time.

What would you recommend? Also-how often shall I monitor this and switch the funds?

dunstonh

I do not dislike the stockmarket, I just do not understand it and have no time follow it all the time.

The same could be said of property funds and fixed interest perhaps? How good is your understanding of how they work?

What would you recommend? Also-how often shall I monitor this and switch the funds?

I cant recommend anything. 1) as its against board rules. 2) it would put me in breach of FSA rules 3) its what I get paid for doing (and I am not going to do hours of research for free-sorry) 4) I dont know your risk profile

I'm sorry I cant tell you which funds to pick. Just that what you have picked would almost certainly underperform the SL managed fund. That is why the default fund is usually the balanced managed fund. It is never going to be spectacular but it will plod along and do an average job. The other funds exist for those that have advisers who can pick the funds or have the ability to pick the funds themselves. If you dont have the knowledge, willingness or ability to pick the funds and dont want an IFA to do it for you then you should perhaps consider sticking with the managed fund. (dont read that as negative but a bit of realism. Do you do your own car servicing each year?)

If you do go for fund picking, then as for switching, it doesnt need to occur that often and its not really a case of switching but mostly just rebalancing and keeping an eye on the fund range to monitor changes that may have occured. That should occur annually.

edit: btw, none of those funds are particulary specialist and the range is pretty poor but nothing there is particular difficult to understand if you look at them. SL have fund factsheets on their website with more info on the funds. Ignore past performance with a number of sectors but compare to sector average if you wish.

EdInvestor

dunstonh wrote:

I dont believe you can put 50% into the SL property fund at this time. Even if you could I am not sure it would be a good move anyway.

Also, the risk profile of the funds you have chosen are more aimed towards someone in their 50s and not 30s. Dont you like the stockmarket? Not sure that sterling fund would stand up well against inflation.

Dump the mangaged fund. Bog standard managed funds are not desirable.

I agree.Suggest you replace the Managed fund with the UK Equity Fund, description below.

http://www.trustnet.com/pen/funds/?fund=39#tope

Leave the other two as is, that's a perfectly OK choice for a pension you're going to be using in 30 years time.

Summer1976

Many thanks guys for all yours suggestions.