pension fund types

head_in_a_spin

Hi All,

After finallly realising i just dont have the skill (or time) to keep analysing my pension funds etc and chopping and changing i have finally decided i'm just going to put my faith in the market.
As its a long term investment i would ideally like to invest in the likes of the ftse 100 or all shares index.
I have an Aviva pension with my work. There are loads of funds to choose from but i dont see anything that is obviously a ftse tracker. There are numerous ones of these types:

UK all companies pen
UK equity income pen

Are these the closest thing there is then to tracking the ftse?
Does anyone know why there isnt just a ftse 100 or all shares index fund available to select from Aviva pension funds?

Thanks!!

Linton

head_in_a_spin wrote: »

Hi All,

After finallly realising i just dont have the skill (or time) to keep analysing my pension funds etc and chopping and changing i have finally decided i'm just going to put my faith in the market.
As its a long term investment i would ideally like to invest in the likes of the ftse 100 or all shares index.
I have an Aviva pension with my work. There are loads of funds to choose from but i dont see anything that is obviously a ftse tracker. There are numerous ones of these types:

UK all companies pen
UK equity income pen

Are these the closest thing there is then to tracking the ftse?
Does anyone know why there isnt just a ftse 100 or all shares index fund available to select from Aviva pension funds?

Thanks!!

Aviva have several pension index funds, particularly under the Aviva Blackrock label - you can see them on Trustnet. The range of funds offered to you is probably decided between Aviva and your employer. Perhaps you should ask your pension/HR people.

dunstonh

As its a long term investment i would ideally like to invest in the likes of the ftse 100 or all shares index.

That is pretty poor investing.

Does anyone know why there isnt just a ftse 100 or all shares index fund available to select from Aviva pension funds?

Most Aviva pensions offer a tracker apart from their very basic ones.

head_in_a_spin

Thanks for the replies. I really appreciate it.

As for the comment that this is pretty poor investing, let me explain why i think its reasonably smart, at least for people such as myself.
Time and time again i keep seeing the same comments from many respectable sources that by and large most fund managers simply fail to outperform the market.
It is also the reason i have already put my shares ISA into a ftse100 tracker.
For people like myself who have absolutely no real experience or idea on how to pick stocks i think its the best option.
Fund managers are supposed to be the experts but if the majority can't beat the market over any significant length of time then what real hope is there for the rest of us.

Maybe i'm naive, i'd like to hear other opinions?

hugheskevi

There is a legitimate managed vs tracker debate to be had, and there are many threads on that.

But whatever you prefer, there is also diversification about which few would disagree (maybe a few precious metal fans perhaps!). The FTSE 100 is dominated by a small number of companies, although they are at least quite international.

Even if you don't think managed funds justify their charges and want trackers, you should be looking for at least some diversification across asset classes (equities, fixed interest, property, commodities, etc) as well as geography (North America, Asia, UK, Europe), perhaps size of company (large/mid/small companies) and maybe add in some emerging markets too I]that isn't exhaustive, just examples[/I. Pretty much all of those can be tracked, one way or another for better or worse.

BLB53

There is a good article on pensions on www.monevator.com this week which may help? Also some good articles on trackers if you search.

dunstonh

For people like myself who have absolutely no real experience or idea on how to pick stocks i think its the best option.

I totally disagree. You are putting all your eggs in one basket and its a basket that has been a dire performer for the last 15 or more years and no expectation of improvement.

Fund managers are supposed to be the experts but if the majority can't beat the market over any significant length of time then what real hope is there for the rest of us.

This isnt about managed vs tracker. Its about asset/sector allocation. However, whilst you brought that up, its wrong to say that trackers beat managed as there are plenty of sectors where there are no trackers or the benchmark is not ideal. You should use the best of both. Back on the main point though, your problem is sector allocation. Going 100% into UK equity,even if you you want mid table consistency, is still a bad option.

Do you really think the UK is going to be the best place to invest for the long term?

Time and time again i keep seeing the same comments from many respectable sources that by and large most fund managers simply fail to outperform the market.

If you are going to get into that debate then you have misunderstood it if your intention is to go 100% into a narrow single sector focused tracker fund. It would be equally wrong to use a single sector managed fund as well.

atush

Basically you are intendign to put all your eggs in a UK basket. Not wise, and while trackers can be good, the FTSE 100 is the last tracker I am going to buy.

There are some good companies paying good dividends in the FTSE100, but those I am buying individually.

utigers

Have a look at the Vanguard Range, they offer an all in one 'balanced' portfolio suited to your age, it might be what you are after.

gadgetmind

utigers wrote: »

Have a look at the Vanguard Range, they offer an all in one 'balanced' portfolio suited to your age, it might be what you are after.

Yup, Vanguard LifeStrategy. Splendid funds, but you need to choose your platform with care.

I'm told that HSBC now have their own versions of these but know little about them.

head_in_a_spin

Hey All,

Thanks again for your input.
I see what you are getting at
dunstonh, i understand now where you are coming from, thanks...it makes sense. So maybe hugheskevi's suggestion about keeping with the tracker idea but also diversifying into different sectors would be an improvement to my original plan.

This site is great