Pension funds advice/comments please

gallygirl

Would be interested in views as to how many funds it is wise to hold, and also comments on what I am investing in. Also have some funds I'm not currently funding, but will worry about those going forward.

Few facts:
Am 50, planning on retiring at 55, using btl income or cash from selling.
Will then stop paying into pensions but leave untouched till 60.
Pension 1 is non-contributory works pension with FP, so a bit limited in fund choices. For that reason, also higher charges, I don't contribute to it.
Pension 2 is SIPP with HL.
Prepared for high risk, which is why I have a lot of funds - trying to spread the risk a bit.
Would like to invest in Africa - this time last week I was but Investec closed and winding up so currently selling that. Not been in it long, around 1.3k there.
Also have civil service & local govt pensions projected to pay out a total of 2k per annum from 60.

P1 - FP - £70 a month each
First State Asia Pacific
First State GEM
JPM Natural Resources

P2 - HL - £120 a month
Axa Framlington Global Tech - best performer.

P2 - HL - £60 a month each
M&G Japan
Kames Inflation Linked
Neptune Russia
Aberdeen Emerging Markets
FS Latin America
JPM Global High Yield Bond

I also have some shares, not contributing to but planning on using the 1.3k to but Better Capital which has been going really well - any thoughts on this?

Finally also have some Tullow Oil (bought it a few years ago as couldn't find an Africa fund) and Strategic Natural Resources.

Thanks.

jem16

gallygirl wrote: »

Pension 1 is non-contributory works pension with FP, so a bit limited in fund choices. For that reason, also higher charges, I don't contribute to it.
Pension 2 is SIPP with HL.

What's the difference in charges between the FP pension and HL SIPP?

gallygirl

My understanding was that HL is 1.25% on the funds which FP also do and FP higher. The FP choice of funds is also lower. However the functionality of their website is atrocious plus it keeps freezing/crashing and I can't find the exact annual charge - I will phone and ask Tuesday.

jem16

gallygirl wrote: »

My understanding was that HL is 1.25% on the funds which FP also do and FP higher.

Most of HL's SIPP funds are 1.5% - certainly the equities you already hold are at least 1.5% with some being 1.75%.

dunstonh

Pension funds use the TER as the AMC. So, when looking at HL you must look at the TER of the funds. Not the AMC.

gallygirl

Thanks - I realise I will need to look into this. Until last year FP did not have a good choice of funds, but recently there are a lot more so once I have whittled down funds I will place where cheapest. However, the FP website doesn't exactly inspire me to want to move there.

Any thoughts on my funds?

jem16

gallygirl wrote: »

Thanks - I realise I will need to look into this. Until last year FP did not have a good choice of funds, but recently there are a lot more so once I have whittled down funds I will place where cheapest. However, the FP website doesn't exactly inspire me to want to move there.

I think it shouldn't boil down to only being about cost but you do need to be aware that HL's SIPP isn't as cheap as some would have you think. You are really paying HL for advice but receiving no advice.

gallygirl

Having cheered West Ham onto victory I am in the mood to take on FP for a little while.

First State GEM Leaders - HL TER 1.62%

FP - can't find a TER......... On the fact sheet it says:
"Indicative net charge 1.75%
Additional expenses 0.1%

The indicative net charge represents the most common yearly
charge experience for new customers investing in the fund. We
review the figure each year. Any past performance figures shown
overleaf assume we’ve made this yearly charge.
Most fund managers have to pay expenses, such as fees to auditors,
trustees and valuers. Any additional expenses are taken from the
underlying fund and are reflected in the unit price. They are reviewed
regularly and can change."

So, am I a 'new customer' each month? In which case I am paying 1.75%? However, reading the Additional Expenses is confusing. I assume these costs are common to all providers if they are built into the unit price, so it seems HP use a 1.62% TER and FP a 1.75% Indicative Net Charge? Or could FP possibly have another charge somewhere?

ETA: FP do not do any of the funds I hold with HL and the INC is higher than HL's TER for all 6 funds I just selected at random.

dunstonh

FP - can't find a TER.

That is because with pension funds the AMC is the TER (or vice versa).

On Unit Trust/OEIC funds you need to compared the TER to the pension funds to get a like for like charge comparison.

You would expect the pension funds to be a little more expensive than the UT/OEIC version in the case of external funds (those not belonging to FP) as they are typically mono charged (no initial charge). The UT versions have the potential for a bid/offer spread. Although the increasing using of OEICs is eliminating that difference. FP will be more valuable on the fixed interest securities and property side where the charges should be in their favour rather than the equities side which will probably suit the UT/OEIC version.

gallygirl

Thanks for input into charges. Any views on funds please?

gallygirl wrote: »

P1 - FP - £70 a month each
First State Asia Pacific
First State GEM
JPM Natural Resources

P2 - HL - £120 a month
Axa Framlington Global Tech - best performer.

P2 - HL - £60 a month each
M&G Japan
Kames Inflation Linked
Neptune Russia
Aberdeen Emerging Markets
FS Latin America
JPM Global High Yield Bond