Dismal pension performance

Faraday_Cage

BLB53 wrote: »

If you want to post a list of the unit/investment trusts which have done ok, people could comment as to whether they think they are suitable to hold within the sipp?

These have all done OK for me so far, though I've held them for differing lengths of time:

Aberdeen Emerging Markets
Fidelity India Focus
Newton Asian Income
Artemis UK Smaller Companies
Fidelity South-East Asia
Invesco Perpetual Monthly Income Plus
Threadneedle European Smaller Companies.

There are a couple of others in an ISA, details not to hand.

The Pension ones are:
Skandia Artemis European Growth
Skandia Fidelity Global Properties
Skandia Jupiter Income
Skandia M&G Global Basics
Skandia Artemis Income.

Faraday_Cage

Linton wrote: »

What is important is what investments you believe will take you from where you are now to a better place. When you have researched, reflected, and come to a conclusion then that is the time to move.

Timing's unimportant then? You surprise me, but I'll take your advice on board. Thanks.

Faraday_Cage

Eellogofusciouhipoppokunu wrote: »

Not everyone's pension is tanking.

Sure. I realise I'm not alone, but a friend the same age as me has just received his pension valuation and it's four times the size of mine. Admittedly he started his three years earlier but his contributions have been much smaller.

You've done well - I congratulate you.

zagfles

Faraday_Cage wrote: »

These have all done OK for me so far, though I've held them for differing lengths of time:

Aberdeen Emerging Markets
Fidelity India Focus
Newton Asian Income
Artemis UK Smaller Companies
Fidelity South-East Asia
Invesco Perpetual Monthly Income Plus
Threadneedle European Smaller Companies.

You should be able to buy all those funds at no initial charge (or very little charge) in any decent SIPP.

Some will also give you a discount on the annual management charge (HL are doing so from next year).

Faraday_Cage

Linton wrote: »

Why? Cant you get much the same range of funds from Scandia?

When I tried to switch funds online the system wouldn't let me - maybe I was doing something wrong but I have a feeling only the adviser can do it?

Also, beware of blindly investing in things that have done well.

Indeed. In fact I've often done the opposite, investing in funds that have historically done well but recently dipped. Maybe I've been lucky but it's an approach that's served me well so far.

However as bonds are redeemable for a fixed amount on maturity there is a maximum price. We would seem to be approaching that.

Useful comment about bonds. Thanks.

jamesd

Skandia can be quite inexpensive, depends on the deal you're on. Before moving, take a look at the costs of each place so you don't just find yourself moving to a place that'll cost more to hold the same investments.

Even if you decide that you want to move, if it's to a no advice platform you may find it useful to wait a year because that's when those have to switch to unbundled pricing for new customers. So until then, the actual pricing you'll end up with will be uncertain. A few have switched already, you'll recognise them from significant annual charges and lower per fund annual management charge.

SIPPs are the method of choice if you want to hold shares or investment trusts, otherwise they aren't really necessary and might, or might not, be more expensive, depending on the specific deals you get. So far you haven't mentioned any investments that require use of a SIPP, so you can use any of the whole range of personal pension choices that let you pick which funds to use.

Faraday_Cage wrote: »

When I tried to switch funds online the system wouldn't let me - maybe I was doing something wrong but I have a feeling only the adviser can do it?

Best to give them or the adviser a call to find out. Nothing actually blocks you changing the investments there, just a case of finding out how to do it. Good chance to find out how much you're actually paying, so you can compare it to alternatives as well.

Do watch it on the higher quality bonds, including gilts. Pretty thoroughly into bubble territory. The high yield and strategic bond funds are somewhat different, less affected by the rush to high quality that has driven up the prices of the other stuff. Invesco Perpetual Monthly Income Plus is in the less affected area.

For another unfashionable area you might look at commercial property funds that own actual properties, as an alternative to the higher grade corporate bonds. Very out of favour and it'll be a few years to recovery.

Europe is also out of fashion, of course. Lots of people avoiding that and you can see it in the past performance. Should be interesting after there's been some sustained recovery, whenever that happens. Like the UK, smaller companies funds have been doing quite well there over the last year or so and seem able to continue to do that for a while longer.

zagfles

jamesd wrote: »

SIPPs are the method of choice if you want to hold shares or investment trusts, otherwise they aren't really necessary and might, or might not, be more expensive, depending on the specific deals you get. So far you haven't mentioned any investments that require use of a SIPP, so you can use any of the whole range of personal pension choices that let you pick which funds to use.

Could you give an example please, for instance how you could invest in Aberdeen Emerging Markets for no initial charge and a discounted AMC outside of a SIPP?

dunstonh

zagfles wrote: »

Could you give an example please, for instance how you could invest in Aberdeen Emerging Markets for no initial charge and a discounted AMC outside of a SIPP?

Skandia personal pension would be one. Skandia decided to use a PPP rather than a SIPP for their platform. Being a bundled platform at present, they use the normal retail UT/OEIC but allow the option of trail to be rebated (but not the platform commission).

atush

Faraday_Cage wrote: »

That sounds like pretty solid advice to me. I will look into this straight away. I imagine there will be transfer fees to look out for........any other pitfalls I should be aware of?

Thank you so much for your positive response.

This would have been my advice, ie a Sipp, if you have been investing outside a pension and doing well. I think, getting into Skandia wasn't your(your advisors mistake) but what you invested in INSIDE the skandia platform may have. Did you choose the funds? Did they? Did they choose just the expensive Managed funds? Why didn't you choose for your Skandia pension the funds you invested in outside?

If you do go Sipp, it might pay to do some research on the funds you hold already outside, and if any are cyclical have a look to see if they have potential for further growth under the current market conditions rather than just copying your current portfolio.

There is money to be made out there. I have 2 w/p pensions that made money in the last 5 bad years, and other invested pensions that did too. Yes, my non w/p pnes lost money in the slump. but they picked up afterwards.

The key is to keep investing as when prices fall you pick up more units for each pound invested. I just love pound cost averaging.

So, look at your Skandia platform investments and perhaps rejiggle (or at least invest 'new' money in new funds/areas). Then look at a SIPP for the future. No reason you can't do both. And fill your ISAs each year too.

zagfles

dunstonh wrote: »

Skandia personal pension would be one. Skandia decided to use a PPP rather than a SIPP for their platform. Being a bundled platform at present, they use the normal retail UT/OEIC but allow the option of trail to be rebated (but not the platform commission).

So how would you buy through them with no initial charge? Or are you forced to go via an IFA, who'll presumably want a cut even if you've decided for yourself exactly what you want to invest in?