Please look at my pension fund choices

pamaris

Hi,

Me again. At this point I am going to open a personal pension with Scottish Widows. I am 30 years old. I have a fairly high risk tolerance but I want things to be balanced. I have chosen the following fund allocations for my contributions:

Fixed Interest/ bonds:
New Star Fixed Interest 7%

UK Equity:
Fidelity Special Situations 5%
Invesco Perpetual High Income 25%
Jupiter Income 10%
Jupiter UK Growth 13%

Europe:
Fidelity European 20%

Japan:
Fidelity Japan 5%

Far East:
Fidelity SE Asia 5%

Global Specialist:
Fidelity Global Special sits 5%

Property:
Scottish Widows Property 5%

Does this look appropriate for me? Would it be wise to cut one or two of the managed UK equity funds and stick a tracker in there? Have I put too much in fixed interest? I am limited to 10 funds total.

Thanks:)

dunstonh

Scot Widows PPP is a good plan. You get access to the stakeholder funds as well as the external funds and they have good range.

The Glob specialist fund you have as Fid Spec sits. That isnt a specialist fund but a mixed global equity fund. It isnt very good either so I would dump that. Specialist are you natural resources, global property and other niche areas.

Fidelity Europe is a poor quality fund and Fid Spec Sits is long past it's sell by date.

I would go Schroder Tokyo over Fid Japan but there isnt much in it.
Would it be wise to cut one or two of the managed UK equity funds and stick a tracker in there?

Seeing as FTSE all share and FTSE100 trackers have consistently underperformed the sector average, I wouldnt. You appear to want to outperform the average from your selection so going with a tracker would defeat that purpose.

pamaris

OK thanks, I'll rework it... the plan has tons of selection for UK equity funds but not so much in other markets.

There doesn't seem to be much choice for European funds but maybe I just need to sort through it all again.

Singh87_2

dunstonh wrote: »

The Glob specialist fund you have as Fid Spec sits. That isnt a specialist fund but a mixed global equity fund. It isnt very good either so I would dump that. Specialist are you natural resources, global property and other niche areas.

Please tell me you're not talking about the Fidelity Special Situations Fund that used to be run by Anthony Bolton?

dunstonh

Yes the Fid Spec sits has been off my list for about 2 years now. Ever since they increased the charges. The Glob spec sits version is nothing special either.

Research articles from about 2 years back issued warnings suggesting that the fund was no longer worth recommending and so far they have proven to be right.

purch

Yes the Fidelity Special Situations Fund has not been performing anywhere near the level you would expect of such an over-hyped product for quite a few years

Browntrout_2

purch wrote: »

Yes the Fidelity Special Situations Fund has not been performing anywhere near the level you would expect of such an over-hyped product for quite a few years

This fund has had periods of underperformance.
According the book 'Investing with Anthony Bolton' - The Anatomy of a stock market phenomenon - whichever year between 1980 and 2003 that an investor bought the fund, it would have produced a higher return than the stock market over a subsequent seven year period.

As a contrarian investor in 4 year bull market Bolton will have to stand aside, however after the period of underperformance in 89 to 91 where it was 4th quartile the fund bounced back to 1st quartile agian and stayed there.

Maybe Shah cannot keep this going, who knows, only time will tell though.

Singh87_2

dunstonh wrote: »

Yes the Fid Spec sits has been off my list for about 2 years now. Ever since they increased the charges. The Glob spec sits version is nothing special either.

Research articles from about 2 years back issued warnings suggesting that the fund was no longer worth recommending and so far they have proven to be right.

I sincerely hope you look into a change of career.

http://business.timesonline.co.uk/tol/business/money/funds/article1813020.ece - Read this, and stop mis-informing people.

Whether, Sanjeev will continue in Bolton's footsteps is a different matter, but previously Bolton has done brilliantly.

jamesd

Singh87, that story supports Dunsonh's thoughts on the fund. Planned retirement, split into two funds with unknown managers and an underperforming and downrated investment company. Also a contrarian defensive fund during a bull market that has run for two years since dunstonh's view was formed. Then there's the comparative performance of the fund which supports the view that he was right, since there were better choices to make.

Bolton has had a brilliant history but that doesn't include the last two years.

dunstonh

Singh87 wrote: »

I sincerely hope you look into a change of career.

http://business.timesonline.co.uk/tol/business/money/funds/article1813020.ece - Read this, and stop mis-informing people.

Whether, Sanjeev will continue in Bolton's footsteps is a different matter, but previously Bolton has done brilliantly.

Thank you for posting an article that fully backs up my views.

How you managed to read anything different in to that article goodness knows. I suggest next time you decide to post in such a negative manner towards an individual, you get your facts right first.

Singh87_2

dunstonh wrote: »

Thank you for posting an article that fully backs up my views.

How you managed to read anything different in to that article goodness knows. I suggest next time you decide to post in such a negative manner towards an individual, you get your facts right first.

I am very sorry, I failed to see that you mentioned that he has underperformed in the last 2 years. I know you had posted it above, however I just didn't take it in.... Please accept my aplogies.