Aviva Personal Pension Selection

andmas

After considering a SIPP I decided that I did not require the additional flexibility of investment choices and so am transferring my existing personal pension through Cavendish Online to get the AMC reduced to 0.4% (plus the additional yearly charge and FMEC for external funds).

Any comments on my fund selection below?

Invesco Perpetual Monthly Income Plus S6 5%
Invesco Perpetual Distribution S6 15%
Old Mutual UK Mid Cap S6 20%
INVESCO UK Smaller Companies S2 5%
BlackRock Continental European S2 10%
BlackRock Aquila US Equity Index Tracker S6 20%
First State Asia Pacific Leaders S6 10%
GLG Japan Core Alpha S6 5%
First State Global Emerging Market Leaders S6 10%

I've worked out that the Asset allocation will be:
International Bonds 7.0%
UK Corporate Bonds 5.0%
UK Equities 28.6%
International Equities 54.0%
Other 0.5%
UK Gilts 0.3%
Investment Trusts 0.1%
Cash and Equivalents 3.6%
Property 1.0%

and the regional breakdown will be:
Australia & New Zealand: 1.5%
Cash and Equivalents 3.6%
Developed Europe - Excl UK: 17.5%
Developed Asia: 4.1%
Emerging Europe: 0.5%
Emerging Asia: 8.1%
Japan 5.1%
Middle East & Africa 1.3%
North America: 21.7%
Non-Classified: 0.6%
Property 1.0%
South & Central America: 1.1%
UK 33.9%

All comments appreciated before I sign on the dotted line!

mania112

Looks good to me

robatwork

What age are you?
That portfolio seems quite equity heavy, which may be appropriate

andmas

robatwork wrote: »

What age are you?
That portfolio seems quite equity heavy, which may be appropriate

It is probably equity heavy for my age (54) but bonds / gilts don't seem to be the 'safe haven' that they used to be. Do you think increasing the Invesco Perpetual Monthly Income Plus S6 fund to 10% and say dropping the Japan fund to give around 16% in UK Corporate & International Bonds would be advisable?

sterlingstash

All of your selected funds are externally managed and hence have an additional fee to the 0.4% Aviva AMC. It does look fairly balanced as a portfolio, but as you are paying the additional management charge anyway, why not let the fund managers micromanage the asset allocation.

Of my selection (running for only 5 months or so granted), I chose 3 lifestyle type funds for 60% of my portfolio, spreading it between investment houses to reduce risk of a dog fund. Then added 40% 'satellite funds with my particular ideas about growth markets. The best of the balanced managed funds has been
Invesco managed pension S2, with Aberdeen multi-asset S2 and Aviva mixed investment (40-85%) trailing a little way behind (over this very short period)

Thing is, if things start to go sour in a particular market (eg emerging markets in the past couple of weeks) would you be active enough to readjust or rebalance

sterlingstash

Also, I have started to drip feed into a more cautiously managed fund (ie more bond heavy). I have same concerns as you about bonds being rather less of a safe haven, but I need to start to slowly increase my exposure (although 20 years your junior). You might want to allocate new contributions to something like this, as if the bond bubble bursts you won;t have lost much, but will be taking advantage of lower unit prices.