How to pick 1 or 2 investments

Jaguar_Skills

I am looking for a simple way to invest in a personal pension through Cavendish (they use Aviva). There is around 240 funds to invest in.

I have done research and as I have at least 30 years to invest (with an aim of retiring at 60, 29 now) I want to start relatively equity high and rebalance as time goes on. I was thinking around 85% equities.

I was looking at BlackRock consensus funds but if I am correct does this pdf show the maximum you can invest in is 70% equities under Blackrock?

http://www.aviva.co.uk/adviser/product-literature/view-document.cgi?f=sp99155c.pdf

Orwell

I am not an adviser of any kind, but most pension investment profiles that I have seen suggest 100% equities on your time frame.

Jaguar_Skills

OK same principle applies. How do you go about looking for one with 100% equities.

Having read stuff on monevator I feel 85% is about where I want to sit, 90% maybe

jamesd

It doesn't appear that there is a single excellent global tracker there. To approximate that you can use the regional Aviva BlackRock Aquila somewhere Equity Index Tracker range that it does provide.

Jaguar_Skills

Is a global tracker what I am basically talking about? Something like Vanguard 80? How do you tell what is a global tracker etc. I wasnt sure about your sentence:

To approximate that you can use the regional Aviva BlackRock Aquila somewhere Equity Index Tracker range that it does provide.

What does the above mean? Is anyone else able to assisty?

jamesd

Yes, global tracker would be an ideal base holding.

Regional trackers from the range available to you include:

Aviva BlackRock Aquila European Equity Index Tracker
Aviva BlackRock Aquila North American Equity Index Tracker

To work out the percentages of those needed to get to a global tracker's mixture you can look at the asset class breakdown of the Fidelity Index World fund. So if you wanted to mirror that mix you'd put 57.2% in the US tracker, 8.3% Japanese, 8.2 UK etc.

atush

Vanguard 80 is only 80% equities so you'd be looking for the 100 version if you are going totally equities?

Jaguar_Skills

I think I want to go about 85% to 90% equities. I just want something similar to Vanguard that invests in everything.

Whats the pros and cons of a global vs regional tracker?

redux

A tracker fund seems to be a little unambitious.

How about one of the large international investment trusts? You might beat an index by 2 or 3 per cent a year for most of the 30 years and have twice as much at the end.

atush

Ok, so Vanguard 80 plus a tracker or two will bring you to 90%??

Regional ie UK only trackers are more risky than global ones, as you are dependent on the performance of a single market/country. Global means just that so spreads the risk a bit more?

nothing wrong with buying a single market tracker if that is what you are looking for, and you are convinced a particular economy (ie say the USA) is going to do well.

But for now, until you do more research on investing and portfolio building i'd go global.

Jaguar_Skills

So now the question is which pension provider? Bowlhead seemed to suggest that at my stage a personal pension would be best, but Vanguard 80 isnt available through Cavendish personal.

So you can get a Global tracker something like Blackrock consensus 100? Am I right in thinking that that is a global tracker?