Pension Portfolio composition

w00519772

I have a Friends Life pension plan. I am 32 years old and I want to have a medium to adventurous attitude to risk for my pension. At the moment my entire pensionis invested here: http://factsheets.finexprestel.com/frie/_B442NG6.pdf, which is clearly not medium to adventurous. I was thinking about going something like this:

35% - http://factsheets.financialexpress.net/frie/_B1FMP24.pdf
15% - http://factsheets.financialexpress.net/frie/_B06WLH3.pdf
50% - http://factsheets.financialexpress.net/frle/OQ42.PDF

I have chosen these based on the Trusnet rating: http://www.trustnet.com/

I would be grateful for your comments.

green_man

I'm not so sure that's wise.

Your original fund is a global mixed asset fund, this is perfect for those that just want to forget about it and regularly invest. The funds you have as alternatives are just really UK and Japan Equities, so you are missing a huge area of the world. (note I haven't looked at performance of any of these just the fund strategy)

w00519772

green_man wrote: »

I'm not so sure that's wise.

Your original fund is a global mixed asset fund, this is perfect for those that just want to forget about it and regularly invest. The funds you have as alternatives are just really UK and Japan Equities, so you are missing a huge area of the world. (note I haven't looked at performance of any of these just the fund strategy)

I don't understand what you mean by "just want to forget about it and regularly invest". These are the funds I have access to: https://customers.friendslife.co.uk/funds/fund-centre/pension-funds/pension-fund-feed.jsp

I did some research which suggested:

20% domestic stocks
50% world stocks
20% intermediate term bonds

dunstonh

Pretty awful selection. Lacks structure and diversification and is way above the risk profile for someone calling themselves medium to adventurous.

I did some research which suggested:

20% domestic stocks
50% world stocks
20% intermediate term bonds

So, why are you not acting on that research. BTW, where is property? and 20% bond is not consistent with your written risk profile.

TCA

w00519772 wrote: »

I did some research which suggested:

20% domestic stocks
50% world stocks
20% intermediate term bonds

Although not a perfect match for the above mix, maybe look at these two below. As dustonh said though, a 20% bond ratio wouldn't be classed as adventurous:

http://factsheets.financialexpress.net/FRLE/OR66.PDF

http://factsheets.financialexpress.net/FRLE/OG98.PDF

w00519772

I am looking for a pension portfolio that is medium to adventurous and diversified. I am struggling a bit.

TCA

w00519772 wrote: »

I am looking for a pension portfolio that is medium to adventurous and diversified. I am struggling a bit.

Medium to adventurous is rather vague. What do you mean by adventurous? All equities? High proportion of riskier investments like emerging markets or natural resources? You won't get adventurous with 20% bonds.

How about the FL Adventurous Index Fund of Funds below? Virtually all equities barring some money market. Still not ultra-high risk though, so depends what you want:

http://factsheets.financialexpress.net/FRLE/N0R8.PDF

w00519772

TCA wrote: »

Medium to adventurous is rather vague. What do you mean by adventurous? All equities? High proportion of riskier investments like emerging markets or natural resources? You won't get adventurous with 20% bonds.

How about the FL Adventurous Index Fund of Funds below? Virtually all equities barring some money market. Still not ultra-high risk though, so depends what you want:

http://factsheets.financialexpress.net/FRLE/N0R8.PDF

I was thinking about that. I was just a little worried about putting all my eggs in one basket (a single fund). However, I guess it is diversified with interests in multiple regions.

Maybe I could put 80% in this fund and a further 20% here: http://factsheets.financialexpress.net/frie/_B1FMP24.pdf. This fund is well rated on Trustnet. Plus I read this: http://www.trustnet.com/News/562761/robin-geffen-its-clearly-too-early-to-take-profits-in-japan/. I don't believe everything I read though!

colsten

w00519772 wrote: »

I was just a little worried about putting all my eggs in one basket (a single fund).

If the fund is diversified enough, there is no reason for not going for a single fund. It all comes down to what the fund is made up of, and how the fund will be managed.

dunstonh

I was thinking about that. I was just a little worried about putting all my eggs in one basket (a single fund).

You wouldnt be though as its a fettered fund of funds. However, whether the assets are held in one fund or 10 funds, the risk to you is the same.

w00519772

dunstonh wrote: »

You wouldnt be though as its a fettered fund of funds. However, whether the assets are held in one fund or 10 funds, the risk to you is the same.

You sound more convinced than in your response to my original suggestion?!

What do you think of the idea of putting 20% in the Japanese fund to increase the level of risk?

I am relatively new to this. My research suggests that as I am quite young (33), I should have a more "adventurous" risk appetite.