Which looks more diversified to you?

samiam85

I would normally invest in Vanguard Lifestrategy 80/20 but my company has been forced to setup a pension for me. They have chosen Aviva.

I am struggling to decide on a stakeholder pension. I am looking for as passive / cheap / diversified as possible. I am under 30 so I am looking at the more risky end of the options available as I have plenty of time to migrate to less risky options closer to retirement.

I have been auto enrolled in
"Diversified Assets Fund II S6"
http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/doc...

I was looking at:
"Aviva Investors Multi-asset Fund V Class 9 Accumulation"
https://www.direct.aviva.co.uk/myfuture/FundChoice/FundHub/B...
Mainly because it was the only one I could obviously see had some diversification.


Here are the 0% extra fees (I 0.75% is the minimum) which have a risk rating of 4 or 5. Are there any diversified funds I should also be looking at?

Thanks so much for your help in advance.

Aviva Pension Alliance Trust Sustainable Future Absolute Growth S2
Aviva Pension Alliance Trust Sustainable Future Absolute Growth S6
Aviva Pension Alliance Trust Sustainable Future European Growth S2
Aviva Pension Alliance Trust Sustainable Future European Growth S6
Aviva Pension BlackRock Aquila European Equity Index Tracker S6
Aviva Pension BlackRock Aquila Overseas Eq Consensus Tracker S6
Aviva Pension BlackRock Aquila Pacific Rim Equity Index Tracker S6
Aviva Pension European Equity S2
Aviva Pension European Equity S6
Aviva Pension Pacific Equity S2
Aviva Pension Pacific Equity S6
Aviva Pension Alliance Trust Sustainable Future Global Growth S2
Aviva Pension Alliance Trust Sustainable Future Global Growth S6
Aviva Pension Alliance Trust Sustainable Future Managed S2
Aviva Pension Alliance Trust Sustainable Future Managed S6
Aviva Pension Alliance Trust Sustainable Future UK Growth S2
Aviva Pension Alliance Trust UK Ethical S2
Aviva Pension Alliance Trust UK Ethical S6
Aviva Pension BlackRock Aquila 50:50 Global Equity Index Tracker S6
Aviva Pension BlackRock Aquila 60:40 Global Equity Index Tracker S6
Aviva Pension BlackRock Aquila 70:30 Global Equity Index Tracker S6
Aviva Pension BlackRock Aquila Consensus S6
Aviva Pension BlackRock Aquila Japanese Equity Index Tracker S6
Aviva Pension BlackRock Aquila Over 15 years Gilt Index Tracker S6
Aviva Pension BlackRock Aquila Over 5 yrs Index-Lkd Gilt Tracker S6
Aviva Pension BlackRock Aquila UK Equity Index Tracker S6
Aviva Pension BlackRock Aquila US Equity Index Tracker S6
Aviva Pension Global Equity S2
Aviva Pension Global Equity S6
Aviva Pension Index Linked Gilt S2
Aviva Pension Index Linked Gilt S6
Aviva Pension International Index Tracking S2
Aviva Pension Long Gilt S2
Aviva Pension Long Gilt S6
Aviva Pension Multi-asset Fund V S6
Aviva Pension UK Equity S2
Aviva Pension UK Equity S6
Aviva Pension UK Index Tracking S2
Aviva Pension UK Index Tracking S6
Aviva Pension US Equity S2
Aviva Pension US Equity S6
Aviva Pension Flexible Investment S6

Linton

As far as I can see the both the multi-asset funds you list are only some 70% invested in equities. If you want to go to riskier funds, and at your age this could well be justified as you drip feed and also have many years until retirement, perhaps you should consider your own blend of focussed regional equity funds.

samiam85

Thanks for the reply. I am not keen on the hassle of rebalancing regularly as I think it is beneficial for lots of reasons to just leave it alone.

What do you think about the diversification of these 2 funds?
Aviva Pension Alliance Trust Sustainable Future Absolute Growth S2
Aviva Pension Alliance Trust Sustainable Future Absolute Growth S6

All opinions welcome, thanks again for your time.

Linton

samiam85 wrote: »

Thanks for the reply. I am not keen on the hassle of rebalancing regularly as I think it is beneficial for lots of reasons to just leave it alone.

What do you think about the diversification of these 2 funds?
Aviva Pension Alliance Trust Sustainable Future Absolute Growth S2
Aviva Pension Alliance Trust Sustainable Future Absolute Growth S6

All opinions welcome, thanks again for your time.

As far as I can see these two funds are identical, at least as far as the underlying investments are concerned. Perhaps they have different charging regimes.

They invest 90% in equity (shares) rather than bonds, which is good for a very long term investor and are well globally diversified. By far the largest investment area is the US with nearly 50% of the equity holdings. Some people may like this as it represents the US % of the world market while others such as myself would feel that its a little high for optimum diversification.

You can look up data on fund allocations yourself. Go to www.trustnet.com, select pension funds and find the one you are after. Then look at "portfolio breakdown". You may not be able to find the exact S number, but Google can probably track that down for you.

dunstonh

As far as I can see these two funds are identical, at least as far as the underlying investments are concerned. Perhaps they have different charging regimes.

The series designation indicates different charging or versions that are specific to one type of contract. S6, for example, is offered on their current version of their personal pension.

S2 would be a different charging level. It is possible for a pension type to have access to different series with with some providers. i.e. they may offer the stakeholder range as well as the personal pension range. Or they may have obtained special terms to offer a selected range of alternatives at a lower price than the normal for that contract.

I am not keen on the hassle of rebalancing regularly as I think it is beneficial for lots of reasons to just leave it alone.

Rebalancing tends to result in higher returns over the long term. Especially in volatile markets. So, you should either rebalance or select multi-asset funds which auto-rebalance within the fund.

samiam85

Thank you both for your reply.

Rebalancing tends to result in higher returns over the long term. Especially in volatile markets. So, you should either rebalance or select multi-asset funds which auto-rebalance within the fund.

Are the 4 funds mentioned the type that would auto-rebalance?

Which would you both choose?

Thanks again