Standard life pension funds

Moneysavingnoob_2

I want to either make AVCs or open a SIPP to supplement my final salary pension. The only funds available to me via AVCs are:
Standard life managed pension fund
Standard life uk equity pension fund
Standard life money market pension fund
Standard life deposit and treasury pension fund.

Is anyone familiar with these? Can I construct a decent portfolio with just these funds? I'm worried I'd be limiting myself while there are more options if I open a SIPP. I Googled the above funds and they didn't look that impressive to me although I'm a novice, admittedly! Even so, I'm tempted by the SIPP and DIY investing. My workplace pension is a good one so this would be just a side pot and I've been nudged towards this purely for the tax relief as I'm a few thousand into the higher tax band at the moment. The total annual charge for the above funds are 1.01 or 1.02%. A BestInvest SIPP with a few tracker funds might be cheaper too perhaps?
What would people do in my situation? Thanks

AlanP_2

You may find that the headline price with the AVC funds is discounted, they are with the Local Gov AVC through SL that my wife has.

Advantage to AVC method is it's easy - money deducted from salary, paid to SL, job done no messing about with claiming HR tax relief through HMRC.

Downside is that it is often linked in terms of taking it to the main pension scheme commencement date so it is less flexible if you wanted to retire early say.

Can you use the AVC Pot to take your 25% TFLS out of the overall pension? This way you don't have to commute any of your ongoing Annual Pension to take a lump sum at retirement?

From what I have read on here and seen with our AVC is that most funds on offer are from large institutions and are generally aimed at "less exciting investment areas" that "SHOULD" be safe'ish.

From the employers point of view that is sensible, they don't want moans and groans from disgruntled employees dismayed that the Outer Mongolian Small Cap Equity Fund they were given the chance to buy has tanked.

What that means is you need to make sure you are not comparing Apples with Oranges when you look at their relative performance.

I haven't looked at your specific options but my general observation on the SL funds that are on offer through the LGPS AVC is that they are overweight to the UK compared to my ideal.

ColdIron

Of the options you have shown the Managed Pension Fund is probably the one you want for a one stop shop. It's a generalised equity fund with reasonable geographical and industry sector coverage

See the factsheet:
http://www.trustnet.com/Factsheets/Factsheet.aspx?fundCode=STPM&univ=P

maxie014

Similar to my pension avc choices but we have a few more,the pension lady told me 90% of people pay into the managed pension fund,but think the charges we pay are 0.6%

Moneysavingnoob_2

Thanks all, especially Alan as that gives me much to think about. I think a SIPP will suit me better as it offers the flexibility I think I'll want from a side pot. Just need to decide on platform. Cavendish online fund supermarket pension sound good to get me started? I plan to mimic the slow and steady passive portfolio from monevator while I get to grips with it all.