AVIVA Work pension choosing funds?

AnotherJoe

cashbackproblems wrote: »

Eek. Do you have ideas of funds i can use to deversify the risk, maybe uk bonds?

How about mainstream markets!?

Why did you select so many niche markets? Latin America, Emerging Markets, Special Situations etc?

Why not a global approach via global funds, possibly with bonds, and after that, then niches to "tweak" allocation rather than being the core as you have now?

Malthusian

westv wrote: »

I'm always surprised when companies spend thousands over a period of years contributing to pensions but they can't find a few hundred for each employee to have advice regarding fund selection.

Most of them don't need it because they will invest in the default fund and it will do a decent job for them. (Regulations require as much.)

Those who are clued up financially and/or have a lot of money can take their own advice. Paying someone to fact-find, risk profile and advise a rank and file employee on how to invest the two grand he will accumulate in his year-and-a-half with the company would be a waste of time.

I know that some companies do pay for their employees to receive financial advice as part of their benefit package and it would be lovely if more did - but it tends to go unappreciated. Those that need advice will often have their own adviser or will DIY - those that don't have enough money to benefit are subsidising advice for their richer colleagues that their richer colleagues often don't need by way of lower salary.

Malthusian

cashbackproblems wrote: »

Eek. Do you have ideas of funds i can use to deversify the risk, maybe uk bonds?

I thought you were a very high risk investor who'd picked their own funds and individual shares for many years?

cashbackproblems

http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/documents.aspx?user=Aviva_lifecust&type=packet_lp_fund_unit_doc_factsheet&Lipper=77003382


would putting 30% in something like this help balance it out?

cashbackproblems

http://www.aviva.co.uk/adviser/product-literature/files/sp/sp99253c.pdf


this is the default...im thinking I should just switch back to this and save myself the hassle.


I am high risk but the consensus above seems to be I could lose out in the long term, maybe I can just play with my S+S ISA not my pension.

AnotherJoe

cashbackproblems wrote: »

http://www.aviva.co.uk/adviser/product-literature/files/sp/sp99253c.pdf


this is the default...im thinking I should just switch back to this and save myself the hassle.

Noooooo! Id say pick the same funds they use within it perhaps, but forget the lifestyling approach, that is out of date and even counterproductive.
And, they have 70% in the Aviva UK Equity fund and 30% in the Aviva Global Equity fund, at a minimum I'd reverse the proportions at least (in my funds I'm under 10% UK). With Brexit over the next 5-10 years, having 70% in the UK is a very bold gamble.

cashbackproblems wrote: »

I am high risk but the consensus above seems to be I could lose out in the long term, maybe I can just play with my S+S ISA not my pension.

Indeed.

dunstonh

this is the default...im thinking I should just switch back to this and save myself the hassle.

There should be a selection of multi-asset funds covering different risk profiles.

I am high risk but the consensus above seems to be I could lose out in the long term

Building a portfolio takes knowledge and understanding. Picking sector allocations and weightings almost randomly will likely lead to lower returns as you will not have the knowledge or understanding and you will make mistakes.

Multi-asset funds are boring compared to running a bespoke portfolio but it doesnt matter. There are better things in life to waste your time on.

maybe I can just play with my S+S ISA not my pension.

The same principle as the pension applies to all tax wrappers.

davieg11

My works pension is the same as Stage 2. Aviva Mixed Investment (40-85% shared) except mines is in Standard Life.

michaels

As other's have said, you should think of your total assets as a whole when trading off risk and reward not each component individually.

If you do not have any research that would lead you to pick different asset classes than professional fund managers then it makes much more sense to pick a managed fund that targets the level of risk you wish to expose yourself to than try and pick sectors at random.

If you just want to gamble bookies and casinos are lower cost than markets.

ally_n_2000

Jumping on this thread rather than starting another. I'm aiming for a passive, cheap, simple portfolio that represents the global markets. I suppose something similar to Vanguard LifeStrat 100 but without the UK bias.

Currently have:

80% Aviva SPS Global Equity Passive
10% Aviva SPS BlackRock Aquila UK Equity Index Tracker
10% Aviva SPS BlackRock Aquila Emerging Markets Index Tracker

Do you think this works? (btw the Global Equity Passive is pretty much ex UK)