Thoughts on work pension fund?

bigadaj

The second fund is very uk focused and less equit based from what I can oust look very attractive to me but it's an individual choice.

[Deleted User]

bigadaj wrote: »

The second fund is very uk focused and less equit based from what I can oust look very attractive to me but it's an individual choice.

Cheers bigadaj.

Does any specific fund jump out at you below?

http://webfund6.financialexpress.net/clients/zurichcp/portfoliopricetable.aspx?schemeID=240413

bigadaj

Deleted_User wrote: »

Cheers bigadaj.

Does any specific fund jump out at you below?

http://webfund6.financialexpress.net/clients/zurichcp/portfoliopricetable.aspx?schemeID=240413

One of the global equity options if you want to keep things simple, though presumably you can mix and match.

Probably best to educate yourself a bit to be able to make your own decisions, have a read on the monevator website.

Linton

Deleted_User wrote: »

@Linton I'm about to switch to the 'Capita Active Global Equity Fund S3' but I wondered if you could help me understand if the 'Atlas Multi Asset Portfolio 1 s3' might be better...

The two fund sheets are:

http://factsheets.financialexpress.net/ZCPBF/ATLAS3_NFTW.pdf

http://factsheets.financialexpress.net/ZCPBF/ATLAS3_MJMD.pdf

Thank you

The Capita (C) fund was launched a year ago and the Multi-Asset (MA) fund 2 years ago so there is insufficient data to say anything about the long term performance. I cant find the Multi Asset fund in Trustnet so all one has to go on is the underlying asset allocation given in the information sheets which is far from complete.

The key points I pick up from the information sheets are:
1) MA has a much higher UK allocation than C, both are higher than in a World Tracker
2) MA has a much lower US allocation than C, both are lower than in a World Tracker
3) MA has a lower EM/Asia Pac allocation than C, C is higher than a World Tracker, MA perhaps much the same
4) MA Small Companies allocation is probably much the same as a World Tracker. C's is significantly higher.
5) C is 100% equity, MA has about 10% bonds

A difficult choice. MA seems somewhat staid with its high UK allocation and reliance on global multinational companies. C is a more "interesting" with a better chance of higher returns from its higher risk constituents. On the other hand I suspect that these riskier constituents would provide better diversification than the more highly correlated large companies found in MA. The low US allocation in MA seems odd considering the conventional nature of its other investments. I dont think the 10% bond allocation in MA is a significant factor.

Personally, were I in my mid 30's I would go for C. Other people may worry more about the risk.

[Deleted User]

Appreciate your time and effort Linton, thank you

[Deleted User]

Linton - just one final idea, what might you think to splitting the investment 50/50 between a Global Equity Index Tracker Fund and a Global Equity Active Fund?

There appears to be two Index-Tracker / Passive funds:

Global Equity Index Tracker: http://factsheets.financialexpress.net/ZCPBF/ATLAS3_MJNI.pdf
Global Equity Passive: http://factsheets.financialexpress.net/ZCPBF/ATLAS3_NFTZ.pdf

and one Actively managed fund:

Global Equity Active Fund: http://factsheets.financialexpress.net/ZCPBF/ATLAS3_NFTW.pdf

Would this be a sensible move? If so which Index-Tracker / Passive fund might be a preferred choice?

[Deleted User]

Deleted_User wrote: »

what might you think to splitting the investment 50/50 between a Global Equity Index Tracker Fund and a Global Equity Active Fund?

There appears to be two Index-Tracker / Passive funds:

Global Equity Index Tracker: http://factsheets.financialexpress.net/ZCPBF/ATLAS3_MJNI.pdf
Global Equity Passive: http://factsheets.financialexpress.net/ZCPBF/ATLAS3_NFTZ.pdf

and one Actively managed fund:

Global Equity Active Fund: http://factsheets.financialexpress.net/ZCPBF/ATLAS3_NFTW.pdf

Would this be a sensible move? If so which Index-Tracker / Passive fund might be a preferred choice?

Anyone? Does this sound a sensible idea? Am I overcomplicating things and maybe I should just stick with 100% Global Active? Biggest potential gains over passive / Index-tracker?

Malthusian

Any of those options are perfectly good ones, as is splitting it between two. I would go for the Capita Passive Global Equity Fund because the other one has a very large weighting in the UK (45%) but that's purely a preference and the other one is unlikely to be disastrous.

Personally I would avoid the active fund because with 0.72% fund charges plus the charges for the funds it invests in on top, it is going to be very expensive. But if you believe in active management then it's your pension. There is however no evidence that active managers can be expected to deliver higher returns than passive funds in the long term.