Fund Platform Charges and Choices

TheLastMongoose

I also have an NHS pension (2015) scheme which is precisely why I DO have a LISA. The penalties for taking the pension early are terrible but there's no way I'm working full time until I'm 70! So I figured I need something else up my sleeve. Even if I wanted to work until 70 there is no significant lump sum with the 2015 scheme so the LISA money will still be useful.

Are you with the 2015 scheme? It is a good pension...except for those penalties if you take it early.

Regarding your question about the split of funds I can't tell you whats best as i'm a novice but for UK exposure I did exactly what you have suggested with the iShares fund. Only difference is I used the L&G version. The two funds then both have very low charges so it works out cheaper than an international fund that includes UK as far as I could see. You just have to decide how much of each you want. I have 80% International to 20% UK.

IanManc

cynicaldoc wrote: »

I have an NHS Pension so I don't have a SIPP or a LISA. I realise we are talking about measly savings at the moment but as my earnings increase and my ISA contributions increase then so will the charges.

At the moment I have 2/3 my money in Lindsell Train Global Equity and 1/3 in SMT. Sorry I edited my first post so many times I must have deleted the bit where I said I was planning on reducing charges (in the form of OTC) even more by moving all this to 50:50 split with L&G IN and Fidelity World. However, I see what you mean about their similarity. Perhaps L&G IN and iShares UK Equity Index would be a better spread.

L&G International and Fidelity World are similar, but not the same.

For example, the L&G has 0.39% invested in the UK, whereas Fid has 6.55%; L&G has 4.63% invested in emerging markets in Europe and Asia while Fid has 0.02%; L&G has 2.41% in south and central America, the middle east and Africa altogether while Fid has 0.19%. And L&G is currently invested in 2350 companies while Fid invests in 1660.

Remaining invested in both of these funds - with 3.47% of your total investments in the UK - would give you a "better spread" than your suggestion of keeping the L&G and buying a UK index tracker as then you'd have 50% of your investments in the UK when the UK stock market is about 6% of the world market, and the iShares fund you suggest invests in 632 companies at the moment compared with the 1660 worldwide in the Fid fund you'd be leaving.

In short, there is a good argument for holding an international tracker, and I'd suggest that you consider as well how much of your investment you want to have in the UK and perhaps add a quantity of a UK index tracker if you wish to hold more than 6% or so in the UK, of which there are plenty.

There are other worldwide trackers that you might want to look at, such as the Vanguard FTSE Global All Cap which invests in 4902 companies worldwide and has a 6.08% UK holding with an OCF of 0.24% , or HSBC FTSE All World which invests in 2838 companies and has a 6.05% UK holding and an OCF of 0.2%.