Does anyone Recognize this Pension Fund?

Thrugelmir

VLS comes in different forms. The longer the investment window the greater the exposure to equities. Perhaps they consider UK stocks to offer better value currently. Hence the higher weighting. 

SonOf

 Can anyone clarify why, for a 'default-medium-risk-type-pension', they are running with such high risk?

In the growth stage, 85/15 to 90/10 is not high risk.  And doesnt the default have automatic risk reduction on it as you get closer to retirement?

And also, with UK equities at 27.5% and US equities at 14.2% why would they be choosing to run it so differently to the sector allocation in the revered Vanguard lifestrategy funds?
Why would they want to run it the same as Vanguard?  Its not as if the Vanguard LS funds are best in class and one of the criticisms of it is the asset allocation.     

Sheriff_Fatmen

SonOf said:

 Can anyone clarify why, for a 'default-medium-risk-type-pension', they are running with such high risk?

In the growth stage, 85/15 to 90/10 is not high risk.  And doesnt the default have automatic risk reduction on it as you get closer to retirement?

And also, with UK equities at 27.5% and US equities at 14.2% why would they be choosing to run it so differently to the sector allocation in the revered Vanguard lifestrategy funds?
Why would they want to run it the same as Vanguard?  Its not as if the Vanguard LS funds are best in class and one of the criticisms of it is the asset allocation.     

Thanks for your comments.
Portfolio one, two & three = Adventurous, Balanced, Cautious
10 yrs from retirement the Balanced moves from a ratio of 85:15 (90:10 at present) to 70:30 equities/bonds
5 yrs from retirement the Balanced moves from a ratio of 70:30 to 40:60
10 yrs from retirement the Cautious moves from a ratio of 70:30  to 40:60
5 yrs from retirement the Cautious doesn't change.
Her planned retirement is in 13 years time and she recently used the risk profile tool on Vanguards website and it came out as 70:30 equities/lower risk.  I'd be interested to hear your thoughts as to whether we should look to move her out of the Balanced & into the Cautious just now to protect some of the gains made over the last few years, with a view to possibly moving back into the Balanced in 3 yrs or so or sooner if there is a market correction?