Managed or Tracker fund, which is best?

Thrugelmir

Deleted_User wrote: »

Share buybacks are essential to prevent dilution of shareholder equity.

I prefer to keep an open mind. Rather than substantiating a conviction. As an investor you'll never cease to experience new once in a life time events. Technology may have improved the flow of information but companies are still run by people.

[Deleted User]

AnotherJoe wrote: »

But if you look at most of the major constituents of either of those they are large multinationals that pretty much just happen to be domiciled here and most of their income comes from overseas. Shell, BP, Unilever, BAT, Rio Tinto etc. If the Pound rose they woudl fall.
So, is that really a "home" bias ?

That’s true. To some extent. Funny, but usually this point is used to justify why you don’t need international stocks.

Have you read the White Paper by Vanguard?

[Deleted User]

Prism wrote: »

Due to lots of irregular payments in I use XIRR in Excel for my number (15% over three years)

Not bad, huh?

bostonerimus

Prism wrote: »

You are right as there are a few ways to calculate the gains and we don't all include the same pools. I for example have only considered my SIPPs and ISAs so far, however I have recently started up a fixed account 'bond' ladder which i will include from this point.

Due to lots of irregular payments in I use XIRR in Excel for my number (15% over three years)

I use the return that I've seen in my Vanguard accounts going back to the 1990s.....I don't include the return on my first ever pension investment which was a deferred annuity that I bought back in 1987. I'd put $16k into it by 1990 and I haven't touched it since. It's now worth $105k and is crediting at 4.6% this year. I'll probably never touch it and I expect it to be worth around $300k when I die and I have the beneficiary designated as a local charity.

This type of guaranteed product from an insurance company with a reasonable interest rate is basically unavailable today, but it could have easily funded my retirement with practically zero risk if I had continued to pay into it over the years. When I think about that and the demise of the DB pension plan, the whole DC, CETV and direct exposure of so much of people's financial worth to the markets seems to be a very Thacherite/Hayek faustian bargain.

bostonerimus

Prism wrote: »

You are right as there are a few ways to calculate the gains and we don't all include the same pools. I for example have only considered my SIPPs and ISAs so far, however I have recently started up a fixed account 'bond' ladder which i will include from this point.

Due to lots of irregular payments in I use XIRR in Excel for my number (15% over three years)

so annual compounding average is 4.8%

[Deleted User]

bostonerimus wrote: »

so annual compounding average is 4.8%

I think he means 15% annuallized because he uses XIRR. Which is good, even accounting for GBP depreciation.

Prism

bostonerimus wrote: »

so annual compounding average is 4.8%

Yes 15% annualized, though the pound is 10% cheaper from three years ago which helps and its also 100% equities. My future returns should be a bit lower as I have just added a cash/bond/savings lump sum to my portfolio.

[Deleted User]

bostonerimus wrote: »

This type of guaranteed product from an insurance company with a reasonable interest rate is basically unavailable today, but it could have easily funded my retirement with practically zero risk .

Annuity risk isn’t zero. We’ve seen huge insurance companies go bankrupt, should be a wake up call. Nor is DB pension risk “zero”.

Prism

bostonerimus wrote: »

I use the return that I've seen in my Vanguard accounts going back to the 1990s.....I don't include the return on my first ever pension investment which was a deferred annuity that I bought back in 1987. I'd put $16k into it by 1990 and I haven't touched it since. It's now worth $105k and is crediting at 4.6% this year. I'll probably never touch it and I expect it to be worth around $300k when I die and I have the beneficiary designated as a local charity.
.

Most of my early pension was in some unknown 'black box' of an Aviva (Norwich Union) pension which provided no stats beyond a yearly total and certainly no idea of returns. It never appeared online so I had to do a transfer to get any visibility of it. Therefore, unless I could be bother going through my entire working life's worth of statements looking for the payments I will never know what happened during those first 15 years.

Anyway, not that it really matters now - I have what I have and should be able to partly retire somewhere between 55 and 60 if I have the desire and my luck holds.

bostonerimus

Deleted_User wrote: »

Annuity risk isn’t zero. We’ve seen huge insurance companies go bankrupt, should be a wake up call. Nor is DB pension risk “zero”.

That's why I said "practically zero" and of course there needs to be good regulation and a safety net set up by the insurance companies/government to compensate for any failures.