Comments on investments welcomed

GBY

I’d be very grateful for any feedback on my current allocation of my employee pension investments provided by Aviva. I was in Blackrock Consensus for a number of years but recently set up the following. I’m now questioning whether it’s overly complicated and I’d be better off with just the Baillie Gifford Fund or switching to Liontrust SF Managed as the latter’s fees are lower. I’d even consider a world equity, asian and bond tracker instead though the options available are limited. I’ve allocated a percentage to invest in riskier funds though the amounts may be too low to be worth it.


I’m 46, due to retire at 67. I have a finaly salary pension from a previous employer that I will receive from 60, £6500pa in today’s money.


Pension fund £90,000:


I now contribute 15%, work 10%. Percentages below are current allocation and future montly contributions respectively.


Baillie Gifford Managed 75% 70% (considering switch to Liontrust SF Managed, lower fees)
First State Global Infrastructure 8% 20% (considering switch to L&G G Infrastructure Index, lower fees)
GLG Japan Core Alpha 5% 5% currently low value, scope to grow?
Invesco Asian 4% 4% (switching to Blackrock Asia Pacific tracker, lower fees similar structure)
Invesco Latin America 3.5% 2% Not sure about this one, will sell when/if it grows
Aviva Pensions Property 2.5% 2% Not a great fund but one of only two available
Investec Global Gold 2.4% 2% Not sure about this one, will sell when/if it recovers



S&S ISA Hargreaves Lansdown £45000:



To supplement my income in later life and I’ve allowed some high risk investments, aware their platform fee is high.


£100/month

£50 > Lindsell

£25 > Jupiter UK

£25 > Greater China


Lindsell Train Global Equity 22%

Jupiter UK Smaller Companies 19%

First State Greater China Growth 7%

L&G Global Real Estate Dividend Index 8%

L&G Global Healthcare & Pharmaceuticals 4.5%

Pictet India Index 5%


Netflix shares 2.5%

Versarian shares 19%
Iqiyi shares, (outside ISA) 12%

Aidanmc

Is ocf for Baillie Gifford Managed B not 0.43% and the Liontrust SF Managed 0.92%?

GBY

My employer has negotiated lower fees with the provider. In this case 0.65% for BG and 0.40% for the Liontrust.

AnotherJoe

Re the pension I wouldn't bother with anything under 5% and dont see the point of hanging on to something "until it recovers". Either you think its a good bet for the future or dump it and buy something else you think will grow.
I rationalised all my investments a few years back to get rid of the 1,2,3,4 percent stuff that wasnt doing anything, even if it was growing. If i thought it was good buy more, if a dog, sell.

5% or nothing.

masonic

Latin America has done so badly in recent years one might think it is due to storm ahead - but perhaps there are political and structural reasons why it won't.

I'm sceptical of holding gold and commercial property in a pension 20 years before retirement.

You should also consider that the manager of your chosen global fund is making asset allocation decisions, so your additional exposure to region-specific funds should be considered an overweight allocation - with the possible exception of emerging markets if the global fund does not include them. So I think simplification ought to be possible.

Albermarle

I’d even consider a world equity, asian and bond tracker instead though the options available are limited.

Normally a pension provider like Aviva is not the best place for investing in simple trackers , due to the cost .

londoninvestor

Albermarle wrote: »

Normally a pension provider like Aviva is not the best place for investing in simple trackers , due to the cost .

Fair comment about most providers, though L&G do have some good low-cost trackers available in pensions.

GBY

The trackers I'd consider are 0.0% plus the 0.35% Aviva charge, so the Liontrust Managed, for example, is only 0.05% more.

masonic

GBY wrote: »

The trackers I'd consider are 0.0% plus the 0.35% Aviva charge, so the Liontrust Managed, for example, is only 0.05% more.

That's a very low charge. My workplace pension charges a 0.75% annual fee if invested in their default fund (multi-asset tracker) or 1% plus additional charges if invested in other funds.

bostonerimus

This strikes me as the classic grab bag portfolio. People are presented with fancy funds in their pensions and they think there is some magical combination that they can come up with. It really is all a bit self delusional and the financial industry makes nice profits by reinforcing that delusion.

Investing isn’t complicated. I’ve had most of my money in the same 3 index trackers for 20 years and I’ll hopefully stick with them for at least another 30. Keeping things simple makes managing your investments easier which is useful in down turns.

Moe_The_Bartender

You should also consider that the manager of your chosen global fund is making asset allocation decisions, so your additional exposure to region-specific funds should be considered an overweight allocation - with the possible exception of emerging markets if the global fund does not include them.

I have a real problem with Emerging Markets - corporate governance and the political risk to begin with.

My ex-IFA recommended that I put 28% of my pension pot into EM based upon my Attitude to Risk. The funds he recommended were 'interesting' and included Russian and South African banks. Why would I put my money into such an investment when I wouldn't even invest in a UK bank?

If I want emerging markets in my portfolio, I can get that through the likes of Unilever, Diageo and Heineken.