Long term pension investment funds - Aegon workplace pension

DanJ90

Appreciate the advice!

At this point, is it worth me adding a satellite fund into the mix (I.e Fundsmith or a Baillie Gifford Alpha growth) with say 10/15% of my monthly contributions?

So let’s say:

75%: FTSE Dev World ex UK
15%: UK fund of some sort
10%: Satellite fund.

Obviously my pot isn’t particularly large at the moment so not sure if I’d benefit from something like this or not yet.

Thanks.

hyperhypo

I'd echo what AnotherJoe mentioned about healthcare and renewables , and my 30 year self might add Cyber too.  A look at Investment Trusts / ETFs too perhaps for these areas. I'm presently considering using some of these in my soon to be retirement drawdown setup as satellite funds , the likes of WWH and ISPY for example are on my homework desk at present.

AnotherJoe

DanJ90 said:

Appreciate the advice!

At this point, is it worth me adding a satellite fund into the mix (I.e Fundsmith or a Baillie Gifford Alpha growth) with say 10/15% of my monthly contributions?

So let’s say:

75%: FTSE Dev World ex UK
15%: UK fund of some sort
10%: Satellite fund.

Obviously my pot isn’t particularly large at the moment so not sure if I’d benefit from something like this or not yet.

Thanks.

Rather than mess with separate ex UK and UK funds why not just a Single global one ?
Also note that many U.K. funds aren't really uk as such they are just a random collection of global companies that happen to have their HQ here in the U.K.  You may think you are investing in the U.K. but possibly to repeat myself, if you buy BP or Unilever or Anglo Mining etc etc you aren't really. 

If you really want to invest in the UK, well that's actually quite difficult. Even if you picked a small or micro companies UK fund you'd still end up buying companies who likely did much global business, that's just the nature of business these days. 

DanJ90

There isn't a global one available unfortunately - If there was a global all-cap like the Vanguard or HSBC FTSE all world index offering (or something similar to the VLS lifestrategy 100/HSBC GS Adventurous funds) then I probably would have been more than happy with that, hence why I am trying to replicate something similar. 

There are multi-asset funds available but are fairly low in equities for my current position (usually around 60-70%) but are UK heavy in that respect, hence why I am looking elsewhere. The other 100% equity trackers that are better diversified which I can see do not contain the UK at all.

Hyperhypo - I don't have access to anything like that unfortunately within my Workplace pension.

garmeg

DanJ90 said:

There isn't a global one available unfortunately - If there was a global all-cap like the Vanguard or HSBC FTSE all world index offering (or something similar to the VLS lifestrategy 100/HSBC GS Adventurous funds) then I probably would have been more than happy with that, hence why I am trying to replicate something similar. 

There are multi-asset funds available but are fairly low in equities for my current position (usually around 60-70%) but are UK heavy in that respect, hence why I am looking elsewhere. The other 100% equity trackers that are better diversified which I can see do not contain the UK at all.

Hyperhypo - I don't have access to anything like that unfortunately within my Workplace pension.

Doesnt the ETF VEVE cover global including a modest UK allocation?

DanJ90

Hi Garmeg,
You are correct and I am investing in something similar in my S&S ISA, however I am referring to my workplace pension (Aegon) at this point which doesn't have access to Vanguard etc. I am trying to replicate something like this that I can setup and forget for the next X amount of years if that makes sense.
Thanks.

garmeg

DanJ90 said:

Hi Garmeg,
You are correct and I am investing in something similar in my S&S ISA, however I am referring to my workplace pension (Aegon) at this point which doesn't have access to Vanguard etc. I am trying to replicate something like this that I can setup and forget for the next X amount of years if that makes sense.
Thanks.

Aviva allows partial transfers from woekplace schemes, maybe Aegon does the same? 

It may well be a requirement of auto enrollment - @dunstonh is this correct?

DanJ90

@garmeg - Aegon do allow partial transfers out yes.

I did think of opening a SIPP with say Vanguard and doing it like this, but I'm not confident I would remember each month to put the transfer request through! Certainly something to think revisit I think as I would be saving myself 0.30 per annum simply by switching to a Vanguard SIPP (0.15) from my Aegon pension (which I have been told we pay 0.45 per annum).

hyperhypo

Dan, i'm at the other end of the work journey to you and my last work scheme was an Aegon ARC SIPP...which as you say doesn't permit access to I.T.'s and ETFs (at least as a user purchase). This was one of the reasons why i'm now in process of transferring the lot out to Fidelity (and more usable interface), and i'm happy to accept an increase on the discounted Aegon  platform fee (at 0.23%) to Fidelity's 0.35%.

I only came to find out that i couldn't buy Investment Trusts or ETFs when i tried to do so ...i couldn't believe these are regarded as esoteric to be regarded as adviser-only options.

short_bread

If you have 30 years to go then a cheap, broad global equity tracker should be fine. Personally I would upweight the UK a fair bit because of how much weight the US takes up in the global index and how overvalued the US is right now, but over the very long-term i.e. 30 years you're unlikely to see a big difference based on historical returns.