Choosing a good pension fund (Standard Life)?

bp5678

Hi I've recently got a new job and my employer uses Standard Life as the pension provider. I'm trying to choose a good fund. I'm 26 so high risk/volatile funds are good at my age. 

I've identified the following funds:

SL HSBC Islamic Global Equity Index Pension Fund (PDF)(opens in a new window) - Total fund charge 0.955%. Risk Level 6.

SL Vanguard Emerging Markets Stock Index Pension (PDF)(opens in a new window) - Total fund charge 1.217%. Risk Level 7.

SL Vanguard ESG Developed World All Cap Eq Idx Pn (PDF)(opens in a new window) - Total fund charge 1.017%. Risk Level 6.

SL Vanguard FTSE Developed World ex UK Pension Fd (PDF)(opens in a new window) - Total fund charge 1.017%. Risk Level 6.

The fees seem pretty high and I'm having a hard time choosing one of these funds. Ideally passive, global, well diversified equities.

Leaning most towards the first or last option.
Which would you recommend?

Bimbly

You do not have to plump for one fund. You can have a mix of funds. So, for example: world ex-UK, UK all share & emerging markets, which are the three I use in my DC pot. But those charges look very high indeed. Is there not a small list of funds offered by the scheme which have lower charges?

What about the default options? My works pension has an "adventurous" option which, for a person of your age, would be all equities (albeit 30% weighted to the UK) with a 0.23% fee. Not necessarily a bad option for starters.

bp5678

Bimbly said:

You do not have to plump for one fund. You can have a mix of funds. So, for example: world ex-UK, UK all share & emerging markets, which are the three I use in my DC pot. But those charges look very high indeed. Is there not a small list of funds offered by the scheme which have lower charges?

What about the default options? My works pension has an "adventurous" option which, for a person of your age, would be all equities (albeit 30% weighted to the UK) with a 0.23% fee. Not necessarily a bad option for starters.

Unfortunately all the available funds have high fees. 

The default option I'm currently in is Standard Life Active Plus III Pension Fund. Total fund charge is 0.781%. Risk level is 4. Cumulative performance for 1 yr, 3 yr & 5 yrs respectfully are 3.73%, 11.62% and 31.36%.

Greylocks

I have a pension with Standard Life.
I put mine in Baillie Gifford Managed which seems to have a bit in everything but without trying to shoot the lights out. Good reports from Trustnet and MorningStar.
Of course, it depends on your risk tolerance.

bp5678

Greylocks said:

I have a pension with Standard Life.
I put mine in Baillie Gifford Managed which seems to have a bit in everything but without trying to shoot the lights out. Good reports from Trustnet and MorningStar.
Of course, it depends on your risk tolerance.

Thanks! As someone who is young, I would rather go high risk.

dunstonh

Unfortunately all the available funds have high fees. 

Are you looking at the actual charge or the fund factsheet charge (which nowadays is not usually the charge you are on but a default for older pensions).

Albermarle

Regarding the charges , you should check with SL or your employer , whether a discount has been agreed . If it has it is usually not obvious from the paperwork /website.
The default option I'm currently in is Standard Life Active Plus III Pension Fund.
As you have realised this is too low risk for someone your age . Plus these SL default funds have not fared very well recently even compared to other default funds . Partly down to a high UK weighting but not just because of that,