Pension performance

[Deleted User]

While the points about timing and “risk” are completely valid, it is clear that the holdings are inappropriate for OP. 

 He needs to educate himself, and then decide on appropriate asset allocations and investment vehicles.  The book by Edwards would provide a good start. 

kg1448

Re "Is this Royal London?  If not who is the provider?  It should say something like "Governed Portfolio 5".   Please could you tell us the number."

Yes - It appears to be in 'Governed portfolio 4'.

The actual amount in this pension is only about 20k anyway. If I leave it there to go up by 0-2% per year then it will eventually provide virtually no income. I am looking at moving the balance into a SIPP where I can choose how it's invested more easily. The information from the pension provider is virtually impossible to navigate in terms of fund performance, what it's invested in or options to change the investments.

Thanks again!

kg1448

Obviously leaving the workplace scheme active etc etc!

Stargunner

kg1448 said:

Re "Is this Royal London?  If not who is the provider?  It should say something like "Governed Portfolio 5".   Please could you tell us the number."

Yes - It appears to be in 'Governed portfolio 4'.

The actual amount in this pension is only about 20k anyway. If I leave it there to go up by 0-2% per year then it will eventually provide virtually no income. I am looking at moving the balance into a SIPP where I can choose how it's invested more easily. The information from the pension provider is virtually impossible to navigate in terms of fund performance, what it's invested in or options to change the investments.

Thanks again!

Have you not asked google https://www.trustnet.com/factsheets/p/j8hy/royal-london-governed-portfolio-4-pn 

arnoldy

For context if you had been invested solely in UK (not great place for investors over last 5 years) you would be up about 34%.
FTSE 250 Total Return
2020 -4.6%
2019 +28.9%
2018 -13.3%
2017 +17.8%
2016 +6.7%

I suppose some of these pension funds serve their purpose but my experience was very Janet and John Ladybird stuff. Do a tick list > assign a risk level> put you in some mish-mash of bonds, property, shares.

The bonds and property never really do what they are supposed to in recession because the property is illiquid and gated often having crashed in value, and bonds are hit by rising interest rates which usually cause the recession the bonds are supposed to protect against!
The fees were astonishing, and if you did a bit of drilling there were layered charges slipped in.

Linton

kg1448 said:

Re "Is this Royal London?  If not who is the provider?  It should say something like "Governed Portfolio 5".   Please could you tell us the number."

Yes - It appears to be in 'Governed portfolio 4'.

The actual amount in this pension is only about 20k anyway. If I leave it there to go up by 0-2% per year then it will eventually provide virtually no income. I am looking at moving the balance into a SIPP where I can choose how it's invested more easily. The information from the pension provider is virtually impossible to navigate in terms of fund performance, what it's invested in or options to change the investments.

Thanks again!

Over the past 5 years RL Governed Portfolio 4 is showing:
2020/2021: 23.5% (Recovery from Covid Crash)
2019/2020: -9.4% (Covid crash)
2018/2019: 1.8%
2017/2017: 4.2%
2016/2017: 21.1%

Over 5 years:  43.9% total,  7.5%/year average. 
The figures are a bit lower than might be expected given it is about 70% equity but certainly nothing like as bad as you seem to think.  So I dont think the holding is inappropriate - it's an ordinary medium/higher risk multi-asset fund..

dunstonh

The information from the pension provider is virtually impossible to navigate in terms of fund performance, what it's invested in or options to change the investments.

RL publish a monthly governance report which you can download online.      Fund performance is availalbe on the usual sites (trustnet for example).

 If I leave it there to go up by 0-2% per year then it will eventually provide virtually no income.

Why do you think it will only go up by 0-2% a year?    The GP4 is expectation is nothing like that low.

I suppose some of these pension funds serve their purpose but my experience was very Janet and John Ladybird stuff. Do a tick list > assign a risk level> put you in some mish-mash of bonds, property, shares.

The RL GP range is aimed at inexperienced investors who do not understand how to invest.     Whilst it is a portfolio of single sector funds, RL control the weightings, rebalancing and fund selection.  So, it works a bit like a multi-asset fund.

It basically exists to stop those people having the same sort of access as they would on a SIPP and making a right pigs ear of it.   These solutions are rarely the best in terms of return but equally rarely the worst.  They are middle of the road options designed to protect people from themselves.