Pension Fund Choices

Markneath

I currently have a pension with aviva, my current fund choices are,

Aviva blackrock overseas consensus equity tracker 70%

Aviva blackrock UK equity tracker 30%.

Does anyone have any thoughts on these choices and the percentages?


Thanks

Marcon

Markneath said:

I currently have a pension with aviva, my current fund choices are,

Aviva blackrock overseas consensus equity tracker 70%

Aviva blackrock UK equity tracker 30%.

Does anyone have any thoughts on these choices and the percentages?


Thanks

How old are you? What made you pick these funds in the first place? Have they performed as you expected? What's your risk appetite and do the funds fit with it? Have you read the fund factsheets to see what the charges are? Are other funds on offer which would better fit your risk appetite and have a better cost structure?

Sorry about all the questions, but there is no point on people 'having thoughts' without a clue about your personal situation.

Markneath

46 years old and divorced.

I think it’s performed reasonably well although not amazing, the charges are 0.5%.

I was previously in the invesco global equity fund which had an additional charge I think an extra 0.25% this was doing well until about 4/5 years ago when it seemed to do nothing for a few years so I moved it to my current choice. 

My reason for the percentage split was that I basically reduced the UK allocation and increased the overseas allocation when going from the invesco to this as I thought the invesco pension might have been doing badly as it was very Ftse100 focused.

Im fairly good with risk not much of a bonds fan.

It’s performed very well the last year or two but I think most things have really, going forward I think the next 2/3 years will be a much tougher environment and the difference between a good and bad choice of funds might be critical.

Thrugelmir

The choice of underlying investments is likely to be key in the short term. As global markets at the macro level seem to follow each others movements closely. Bear markets are where active management comes into it's own. 

EdSwippet

Thrugelmir said:

... Bear markets are where active management comes into it's own. 

Keep pushing that canard if you like, but according to multiple papers over a considerable timeframe, it's statistically wrong. One example paper:

Do Active Equity Managers Outperform Passive Funds in a Bear Market? - netwealth

Do active funds really outperform passive funds in a downturn? The figures on average say no – and good luck sniffing out one that does.

Albermarle

Keep pushing that canard if you like, but according to multiple papers over a considerable timeframe, it's statistically wrong. One example paper:

I am not on one side or the other in the active vs passive debate . However my investments in Wealth Preservation Trusts/Funds, which are effectively managed approx 40% equity multi asset funds, have survived the issues this year much better than Vanguard Life strategy 40 and their cousins.