Choosing funds for my Aviva pension

alibean121

I've been doing some work recently to track down old work pensions and make sure they're appropriately invested for me. Thanks to a helpful conversation a few weeks ago, I discovered that an old Aviva pension (that has 95% of my pension money in it) actually has very low fees so I should keep hold of it.

I'm now looking properly at the funds available. I've been using a 30/70 UK/World index tracker but from my research, I now have decided that I don't want to be 30% in the UK - the fund is also hedged which I've decided isn't the right thing for me. I'm pretty certain there's no one fund available to me that would be like an all world tracker. I have access to MSCI Developed world ex-UK which is cheap and the closest thing I can see. I'd then want to supplement this with a UK and an emerging markets fund and again have MSCI trackers available. I'm early 30's and am happy that 100% equity is right for me.

I'm just struggling to understand what would be sensible proportions if my aim is to mirror an all share tracker as much as possible - I'm thinking something like 80/10/10 for now?

Markneath

If its the 70/30 blackrock then its 70% UK.

There’s a blackrock overseas tracker and a blackrock uk tracker, using these 2 funds might provide the balance you want.

alibean121

It definitely a 30% UK fund that I'm in right now. It's 30% UK, 10% emerging markets, 60% ROW. I would keep it but, as well as the UK percentage being too high for me, I don't think I want to be hedged.

The Blackrock World ex-UK tracker available to me doesn't say it in the name but is def just developed world. I think I'd want to keep some EM exposure? I guess my question is still, is 10% roughly in line with the market capitalisation and how can I check for myself when it comes to rebalancing next year?

Albermarle

The market capitalisation of the UK is slightly below 5%. An all world tracker would use a similar % for UK .
There is an argument for having more UK than this but there are different opinions. Many traditional pension funds would have ten times this.
I any case it is not that clear cut as many of the biggest companies in the FTSE, do a lot of business outside the UK anyway.