Prudential AVCs

SwiftS

Does anyone know about or have views
on the teachers’ pension Prudential AVCs? I am currently invested (about a 50/50 split) in the cash accumulation fund and dynamic growth Three. I’ve had a look at the alternative funds and they are categorised as high, medium, low to medium risk. I want to try a third fund which is either low to medium or medium risk. However the descriptions of the funds are really vague. Eg there are broad parameters as to the possible percentage of equities and the descriptions are even vaguer regarding other types of investment.

dunstonh

 However the descriptions of the funds are really vague. Eg there are broad parameters as to the possible percentage of equities and the descriptions are even vaguer regarding other types of investment.

If the funds are multi-asset funds then the underlying weightings allocated to each country/region/asset class will be variable.  So, descriptions will be broad.

(about a 50/50 split) in the cash accumulation fund and dynamic growth Three.

Why cash?  Are you expecting to draw 50% of the fund out in the next 1-3 years?

SwiftS

dunstonh said:

 However the descriptions of the funds are really vague. Eg there are broad parameters as to the possible percentage of equities and the descriptions are even vaguer regarding other types of investment.

If the funds are multi-asset funds then the underlying weightings allocated to each country/region/asset class will be variable.  So, descriptions will be broad.

(about a 50/50 split) in the cash accumulation fund and dynamic growth Three.

Why cash?  Are you expecting to draw 50% of the fund out in the next 1-3 years?

Sorry my original post was too vague. Half my contributions went to the with profits cash accumulation fund (range of investments including equities). I stopped investing in this in March 2020 and starting investing in dynamic growth III. However DG III has a significant investment in bonds. I had an earlier post about whether to continue to invest in bonds and the responses suggested this wouldn’t be a good idea. I was going to leave this fund as it is as I’ve already made a loss and just hope
it grows again. I’m therefore looking for a third fund. I’m 47. Hope to leave at 60 (very small final salary pension to be topped up by AVCs) before state pension and career average db pension begin at 68

Albermarle

 However DG III has a significant investment in bonds.

What does significant investment in bonds mean in % terms ?

An alternative medium risk fund, might have an even higher % ( typically around 30 to 40%)

Normally  with profits investment is already low/medium risk.

Not sure what age you are, but if you are some years from taking the AVC, it might be better to up the risk/% equity a bit.

SwiftS

Albermarle said:

 However DG III has a significant investment in bonds.

What does significant investment in bonds mean in % terms ?

An alternative medium risk fund, might have an even higher % ( typically around 30 to 40%)

Normally  with profits investment is already low/medium risk.

Not sure what age you are, but if you are some years from taking the AVC, it might be better to up the risk/% equity a bit.

Dynamic growth III has International bonds 33% and uk corporate bonds 10%. I think I can only see this information because I’m invested in it (there’s a fact sheet attached to my two fund summaries). The information at the point you are choosing where to invest seems much more vague (or I might be missing something as the Prudential information can be hard to navigate). I’m 47 and need to access this fund 60-68. From 68 I’m in a better position. Thanks