Aviva Pensions Asset funds

C_T

Hi, I have an Aviva private pension plan, and am a complete novice to fund management etc.
One of my funds is a Long Gilt S2 fund which is performing very badly.  I am looking to transfer this fund to Global Equity S2.
As I say, I have no idea really if this is a good move but think that anything must be better than the Long Gilt performance.  Also, I can move funds again if it's not working for me.
Also, I am 62 and have split my pension into risk 2 and 5, is this good practice?
Any advice would be so much appreciated.
Thank you :-)

dunstonh

One of my funds is a Long Gilt S2 fund which is performing very badly. 

It shouldn't be now.  It would have been for most of this year until a few weeks ago.

I am looking to transfer this fund to Global Equity S2.

That is a big jump in risk.   The Gilt fund has low volatility 95% of the time.    It as suffered a generational event this year (indeed two of them) but they are now priced in and going forward, the fund is looking more attractive.

The Global Equity fund can fall by a greater amount to the Gilt fund and more frequently.  It has better long term potential upside but it has worse short term downsides.

As I say, I have no idea really if this is a good move but think that anything must be better than the Long Gilt performance. 

The opposite in reality.   Gilts fell back so much that they haven't been so cheap as this in 30 years.

Also, I am 62 and have split my pension into risk 2 and 5, is this good practice?

Its the overall measure that matters.  Not each part. e.g. you could have 10% in risk 2 and 90% in risk 5 which would mean you would be pretty much 4.5-5.   Whereas the other way around would have you risk 2.5-3.    

Albermarle

C_T said:

Hi, I have an Aviva private pension plan, and am a complete novice to fund management etc.
One of my funds is a Long Gilt S2 fund which is performing very badly.  I am looking to transfer this fund to Global Equity S2.
As I say, I have no idea really if this is a good move but think that anything must be better than the Long Gilt performance.  Also, I can move funds again if it's not working for me.
Also, I am 62 and have split my pension into risk 2 and 5, is this good practice?
Any advice would be so much appreciated.
Thank you :-)

As said the time to move out of Gilts was over a year ago. They have probably dropped as far as they are going to.

[Deleted User]

Just a note that we have no idea what will happen to gilts next.  If inflation stays higher than expected for longer then gilts will be decimated, particularly in real terms.  It must be understood that gilts are not a “low risk asset” in inflationary environment unless they are linkers or you have very specific cash requirements over a very specific timeframe which is aligned with gilt duration.

Gilts may go up or crash. Either is a plausible outcome. The idea that “market fell ytd, it will go up next is a psychological problem many investors have.  They think in patterns.  Market does not follow patterns. Its a random walk, including for gilts. 

JohnWinder

C_T said:

…. am a complete novice to fund management etc.
Any advice would be so much appreciated.

Read Tim Hale’s book Smarter Investing.