standard life SL Sustainable Multi Asset (PP) Pension Fund

HillsideRetired

i have just started to look at my DC company scheme with SL 

its is the 
SL Sustainable Multi Asset (PP) Pension Fund 
volatility rating 5 ( not currently in any profiling ) 
cumulative performance is 
1 year 5.31%
3 year 12.29%
5 year 14.33%
10 year 51.74%
company charges are 0.309% (which i understand is good ?)

my objectives for this fund in the short term ( 1 to 5 years) is
withdraw either up to my tax allowance as i may well  have unused allowance 

or 4% of balance PA which currently sits at 220K 

my question
is this performance par for the course for this type of fund  or should , could i be looking at investing elsewhere to get a better cumulative performance ? from my 220K ?

Albermarle

is this performance par for the course for this type of fund  or should , could i be looking at investing elsewhere to get a better cumulative performance ? from my 220K ?

I think most people would be happy with 12% over the last 3 years. Of course if you had been invested in a 100% equity global tracker you would be up 28% . On the other hand if you been in a 100% gilts fund you would have been down 33%.

Of course nothing to stop you looking for an alternative, but no guarantees it would perform any better of course.

dunstonh

is this performance par for the course for this type of fund  or should , could i be looking at investing elsewhere to get a better cumulative performance ? from my 220K ?

ESG funds historically underperform conventional investments.   So, you are putting your views before returns.   

The limited choice of workplace pensions or older personal pensions means you are never going to get access to funds that may do better or be able to utilise a wider range of strategies.  i.e. you have an idea of how you intend to draw from the pension but you don't appear to be structuring the investments to cater for the fact that some money is very short term and some will be long term and everything else in between.     A single accumulation fund isn't going to meet all those different timescales.

Linton

A fund like that will perform almost exactly as determined by what it invests in.  A similar named fund holding a higher % of bonds may well have performed worse over the past couple of years than yours or if it held fewer bonds would have performed better.  In the next 2 years it could be the other way around.  Generally the higher the % of shares the higher the performance in the long term but also the higher the short term volatility (risk level)..

So you should choose the miuxed asset fund best corresponding to your needs in terms of possible return and risk level. Who you get the fund from is of relatively little importantance.

JohnWinder

ESG funds historically underperform conventional investments

Size of the effect? Size of the variation?

silvercue

My work pension is this same pension fund as OP has.  I don't think performance is great and last couple of months I have seen the profit halve.

I don't think sustainable is right for me, so I have requested someone to discuss options with at SL.    

HillsideRetired

silvercue said:

My work pension is this same pension fund as OP has.  I don't think performance is great and last couple of months I have seen the profit halve.

I don't think sustainable is right for me, so I have requested someone to discuss options with at SL.    

let me know how you get on 

Albermarle

silvercue said:

My work pension is this same pension fund as OP has.  I don't think performance is great and last couple of months I have seen the profit halve.

I don't think sustainable is right for me, so I have requested someone to discuss options with at SL.    

I think in any case SL are removing the word sustainable from a lot of their funds.
Investment companies are under pressure from the FCA to make sure so called sustainable/ESG/ environmentally friends are actually that and not just greenwashing.

Perhaps more importantly whoever calls you from SL, will only discuss general options, and they will not offer any personal advice or recommendations.