Funds opinion please

masonic

It might be worth using the scheme as a temporary home for your pension savings and partially transfer out to a SIPP every few years. That's what I did when I was in a scheme with a poor selection of funds. Then just pick the lowest cost equity funds knowing it will be for an ever decreasing proportion of your total pension funds.

Bostonerimus1

I'd probably have 10 to 20% in the UK equity and the rest in the Global equity (ex UK) fund

aroominyork

It is easy to see Islamic funds as a slightly different flavour of ESG without realising they are hugely slanted to the big tech firms. In the global ex-UK fund which the OP posted, the Mag7 are 19.3% of the companies; in the Islamic fund they are a whopping 38.8%.

aroominyork

masonic said:

It might be worth using the scheme as a temporary home for your pension savings and partially transfer out to a SIPP every few years. That's what I did when I was in a scheme with a poor selection of funds. Then just pick the lowest cost equity funds knowing it will be for an ever decreasing proportion of your total pension funds.

Is there a right to transfer funds from any DC workplace pension to a SIPP while still in the job, without it affecting the employer's future contributions?

Ivkoto

masonic said:

It might be worth using the scheme as a temporary home for your pension savings and partially transfer out to a SIPP every few years. That's what I did when I was in a scheme with a poor selection of funds. Then just pick the lowest cost equity funds knowing it will be for an ever decreasing proportion of your total pension funds.

aroominyork said:

masonic said:

It might be worth using the scheme as a temporary home for your pension savings and partially transfer out to a SIPP every few years. That's what I did when I was in a scheme with a poor selection of funds. Then just pick the lowest cost equity funds knowing it will be for an ever decreasing proportion of your total pension funds.

Is there a right to transfer funds from any DC workplace pension to a SIPP while still in the job, without it affecting the employer's future contributions?

Well this would be a perfect option, but I'll try to find out tomorrow if it's possible.

masonic

aroominyork said:

masonic said:

It might be worth using the scheme as a temporary home for your pension savings and partially transfer out to a SIPP every few years. That's what I did when I was in a scheme with a poor selection of funds. Then just pick the lowest cost equity funds knowing it will be for an ever decreasing proportion of your total pension funds.

Is there a right to transfer funds from any DC workplace pension to a SIPP while still in the job, without it affecting the employer's future contributions?

There is not a right, but it is often possible.

GazzaBloom

As a bit of a counter view, personally, I like the HSBC Islamic Global Equity Index fund and hold 40% of my pension in it. I pay 0.3% fees on it.

It's a global fund, containing only large well established and successful companies and performs well when global equities do well. As long as you are aware of its Mag 7 and Tech concentration, I don't really see what's not to like.

I don't fear holding the Mag 7 and Tech like many seem to, I want to hold a slice of the world's most successful companies especially Tech companies. It's an index fund so as stars fade they will slip down the index to be replaced with new rising stars.

Just as long as you understand that being 100% equities then the value of the fund can drop quite sharply in a global crisis, but then so do all equities, there's rarely a safe place to hide in such times unless you hold a chunk of cash or bonds.

InvesterJones

Since there's presumably no penalty to holding multiple funds I'd just use those to recreate a world index - have the majority in the world ex-UK, add a dash of UK and emerging markets. No need to rebalance if set them to current market proportions.

aroominyork

Ivkoto said:

masonic said:

It might be worth using the scheme as a temporary home for your pension savings and partially transfer out to a SIPP every few years. That's what I did when I was in a scheme with a poor selection of funds. Then just pick the lowest cost equity funds knowing it will be for an ever decreasing proportion of your total pension funds.

aroominyork said:

masonic said:

It might be worth using the scheme as a temporary home for your pension savings and partially transfer out to a SIPP every few years. That's what I did when I was in a scheme with a poor selection of funds. Then just pick the lowest cost equity funds knowing it will be for an ever decreasing proportion of your total pension funds.

Is there a right to transfer funds from any DC workplace pension to a SIPP while still in the job, without it affecting the employer's future contributions?

Well this would be a perfect option, but I'll try to find out tomorrow if it's possible.

I just spoke with Nest on webchat (a human, not a robot - I think...). They do not allow partial transfers out - only full transfers following which they will close your account.

Ivkoto

I just spoke with Fidelity and unfortunately the scheme doesn't allow partial transfers. So I am stuck with these options.