Pension performance

felix54

Just trying a sense check on performance of true potential aggressive pension portfolio at the moment. Just wondered how the sits in terms of performance for the last five years.

Rattusnorvegicus

Well QQQ is 2.5x the value 5 years ago (250%). So probably worth using that as a benchmark to compare your portfolios to... I hold EQQQ, its my ETF of choice.

bolwin1

A low cost global tracker with 100% equities would have ended up around 12% higher over that 5 year period. It would have gained around 70% compared to the 58% gain on the one you mentioned. 

Bostonerimus1

That looks like a cumulative return of around 40% for the Aggressive Portfolio. Without knowing the asset allocation it's impossible to comment on that performance. But given the pattern of returns and the relatively low losses in 2021-22 it seems like there is some active portfolio management going on. As a comparison a global equity index fund that you simply left alone is up around 70% over the last 5 years, but that comparison might be "apples to oranges".

Notepad_Phil

bolwin1 said:

A low cost global tracker with 100% equities would have ended up around 12% higher over that 5 year period. 

Which tracker are you thinking of? The HSBC FTSE All World Index Acc  is 70% higher over the last 5 years, even Vanguard Lifestrategy100% Equity with its bias to the UK is over 50%.

bolwin1

Notepad_Phil said:

bolwin1 said:

A low cost global tracker with 100% equities would have ended up around 12% higher over that 5 year period. 

Which tracker are you thinking of? The HSBC FTSE All World Index Acc  is 70% higher over the last 5 years, even Vanguard Lifestrategy100% Equity with its bias to the UK is over 50%.

I was trying to say it's 12% higher than the fund posted by the OP, appreciate it might not read like that. For an "aggressive portfolio", I don't think the fund posted by OP has done particularly well over the past 5 years. Have just updated my initial post to clarify. 

felix54

Thanks all, this is the main pension. Sounds like it may do better elsewhere such as the HSBC FTSE All World Index Acc . Will have a think..

Bostonerimus1

felix54 said:

Thanks all, this is the main pension. Sounds like it may do better elsewhere such as the HSBC FTSE All World Index Acc . Will have a think..

You might do better, but you might also be taking on more risk. You must understand the asset allocation of your pension and how it is managed to make an informed choice.

Cus

Rattusnorvegicus said:

Well QQQ is 2.5x the value 5 years ago (250%). So probably worth using that as a benchmark to compare your portfolios to... I hold EQQQ, its my ETF of choice.

Isn't 2.5x the value equal to 150% growth?

dunstonh

Remember that in this cycle, US equities has been the place to be.    In the previous cycle, US equity underperformed the rest.       

Anything high in US equities in this cycle has done really well.   However, we don't know what is going to happen in the next cycle and you shouldn't look at short term 5 year performance as a guide to the long term.     For example, from 1st Jan 2000 to 31 Dec 2009, that 10 year period saw US equities lower than at start.   

Albermarle

felix54 said:

Thanks all, this is the main pension. Sounds like it may do better elsewhere such as the HSBC FTSE All World Index Acc . Will have a think..

Normally financial advisors recommend investments that suit your risk profile, which are not necessarily the ones that will likely grow the fastest.
Although quite a lot of forum contributors often mention 100% equity index funds, they are potentially too volatile for your average investor. A drop of maybe 30% in a couple of weeks can be quite unnerving.