Global tracker - Global Multi Asset

20122013

I am in the process of switching all my actively manged funds to 1 x HSBC FTSE All World Index left to invest for 10 (- 15 years). It is high risk (ie can lose it all and I have to take the risk) I will be pleased with 5% return after inflation (still will not meet my target and will think of something else).   I have also read that multi asset funds may be more suitable for those who are new to investing (ie me). As I have to redo my 5 of 7 SW Pension funds, would it be a good balance to switch to a multi asset fund, https://monevator.com/ or a 'bond and equity' or other options?

This ratio was not planned :

75% Global tracker 75% and one 25% Global Multi Asset for my small size pension

dunstonh

 It is high risk (ie can lose it all and I have to take the risk) 

The only way you can lose it all is Armageddon.    The more likely loss are the generational 40-50% loss periods or the 1 in 100 year type events where 80% loss is possible.

 I have also read that multi asset funds may be more suitable for those who are new to investing (ie me). 

Expereinced investors who have been through multiple loss periods tend have better behavior when it comes to investing.  i.e. they shrug off negative periods as "here we go again". In contrast, newer investors can make bad behavioural decisions as they lack knowledge and understanding.

Someone at risk of bad decision making is usually better with a lower stockmarket ratio.

SVaz

My volatility managed Global Dynamic multi asset fund has lost less over the last few weeks than my FTSE AWI fund,  which is entirely to be expected, as is it’s lesser performance over the last few years. 

My 80/20 LS fund too,  they’ve acted as they should. 
Whether any of them will beat real returns of 5% over the next 10-15 years is anyone’s guess.  I’m cautiously optimistic though. 

20122013

SVaz said:

My volatility managed Global Dynamic multi asset fund has lost less over the last few weeks than my FTSE AWI fund,  which is entirely to be expected, as is it’s lesser performance over the last few years. 

My 80/20 LS fund too,  they’ve acted as they should. 
Whether any of them will beat real returns of 5% over the next 10-15 years is anyone’s guess.  I’m cautiously optimistic though. 

What you mind sharing when you  had started these funds? and is your Global Dynamic multi asset fund with Vanguard?

SVaz

HSBC Global strategy dynamic,    Held for around 3 years.
VLS 80 for the longest, 5+ years,  first fund I bought when I amalgamated my old work pensions. 
HSBC FTSE AWI ,  around 3 years. 

20122013

@ SVaz

Do you hold 3 funds in your pension?  your funds have done half my timeline - great.   I was thinking 1 for S&S ISA and I - 2 funds  for pension and all low cost tracker funds.. thinking whether that will be balanced or am I missing something. I am trying to move away from relying on saving rates.

SVaz

40% of my main Sipp is in a short term money market fund as I will be starting to take it in 2027/28 and only drawing it until 2032 when I get my State pension.

Those 3 funds make up the rest of my pension and will stay invested, maybe just drawing off the dividends in a good year (after I’m 67). 

HSBC GS dynamic is a stand alone fund in another Sipp, I may sell off some of it in a few years just to get the tax free cash if needed. 

My only advice is,  work out what you will need in terms of income and when,  then work back from there,  forming a strategy.
A Gilt ladder may or may not be another idea,  I don’t know the rates beyond 2032 though.

Hoenir

 I will be pleased with 5% return after inflation (still will not meet my target and will think of something else). 

Depending in when you first enter the "markets that's a demanding objective. Besides account management fees and investment management fees. There's taxation to factored in. Such as a tax on share buybacks as was imposed in the USA in 2024. Or dividend tax may not be full reclaimable. All chip away from the gross return achieved.  A 5% increase in global GDP in any one year is regarded as good. In the main nearer to a 3% average.

Companies can only outperform by suppressing wages and costs (offshoring), receiving the benefit of low interest rates / easy to raise equity capital or being clever with their corporate taxation status (i.e. locate IP in tax friendly jurisdications).  In this regard an era has past. A new challenging era/cycle is emerging. 

20122013

SVaz said:

40% of my main Sipp is in a short term money market fund as I will be starting to take it in 2027/28 and only drawing it until 2032 when I get my State pension.

Those 3 funds make up the rest of my pension and will stay invested, maybe just drawing off the dividends in a good year (after I’m 67). 

HSBC GS dynamic is a stand alone fund in another Sipp, I may sell off some of it in a few years just to get the tax free cash if needed. 

My only advice is,  work out what you will need in terms of income and when,  then work back from there,  forming a strategy.
A Gilt ladder may or may not be another idea,  I don’t know the rates beyond 2032 though.

This is very useful. As  I am not too far behind, I am just starting over (with not much experience) and appreciate your information.  I know the total goal and as you have said.working backwards, and how to do is the challenging part as not much time to trial and error and lots to understand. Best wishes.