Frequency of changing invested funds

The_Boss

Hi all,

I have two workplace pensions with Aviva. One is a leavers pension from my old company and the other from my current company with ongoing contributions.

I'm not keen on the range of possible investments with Aviva so have arranged a transfer of both accounts to an AJ Bell SIPP (which I also use for my stocks and shares ISA). Aviva have confirmed that the active account will stay open for my future pension contributions, which I will invest in 2 of their funds. However, I'm wanting to move over the fund value to AJ Bell maybe once or twice a year to add to my investmenrs there, but the advice always given is that investments should be made for 5 years minimum. There are no fees for transfering from Aviva or to AJ Bell. Are there any issues with me transferring over to the new SIPP twice a year or would it be better just to leave it investing with Aviva given it won't have had much time to (hopefully!) increase in value?

Albermarle

The usual minimum 5 year advice really means you should stay in investments for that minimum period, and not think about cashing out earlier.
If you are staying invested, but just changing the fund, then it does not really apply in the same way. Especially if the funds are not wildly different.

Mark_d

I have consolidated two Aviva pensions in to one.  Whilst the choice of funds isn't perfect, moving elsewhere I think you'll likely face higher charges and won't necessarily be better off.  I review my choice of funds with Aviva every few years

gm0

You will generally have to cash out fund unit holdings i.e. sell/settle to make a partial transfer.  Insured funds in occupational trusts are not as a rule available retail  

And so reregistration moving in specie isn't usually possible.  

So you will have 1-2 weeks for a "partial" transfer out of the market which can win or lose - each time you do it.  Largely unavoidable - unless you have an acceptable fund available both ends that you can use for part of your portfolio.

You can pick a time of year which is "usually" lower trade volume volatility - when Mr Market is on vacation.  But there is no avoiding the possibility entirely that you instruct.  There is a flash crash. Your action happens. And before you reinvest the market moves back up against you.  Of course - it can just as easily go the other way.

It is best not to worry about this.  

And just do smaller partial transfers every year or two.  And concentrate on your investment plans for the main fund.

Another way to look at it of course is as a "total" portfolio.  The old pension doesn't have to offer everything. If it offers a well priced something. It can be built into your overall plans.  It is after all the total portfolio which counts.  It is an unusual pension offer that has "no" basic but decent funds offered.  There is usually something you can use for some cheapish global equities holdings even if active and bond offers are poor.

Marcon

The_Boss said:

 the advice always given is that investments should be made for 5 years minimum. 

Depends on the type of investment - and the point at which you decide to sell.

dunstonh

but the advice always given is that investments should be made for 5 years minimum. 

Lets say you are in a global equity fund with Aviva and you transfer to a Global Equity fund on AJB.   You are still invested in the same area and the same timescale.   It's only the administrator that is changing.

BlackKnightMonty

I switch SIPP funds in AVIVA all the time. There is no charge to switch funds.

Trump goes all tariffy - into gold & silver.

Trump always chickens out (Taco) - into the s&p500.

I’ve grown my SIPP 40% this year on this play.

not investment advice - your money your risk. 

ali_bear

Aviva should have a huge range of investments available? 

dunstonh

ali_bear said:

Aviva should have a huge range of investments available? 

Depends on the product held and the version.
For example, the Aviva SIPP is whole of market and has its internal fund range (so, OEICs/UTs, ETFs, shares, ITs and insured range).     However, some of its older products hark back to the days when there was just the With Profits fund available on it.    And then those in between which may have around 10-300 funds available.

Trump always chickens out (Taco) - into the s&p500.
I’ve grown my SIPP 40% this year on this play.

Shame you didn't go global instead of S&P500.   US equity has been poor for UK investors YTD.  

Leigh-Anne_60

ali_bear said:

Aviva should have a huge range of investments available? 

I have two pensions with Aviva, older one has a huge range.  The other, which is with my current employer, is very limited, maybe 5 options.  Assume a directive via my employer, not sure? 

BlackKnightMonty

dunstonh said:

ali_bear said:

Aviva should have a huge range of investments available? 

Depends on the product held and the version.
For example, the Aviva SIPP is whole of market and has its internal fund range (so, OEICs/UTs, ETFs, shares, ITs and insured range).     However, some of its older products hark back to the days when there was just the With Profits fund available on it.    And then those in between which may have around 10-300 funds available.

Trump always chickens out (Taco) - into the s&p500.
I’ve grown my SIPP 40% this year on this play.

Shame you didn't go global instead of S&P500.   US equity has been poor for UK investors YTD.  

It’s actually a global tech fund; heavy on mag7.