Pension Portfolio

nelly77_2

Hi, Can anyone suggest a typical aggresive pension portfolio.

eg, 40% UK Equities
30% Euro Equities
15% US Equities
10% China Equities
5% Japan Equities

Does this look about right?

Thanks.

dunstonh

That is not aggressive. You havent included global emerging markets, asia pacific exc japan or global specialist. (China would fall into Asia).

That is more 8/10 with no downside protection. 85% western economies is medium/high risk. If you are going medium/high then you really need a bit of downside protection in there to rebalance against it. If you want agressive you need less Western and more Eastern/specialist/emerging.

nelly77_2

Thanks Dunstonh, By downside protection, do you mean cash / bonds?

dunstonh

Yes. and property when the time is right. It also allows you to offset higher risk investments.

Lets just say you used that 1-10 scale for all funds and your overall risk profile was 8. If you use funds that are rated in 9 and 10 you need to counterbalance them with funds of a lower risk to make sure you average out. You shouldnt ignore those higher risk funds but you can have a little bit of them.

You should also rebalance your portfolio as well and thats when having a safer lower risk chunk can make a big big difference.

nelly77_2

Ok i have had a good think, does this look more like it.

10% Property
10% Bonds
20% UK Equity Income
20% UK Equity Growth
10% European Equity
10% North American Equity
10% Far East Equity
10% Global Emerging Markets

Thanks