Which Funds? - FP New Generation Pension

TH1878

TCA wrote: »

Thanks again. Those links are handy after I painstakingly went through all the funds on citywire.co.uk on an individual basis noting their relative performances. I should say that there are also lower risks funds that I didn't note in my OP, so the range is wider.

As for the Group Scheme being written on a fee basis with FP paying nil commission, I've no idea about that. And not sure what it means to be honest or how it affects me. My last correspondence from FP says that Johnson Fleming (the scheme IFA) will get paid a commission from the charges paid by me. Is that what you mean?

It's a new scheme (about 1 year old), the previous version being run by DC Solutions. The transfer following the post A-day review was a bit hard to follow, with several different names of administrators and IFAs being banded about. I guess I'll have to contact them directly (or plough into the documentation) to find out if there are any ramifications for charges on leaving the scheme.

No probs - it's a tool called Analytics from Financial Express that does it, but you need to subscribe to use it.

Just had a word with someone at FP - the AMC's are the same for leavers so from a charge point of view you've got a decent rate (except that you don't get a large fund charge reduction on your fund). I was wrong - the adviser does get paid commission even though the AMC was so low - I assume it's because it's a large scheme. Anyway, that doesn't affect you now.

So your base Annual Management Charge is 0.6% plus the charge levied by the individual funds, which you've already listed so the choice is basically:

1) Stay where you are, select funds from ones available and benefit from the low charges
2) Move the pension, possibly incur higher charges, but select from a range of better and possibly more appropriate funds.

You've essentially got to weigh up whether you think the performance of funds elsewhere will negate the effect of the higher charges.

TCA

TH1878 wrote: »

1) Stay where you are, select funds from ones available and benefit from the low charges
2) Move the pension, possibly incur higher charges, but select from a range of better and possibly more appropriate funds.

You've essentially got to weigh up whether you think the performance of funds elsewhere will negate the effect of the higher charges.

Cheers for all your help TH1878.

Given my limited funds knowledge (and lack of crystal ball), I think I'll stick with the FP NGP. My judgement as to what's better or more appropriate would likely change every time I looked at things (probably in line with the performance of individual funds), so I'll probably make a choice along the lines I've indicated and see how that pans out.

Thanks

TCA

dunstonh

No probs - it's a tool called Analytics from Financial Express that does it, but you need to subscribe to use it.

I use analytics as well. Expensive but worth every penny.

Given my limited funds knowledge (and lack of crystal ball), I think I'll stick with the FP NGP.

Totally sensible call.

TH1878

TCA wrote: »

Cheers for all your help TH1878.

Given my limited funds knowledge (and lack of crystal ball), I think I'll stick with the FP NGP. My judgement as to what's better or more appropriate would likely change every time I looked at things (probably in line with the performance of individual funds), so I'll probably make a choice along the lines I've indicated and see how that pans out.

Thanks

TCA

Probably wise - the actual fund range on the old NGP pensions is better than I thought it was, so I'm sure you can construct a decent portfolio from it.

TCA

TCA wrote: »

I've selected a few funds below based on performance and fund ratings from various websites. Has anyone any views on maybe 4 or 5 from this lot? Or any other better combinations to add in from my list of options?

First State Asia Pacific Leaders
Artemis Global Growth
BlackRock UK Dynamic
BlackRock UK Smaller Companies
BlackRock UK Equity
Invesco Perpetual High Income

and maybe First State Global Emerging Markets Leaders

Well, I didn't have the confidence to go through with my selections and some 3 years plus later and I'm now looking at "what I might have won"! My FP Balanced Index Enhanced Fund of Fund has returned +19% over the 3 years to 30/9/11. As for the rest I was considering, over the same period:

First State Asia Pacific Leaders +53.9%
Artemis Global Growth +30.8%
BlackRock UK Dynamic + 3.6%
BlackRock UK Smaller Companies +26.2%
BlackRock UK Equity +24.1%
Invesco Perpetual High Income +21.8%
First State Global Emerging Markets Leaders +64.4%

So depending on the weightings, I could have done well, especially if I'd gone with First State Global Emerging Markets Leaders, although it appears I wasn't convinced of the risk at the time.

Maybe a case of he who hesitates is lost.......

Just wondering if I should go through the same process again. The fund now has a different mix to what I remember but still looks pretty much medium risk. Not sure now is the time to up the risk factor though.

Top holdings as at 31 Aug 2011 %
FP BlackRock UK Equity Index (Aquila HP) 34.69
FP BlackRock US Equity Index (Aquila HP) 11.61
FP BlackRock European Equity Index (Aquila HP) 10.86
FP BlackRock Fixed Interest Tracker 6.15
FP BlackRock Cash (Aquila HP) 4.49
F&C Cash 4.48
FP F&C Strategic Bond 4.13
FP BlackRock Overseas Bond Index (Aqulia Life) 4.12
FP Baillie Gifford Japanese Equity Pension 3.75
FP BlackRock Pacific Rim Equity Index (Aquila HP) 3.07

Asset allocation as at 31 Aug 2011 %
UK Equities 38.54
European Equities 12.78
US Equities 11.61
Cash 8.97
UK Fixed Interest 8.79
Overseas Fixed Interest 8.25
Asia Pacific Equities 5.19
Japanese Equities 3.75
Emerging Markets 1.83
Property 0.2

Linton

Perhaps this may cause the tracker enthusiasts a bit of thought (but then probably not).

Your geographic allocation is clearly lacking in the new economies area. IMHO you could reasonably aim for say 20% without being wildly risky.

The other major problem I see is that in going for general trackers your are automatically going for the large well established companies. The figure of the FTSE 100 comprising 80% of the FTSE All share gives the general idea. I believe the number is right but cant find a reference.

If you are looking for growth you should have some focus on the small company sector. Even UK small company funds have performed very well over the years.

TCA

Thanks Linton. Just in case it's not clear, I would point out that the holdings listed at 31st August are what comprise the FP Balanced Index Enhanced Fund of Fund (my default pension selection) and are therefore not any choices I have personally made. But of course I have chosen them by default by simply doing nothing!

jamesd

You're now in the somewhat fortunate position of things being not so different from where they were the last time you did this exercise. More known possibilities than the unknown back then, though. While some can try to replay what they did before it'll be interesting to see whether you change how you act to try to exploit the situation. Do note that, as in 2008, there is a significant possibility of additional substantial falls in markets.

For one of the more cautious Asian funds you might take a look at First State Asia Pacific Leaders. Compare it to Fidelity South East Asia to see the difference between relatively cautious and relatively high growth handling.

I'd go with Aberdeen Emerging Markets rather than First State for general emerging market coverage.

You might also look at JPM Natural Resources and wonder whether the reductions due to recession fears have mostly happened leaving lots of upside potential, or not.

Given your apparent isk tolerance I wouldn't suggest being in a hurry to switch a lot into these, maybe one percent a week or month so you don't suffer too much if there is another large drop. Up to you to decide how much and how fast or even if at all.