Pension fund value
flopsy1973
Posts: 623 Forumite
Hi
Please see the below info regarding my work pension scheme which I have been in the last 16 years. I had my latest statement recently but the value has not really risen that much. Am I in the wrong funds this performance is shocking. any feedback would be helpful
Fund value Mar 17 £73,006
Fund Value Mar 18
SL Schroder recovery pension fund £14,304
Standard life property pension fund £8,117
SL Fidelity asia pension fund £20,801
SL Invesco Perpetual high income pension fund £15,457
SL SLI global absolute return strategies pension £6,368
SL M and G global basics pension fund £15,665
Total £80,713
Total payments in last 12 months £5,120
Please see the below info regarding my work pension scheme which I have been in the last 16 years. I had my latest statement recently but the value has not really risen that much. Am I in the wrong funds this performance is shocking. any feedback would be helpful
Fund value Mar 17 £73,006
Fund Value Mar 18
SL Schroder recovery pension fund £14,304
Standard life property pension fund £8,117
SL Fidelity asia pension fund £20,801
SL Invesco Perpetual high income pension fund £15,457
SL SLI global absolute return strategies pension £6,368
SL M and G global basics pension fund £15,665
Total £80,713
Total payments in last 12 months £5,120
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Comments
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What's shocking about it?0
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flopsy1973 wrote: »Hi
Please see the below info regarding my work pension scheme which I have been in the last 16 years. I had my latest statement recently but the value has not really risen that much. Am I in the wrong funds this performance is shocking. any feedback would be helpful
Fund value Mar 17 £73,006
Fund Value Mar 18
SL Schroder recovery pension fund £14,304
Standard life property pension fund £8,117
SL Fidelity asia pension fund £20,801
SL Invesco Perpetual high income pension fund £15,457
SL SLI global absolute return strategies pension £6,368
SL M and G global basics pension fund £15,665
Total £80,713
Total payments in last 12 months £5,120
What's shocking? You've had a mix of high and low risk funds invested in markets that have been very volatile recently. At one point in the year, your investments were up over 10%, but fell in value, as did most investments, at the end of January this year.
Return on that selection of funds 01Mar17 - 01Mar18 was approx 7.53%
Return on that selection of funds 31Mar17 - 31Mar18 was approx 3.83%
Your portfolio seems to have had reasonable growth given the markets over that time.
What kind of returns were you expecting on that portfolio over those 12 months?I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.0 -
I cant see anything shocking there. A few of the funds are not ideal for certain points of the economic cycle but thats what you get when you pick such funds and dont review them. However, returns seem reasonable given the last 12 months.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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The returns just seemed very low. Would you expect identical isa and pension funds to give the same returns? I have another 15 years before I need this so took the high risk view are there some I need to maybe review and drop ? Thanks0
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You've only shown the returns for one year, which is why people are struggling to see why you are so bothered by the 17/18 returns, which aren't out of line with the market.
If the charges are the same, you'd expect 'identical' ISA/pension funds to give the same return - both have tax favoured status while invested. Difference is that you'd get tax relief (up to certain limits) on pension contributions and can take 25% of the 'pot' tax free; with an ISA, contributions are made from taxed income, but are tax free when withdrawn (I'm sure you know that, but possibly someone else reading may not be quite sure).0 -
The returns just seemed very low.
Relative to what? An economic cycle is around 10 years. In that ten year period you will get positive years, negative years and nothing years. You need to average out the good, bad and nothing years.
You are talking about just 1 year and we have just come off a 10% market fall. So, what were you expecting relative to that?I have another 15 years before I need this so took the high risk view are there some I need to maybe review and drop ?
its not a great spread and pretty high risk overall. Easily capable of a 35% loss in the same period. How are you going to feel when you lose over a third of the value? (and its when, not if)I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
flopsy1973 wrote: »The returns just seemed very low. Would you expect identical isa and pension funds to give the same returns? I have another 15 years before I need this so took the high risk view are there some I need to maybe review and drop ? Thanks
By definition, identical funds would show identical returns.
FWIW overall your fund choices are not high risk. Property, high income (why that in a 15 year portfolio???) and global basics for example. Maybe medium. You should see mine if you want high risk
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So what type of funds are you invested in if you consider these not high risk. ?
I am willing to take some risk with this so are there better funds within the standard life range that would be more suitable0 -
You cannot measure performance of investments over just one year particularly this last year which has been relatively poor. Look at it over 5 or 10 years. You can really only assume around 4% to 7% so it looks like it has done ok. If you go for high risk it could reach 10% or more but equally you could lose 25% or more of the capital value. It looks relatively well diversified both in terms of asset classes and geographies but not particularly high risk.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0
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flopsy1973 wrote: »So what type of funds are you invested in if you consider these not high risk. ?
I am willing to take some risk with this so are there better funds within the standard life range that would be more suitable
Its entirely up to you what is suitable - you need a strategy to help decide that. If you are looking at funds from the SL range I would consider a balanced range of funds across the various regions. I notice you have an allocation to Asia but where is europe and the US? Why a UK income fund.
Standard Life does not have a great fund choice. Don't take this as a recommendation but if it was me with the SL range I would look at Vanguard US, Old mutual mid cap and Fidelity European to add to your Asia fund.
You also get access to VLS 80 (passive) and Baillie Gifford managed (active) if you want a simple approach0
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