Accompaniment to L&G Global Equity Fixed Weights 60:40 Index

Hi all,

I am looking for some opinions on my new company pension options and my plans going forward.

I generally invest in multi-asset global funds (VLS80 (25%), HSBC Global Strategy Balanced (25%) and Dynamic (35%)) and also have some Fundsmith (10%).

My new employer pension has a limited number of funds to choose from, with the most diversified being L&G Global Equity Fixed Weights (60:40) Index Fund.

From the L&G factsheet:
The fund will invest 60% in the UK and 40% overseas. The fund's overseas asset distribution is fixed with 14% in North America, 14% in Europe (ex-UK), 7% in Japan and 5% in Asia Pacific (ex-Japan).

I am concerned that the L&G Global Equity Fixed Weights (60:40) Index Fund is too UK biased and thus was considering adding another fund to my portfolio to balance the L&G fund, perhaps L&G International Index Trust which picks up the likes of Apple, Amazon, Microsoft etc. and then add some Vanguard Global Bond Index

I am currently 33 years old so am happy to be relatively adventurous for the next 10-15 years.

Any opinions on the accompaniment to the L&G Global Equity Fixed Weights 60:40 Index? Thanks!

Comments

  • ColdIron
    ColdIron Posts: 8,790
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    Why try to bend that fund by adding to it if it's so far different to what you want? You could just add UK Equity to the (ex-UK) International Index Trust and then the bond element you want. As the Irish say when asked for directions: 'Well I wouldn't start from here'
  • Angie_B
    Angie_B Posts: 269
    First Anniversary Name Dropper First Post
    Forumite
    ColdIron wrote: »
    Why try to bend that fund by adding to it if it's so far different to what you want? You could just add UK Equity to the (ex-UK) International Index Trust and then the bond element you want. As the Irish say when asked for directions: 'Well I wouldn't start from here'

    The only two fund options offered by my company pension scheme are the L&G Global Equity Fixed Weights 60:40 Index or L&G UK Equity Index. Anything added would have to be outside of my pension.

    I am a higher rate tax payer so I believe the pension wrapper makes the most sense tax-wise. The pension forms probably 2/3 of my total annual investment (S&S ISA and pension) so I would not be able to put enough into an ex-UK fund to create the balance I would generally look for with just the UK Equity fund in the pension. As such, I was thinking that the L&G Global Equity Fixed Weights 60:40 Index was closest but could do with a bit extra ex-UK invested outside of the pension to balance it.

    It would be great if my pension scheme offered a more global equity fund but they don't, so I have to work with what I can. Thanks!
  • Prism
    Prism Posts: 3,791
    First Anniversary Name Dropper First Post
    Forumite
    Some company schemes allow a partial transfer out to a SIPP which would give you more choice. Might be worth considering when you reach a significant value.
  • AnotherJoe
    AnotherJoe Posts: 19,622
    First Anniversary Name Dropper First Post Photogenic
    Forumite
    Op I think your strategy and choices sounds very reasonable.
  • kidmugsy
    kidmugsy Posts: 12,709
    First Anniversary Name Dropper First Post Combo Breaker
    Forumite
    Angie_B wrote: »
    ... the L&G Global Equity Fixed Weights 60:40 Index or L&G UK Equity Index. Anything added would have to be outside of my pension. ... The pension forms probably 2/3 of my total annual investment.

    So if your company pension is in that fund and all your other investments are 100% non-UK you end up with 40% UK and 60% abroad. That doesn't sound too bad, especially since many of the big companies quoted on FTSE earn much of their revenue abroad anyway.

    More of a problem is that the FTSE-100 is dominated by a few sectors - oil, mining, banks, ... So it would be ideal if your other investments were light on those sectors.
    Free the dunston one next time too.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.2K Banking & Borrowing
  • 249.8K Reduce Debt & Boost Income
  • 449.3K Spending & Discounts
  • 234.4K Work, Benefits & Business
  • 606.7K Mortgages, Homes & Bills
  • 172.7K Life & Family
  • 247.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards