Accompaniment to L&G Global Equity Fixed Weights 60:40 Index
Angie_B
Posts: 269
Forumite
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:
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!
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!
0
Comments
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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'0
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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!0 -
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.0
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Op I think your strategy and choices sounds very reasonable.0
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... 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.0
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