Soldato
I wouldn't personally expect little olde England to outperform the powerhouse that is the US any time soon, if ever.
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
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Yeah but the companies that make up these two markets are totally different. They also have different regulations etc. Its a fact that over the long term active fund managers usually under perform their benchmarks, you wont be any different, keep it simple!
Soldato
It depends on your portfolio and the manager.. if it’s in an accumulated etf it will just buy more shares for that company so one of shares of the ETF will hold more shares in that company, if there’s a portfolio manager they may by more shares in the same company or a different company.
Probably.
Isnt there some currency reason as well? So if the Pound was to strengthen the value of my non-UK stocks fund would fall. But then at the same time my regular contributions would buy more of it with a stronger pound so not sure if this matters or not.
Soldato
I'm sure you'll make some money in the UK market, I just think you'll make more elsewhere. As ever it's a personal choice as it's your money and your future wealth you're talking about.
Im in the margins now anyway. With 80-85% in global non-uk equities, it probably doesn't make much difference if I have 5% in UK or 10% really. I'll think about it some more.
Vanguard have a table here which shows you exactly how currency movements work.
Vanguard Asset Management | Personal Investing in the UK | Vanguard UK Investor
So what I see from that is this one.
Vanguard FTSE Global All Cap Index Fund
5y 69%
Vs
Life strategy target 2055
5y 45%
Are those the correct numbers to be looking at to compare performance?
I dunno if it's just a personal preference thing...we've been pretty stagnant since the dotcom bubble burst in 2000.
FTSE 100
Versus S&P 500...
I got killed by a ****** default Aviva fund that weighted mostly towards the UK in my early pension investment years. Wish I had weighted towards the US way earlier.
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Scottish Widows Pension Portfolio Two CS8
It says +12.6% over the last year, is that good?
It says +12.6% over the last year, is that good?
Not very good compared to a global fund and awful compared to US stocks. 1 year is a short timeframe to compare though.
Soldato
Dude, the S&P 500 averages out at 10% increase per year, I would be happy with a 12% return for last year or any year. The US market itself, IIRC was running in the red until November when it went up to +27%.
Pension funds should be invested in low volatility stocks, therefore you won’t get extreme drops nor extreme raises..
He asked if it was good over the last year. The only way to answer that question is to compare to what the alternatives were last year, and that was not good. If the question was "is 12.6% return per year good?" the answer would be different, of course.
Would you really be happy with 12% return in "any year"? What about 2020-2021 when the global large cap benchmark was up 35%?
Pension investments should absolutely not be made in low volatility stocks. They should be made in high growth funds regardless of volatility, until nearing retirement.
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Soldato
Yeah I'm mainly S & P and have been for some time now.I dunno if it's just a personal preference thing...we've been pretty stagnant since the dotcom bubble burst in 2000.
FTSE 100
Versus S&P 500...
I got killed by a ****** default Aviva fund that weighted mostly towards the UK in my early pension investment years. Wish I had weighted towards the US way earlier.
With dividends reinvested the FTSE isn't quite so bad but still well behind. Since about 2008 after the crash the market has been all about very cheap money which favoured growth stocks, the UK market has very little of that. The annualised performance of the S&P500 over the last decade is well above historical norms, those trends usually do not continue forever but of course one cannot time it well.I dunno if it's just a personal preference thing...we've been pretty stagnant since the dotcom bubble burst in 2000.
FTSE 100
Versus S&P 500...
I got killed by a ****** default Aviva fund that weighted mostly towards the UK in my early pension investment years. Wish I had weighted towards the US way earlier.
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If growth slows in the US stocks, would they switch over to dividends? Having acquired a high share price the switch to dividends could then continue fund growth going even if the share prices themselves stagnate?
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Is the great crash of the 2020's here?
BUY BUY BUY!
Loads of stocks still haven't recovered over the past few years. I suspect geopolitical tensions aren't helping right now.
A decent dip would be nice so I can stuff a load more money in because I'm looking at a 10+ year time-frame before I can touch my pensions.
Soldato
That was 2020. I am expecting stocks to recover as we get closer to the US election, no president want's a **** economy going into an election, so I'm pretty sure there'll be some discussions about cutting interest rates.
Hope for the best, plan for the worst.
Soldato
Does anyone pay attention to the FTSE 100 index? I take a look every now and again and was surprised to see it's broken through the 8000 mark this week, it hit 8,076.52 earlier today - after being stagnant below that for ages.