Soldato
It's not irrelevant if he's younger and it's invested poorly tbh.
Nobody needs a load of bonds in a pension if they are in their 20's for example.
Pension fund performance - do you monitor yours, how is it doing, do you actively change it?
- Thread starter danlightbulb
- Start date
Nobody needs a load of bonds in a pension if they are in their 20's for example.
For sure, but just saying a fund has done crap in a single year when its a 30-50 year window isn't enough information to take any conclusion whatsoever.
If its done badly over the last year then its safe to assume its a dog. It does matter, a lot.
Mines just 70/30 split.
But so far it's made no difference they are up basically identical. But only been 2-3 months
It seems to be a common thing that UK default pension funds from employers have a heavy UK bias. You have to be careful taking the fund choices at face value because, for example, one of the "global tracker" funds in our catalogue is 50% UK allocation when you look at the breakdown which makes no sense to me.
You still have plenty of time. I didn't start getting really aggressive with pensions and investments until about 8 years ago. Backtesting with drawdown tools is looking very good for me now although I don't have to factor in rent/mortgage which is a huge help.
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Soldato
Mine is held like this on the fully managed Nutmeg pension. Risk level 9/10.
TWRR over the last year was 17.66%
TWRR over the last year was 17.66%
| iShares Core S&P 500 UCITS ETF | 17.00% |
| iShares Core S&P 500 UCITS ETF (GBP Hedged) | 15.90% |
| iShares Core FTSE 100 UCITS ETF | 8.70% |
| Vanguard FTSE 100 UCITS ETF | 7.80% |
| Amundi MSCI Japan UCITS ETF | 4.90% |
| iShares Core MSCI EMU UCITS ETF (GBP Hedged) | 4.80% |
| UBS Irl ETF PLC - MSCI USA Socially Responsible UCITS ETF | 4.00% |
| JPMorgan Betabuilders US Small Cap Equity UCITS ETF | 3.50% |
| iShares Core MSCI Emerging Markets IMI UCITS ETF | 3.40% |
| iShares MSCI EM EX-China UCITS ETF | 3.30% |
| iShares Core MSCI EMU UCITS ETF | 3.00% |
| SPDR Bloomberg 15+ Year Gilt UCITS ETF | 2.50% |
| UBS MSCI ACWI Socially Responsible UCITS ETF (GBP Hedged) | 2.20% |
| Vanguard FTSE 250 UCITS ETF | 2.10% |
| iShares Fallen Angels High Yield Corporate Bond UCITS ETF | 2.00% |
| iShares MSCI USA Small Cap ESG Enhanced UCITS ETF | 1.90% |
| iShares Core MSCI Pacific ex Japan UCITS ETF | 1.70% |
| UBS MSCI Switzerland 20/35 UCITS ETF (GBP Hedged) | 1.60% |
| UBS MSCI Canada UCITS ETF (GBP Hedged) | 1.50% |
| UBS MSCI USA Socially Responsible UCITS ETF (GBP Hedged) | 1.30% |
| iShares USD High Yield Corporate Bond UCITS ETF (GBP Hedged) | 1.20% |
| UBS Bloomberg USD Emerging Markets Sovereign UCITS ETF (GBP Hedged) | 1.10% |
| UBS MSCI EMU Socially Responsible UCITS ETF | 1.10% |
| UBS MSCI Japan UCITS ETF (GBP Hedged) | 1.10% |
| Xtrackers MSCI Nordic UCITS ETF | 1.10% |
| iShares MSCI Japan Small Cap UCITS ETF | 0.90% |
| Cash | 0.30% |
Soldato
Just had a quick look on HL.co.uk to see how my SIPPP is doing and one fund in particular is just mental.
Vanguard FTSE Developed World ex-UK Equity Index - 100.90% gain in the five years I've held it!
Not gonna complain and if it carries on in that manner for the next 17 years, I'll be quite happy.
Vanguard FTSE Developed World ex-UK Equity Index - 100.90% gain in the five years I've held it!
Not gonna complain and if it carries on in that manner for the next 17 years, I'll be quite happy.
Is this some portfolio they've built for you because that looks like it might have a fair bit of overlap going on?
Definitely not a fan of managed funds - learned that lesson. Even if they do manage to outperform the market, chances are the extra gains will be swallowed up in fees.
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Soldato
Was going to say, that's an awful lot of funds doing very similar things.
Following the outbreak in the early 2000s of having a fund for just about anything - having come from Cautious, Balanced, Adventuours and of course With Profits - there was a drive in the 2010s to move investors into Risk Managed funds - the FCA didn't, and still doesn't, like financial advisers being like another level of fund manager. To that end, these risk managed funds became favourable. Most will recognise the Vanguard Lifestrategy or Blackrock Consensus.
More recently, the FCA has had another stab at the subject by encouraging advisers to use Model Portfolio Services rather than in-house portfolios (or Central Investment Proposition for the fancy pants practices)
What you get now is a blizzard of funds under an MPS type banner. These MPS come in various guises and some are better than others. Most are relatively cheap which is a good thing and regular rebalancing is also very good. You'll get more exposure to different assets (Lifestrategy for instance can be criticised a bit for being a bit blunt - Equities/Fixed Interest)
Soldato
The problem with finance in schools is that everything changes.
When I was at school most people were taking endowment mortgages, the normal pension was a DB one, ISAs didn't exist (I think the predecessor was about to launch), houses were cheap but interest rates were high, there was an insurance policy that you were charged for from lenders that benefitted them but not you, it was around the time that it became possible to stop taking house insurance from the lender which was the default etc
Sometimes a little knowledge, especially if its out of date is worse than none.
I have been an advocate that you should be able to go to college (etc) in the evening to take a short "course" based over say 4 weeks that goes over these subjects, but using up to date possibilities now.
They should be free, paid for from local taxation.
Targeting people who want to learn is always better than forcing it down peoples throats who don't.
When I was at school most people were taking endowment mortgages, the normal pension was a DB one, ISAs didn't exist (I think the predecessor was about to launch), houses were cheap but interest rates were high, there was an insurance policy that you were charged for from lenders that benefitted them but not you, it was around the time that it became possible to stop taking house insurance from the lender which was the default etc
Sometimes a little knowledge, especially if its out of date is worse than none.
I have been an advocate that you should be able to go to college (etc) in the evening to take a short "course" based over say 4 weeks that goes over these subjects, but using up to date possibilities now.
They should be free, paid for from local taxation.
Targeting people who want to learn is always better than forcing it down peoples throats who don't.
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Soldato
Only 37 years to go...............
It's been 2/3 years I think and has done poorly. I do know what you mean that you have to look long term but was good to know that I choose different funds with aviva.
Soldato
Yes, I haven't touched it because I don't feel confident I'd manage it properly to make it worthwhile not paying fees.
Soldato
In some ways I think it's true that you don't really need to manage it actively.
Pick a global tracker fund that is reasonably cheap on fees and has been performing pretty well. Put 100% into that if you want to not worry about multiple funds etc.
I don't think you need a complicated portfolio when a single global tracker can do a similar job. You'd have to check your fund performance vs the global trackers though over the last few years.
I feel lucky that when I started work at 19 the company I was with paid for a pensions advisor for new starters who basically told me to put as much as I could in and on as high a risk as possible.
But even now I wish I'd put even more in.
Where I work now still have people that are clueless about it all, even after being told that they should be putting around 15% in a few of them upped there's to 5%.
But even now I wish I'd put even more in.
Where I work now still have people that are clueless about it all, even after being told that they should be putting around 15% in a few of them upped there's to 5%.
They should just teach compounding in schools and finance basics. Also teach kids investing and stock markets are not scams and try to educate that mindset out of the population.
Soldato
To be fair, you're unlikely to go far wrong with one of these off the shelf portfolios from the more recognisable firms. With JP Morgan behind it, Nutmeg's asset allocation and rebalancing will be fine.
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Soldato
This is what my pension was in by the way, I think almost anything would be better than this! 
Soldato
You know that the S&P 500 (VUAG) makes up almost 60% of VWRP...
So for every £1000 pounds you are putting in, if it's at 70:30 your basically putting in at total of £720, £420 (60% of 70%) and £300 into the S&P 500?
I knew it was some. I didn't know it was 60pc
Soldato
60% might be a bit of an overestimate on my part, but IIRC.. North America makes up 61.?? Of the VWRP, with the S&P taking the lions share… the other percentages will be the Russell 2000 and whatever the Canadian stock market is.. I think there’s less than 2% difference between the percentage of Microsoft (the heaviest weighted share) in both trackers..
Nothing wrong with it as long as that’s your plan..
and so yeah the two indexes will preform similar.
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