Pension "Advice"

[oscar]

I know we dont tend to dish out advice, so this is more 'information' for a friend.

The current pension pot is just over £10K - no longer any funds being put into the pot as they have left that employment (and no other pension at present)

Fund is invested with FidelityInvestments "Core Growth" with a balanced lifestyle - which I believe relates to risk. Last years "growth" just about scraped 1%.

There are a number of other funds available, being Corporate Bond (passive); Diversified Growth; Emerging Markets; European Equity (passive); Global Equity (Passive and/or Active); Index Linked Bond; Japanese Equity (pass); Money Markets and Cash; Pacific Rim Equity (pass); Property; Shariah; UK Equity (Pas and/or Active) US Equity (Pass).

Currently, it is 100% Core growth, with around 5000 "units" at just over £2 per unit.

I am sure this could be better invested, just wondered if anyone had any (educated) ideas on the available funds. I beleive the current pot can be split, so as not to have the eggs in one basket as it is now.

EDIT: - This is apparently how the funds have compared over the last 12 months (18/11/11 to 18/11/12)

Corporate Bond - Passive 15%
Diversified Growth 3.89%
Emerging Markets 3.35%
European Equity - Passive 11.2%
Global Equity - Active 8.8%
Global Equity - Passive 9.95%
Index-Linked Bond 2.57%
Japanese Equity - Passive -2.41%
Money Markets and Cash 0.54%
Pacific Rim Equity - Passive 11.1%
Property 1.27%S
Shariah 7.96%
UK Equity - Active 16.58%
UK Equity - Passive 10.14%
US Equity - Passive 12.91%

[mgfboy]

Re: Pension "Advice"

Your mate is in a catch 20 situation, any investment choice is down to many factors, age, attitude to risk, requirements etc.

He should go and see a good IFA that does pensions, to get proper advice. The only problem with that is , it will cost probably more than he is willing to pay.

I've got 20 plus experience in this market and certainly wouldn't want to give advice with knowing a whole lot more and in the current market any positive return is a good thing!!!!

[oscar]

Re: Pension "Advice"

Your mate is in a catch 20 situation, any investment choice is down to many factors, age, attitude to risk, requirements etc.

He should go and see a good IFA that does pensions, to get proper advice. The only problem with that is , it will cost probably more than he is willing to pay.

I've got 20 plus experience in this market and certainly wouldn't want to give advice with knowing a whole lot more and in the current market any positive return is a good thing!!!!

Cheers MG - age is Mid 30s. Appreciate what you say, there is limited info on the above post, but I think thats about as much as can be gained form the site (percentages where worked out based on unit price - I dont think there is any information on how the funds are split up.

£10K I suppose isnt a massive sum in the grand scheme of things, and most of it is company money rather than their contributions. I suppose if they couldnt afford an IFA (think they may know a couple), they could take a punt an choose the 7/8 best performing bonds and split their money. - I know they like a gamble, not sure to what value though!!

EDIT: - Just found out I can get more info on the individual funds. I will post links to the fact sheets later today.

[mgfboy]

Re: Pension "Advice"

Cheers MG - age is Mid 30s. Appreciate what you say, there is limited info on the above post, but I think thats about as much as can be gained form the site (percentages where worked out based on unit price - I dont think there is any information on how the funds are split up.

£10K I suppose isnt a massive sum in the grand scheme of things, and most of it is company money rather than their contributions. I suppose if they couldnt afford an IFA (think they may know a couple), they could take a punt an choose the 7/8 best performing bonds and split their money. - I know they like a gamble, not sure to what value though!!

EDIT: - Just found out I can get more info on the individual funds. I will post links to the fact sheets later today.

It does all boil down to risk that one is willing to take, unfourtunatly high returns normally come with high risks, there is plenty of info out there but if they do know a few IFA's they should speak to them, becuase it's not just down to performance it also down to charges!!!

[oscar]

Re: Pension "Advice"

if they do know a few IFA's they should speak to them, becuase it's not just down to performance it also down to charges!!!

Of course. I think the charges are relatively stable and pretty much the same across the funds. I will post links up later, just in case they are unable to see the people they know. Not after advice per se, but I dont think the fund they currently have is likely to achieve much (and believe it is closed now to new people)

[Undercover Elsa]

Re: Pension "Advice"

Hi Oscar,
If he's in a Union, might be worth checking whether they offer a free or discounted initial meeting with an IFA. My daughter got one through hers, the RCN.

[oscar]

Re: Pension "Advice"

EDIT: - This is apparently how the funds have compared over the last 12 months (18/11/11 to 18/11/12)

Corporate Bond - Passive 15%
Diversified Growth 3.89%
Emerging Markets 3.35%
European Equity - Passive 11.2%
Global Equity - Active 8.8%
Global Equity - Passive 9.95%
Index-Linked Bond 2.57%
Japanese Equity - Passive -2.41%
Money Markets and Cash 0.54%
Pacific Rim Equity - Passive 11.1%
Property 1.27%S
Shariah 7.96%
UK Equity - Active 16.58%
UK Equity - Passive 10.14%

US Equity - Passive 12.91%

Finally got round to this - have posted links to the fact sheets for the best 6 performers over last 12 months - think this is how my mate is looking to divide their money.

Corporate Bond - Passive 15% LINK
European Equity - Passive 11.2% LINK
Pacific Rim Equity - Passive 11.1% LINK
UK Equity - Active 16.58% LINK
UK Equity - Passive 10.14% LINK
US Equity - Passive 12.91% LINK

[mgfboy]

Re: Pension "Advice"

all I can say past performance is no indicator of future performance!!!!