Brexit - go all cash in pension?

[Adam B]

walm said:

Adam - I think you just got people excited with the idea of a low risk 3-4% return product.

They are around but not pension-friendly maybe and not zero risk

Best idea recently IMHO - autocallable on Eurostoxx banks (SX7E) down 50% in last year. Coupon of 5.75% pa for two years provided doesn't drop a further 40%.

Not an FA, caveat emptor etc etc

[Ginge R]

Jockman said:

Nice one Adam. Sidicks has an unusual posting style but you get used to it if you persevere

Age, jocularity and familiarity have conferred on places like these, a gentle patina. We don't know each, but we 'know' each other. We argue like families around the telly sometimes, but it's more grumbling these days than it may once have been.. a hell for leather cyber knife fight.

[walm]

Adam B said:

They are around but not pension-friendly maybe and not zero risk

Best idea recently IMHO - autocallable on Eurostoxx banks (SX7E) down 50% in last year. Coupon of 5.75% pa for two years provided doesn't drop a further 40%.

Not an FA, caveat emptor etc etc

You would have to pay me an awful lot more than 5.75% to take on that particular risk, I am afraid!!!!
Keep them coming though!

[sidicks]

Adam B said:

please stop mentioning bonds as I never did, its a "UK inflation linked annuity target fund" so its target (and benchmark) is to achieve returns similar to an annuity + inflation.

An annuity is analogous to bonds - what do you think annuity funds are invested in?1

Adam B said:

thank you, not sure I will bother giving a view next time, the exact fund wasn't the point - the point was I had done exactly what the OP was considering for similar reasons

No, please do.

I'm used to people responding on financial issues that demonstrably have no clue what they are talking about, which makes me frustrated and I can respond in somewhat ascerbic style.

I was somewhat confused by your initial post and maybe overreacted to the contact and the claims didn't seem to tie up with the content. I think you've cleared things up now.

[Adam B]

walm said:

You would have to pay me an awful lot more than 5.75% to take on that particular risk, I am afraid!!!!
Keep them coming though!

what are your views in terms of global equity valuations today?

[Jockman]

Adam B said:

walm said:

You would have to pay me an awful lot more than 5.75% to take on that particular risk, I am afraid!!!!
Keep them coming though!

what are your views in terms of global equity valuations today?

Did you have to ask?

[sidicks]

sidicks said:

Adam B said:

please stop mentioning bonds as I never did, its a "UK inflation linked annuity target fund" so its target (and benchmark) is to achieve returns similar to an annuity + inflation.

An annuity is analogous to bonds - what do you think annuity funds are invested in?

Is this the Siemens Pension scheme? I've found this:

Inflation-linked Annuity Target
Invests passively in index-linked gilts, and actively in corporate bonds

This is why it appears you don't really understand what you are talking about!!

If this is the correct fund, it's managed by Fidelity and the literature states the following:
This option is designed to grow in line with inflation, but not achieve returns substantially in excess of inflation.

The Northern Trust pension fund has a similar strategy:

Inflation-Linked Annuity Target (Passive)
Fund Description
This fund invests in bonds, which are loans to a company, government or other organisation. This fund invests in bonds issued by the British Government and those issued by companies. The aim of the fund is to provide a stream of returns which broadly map the changes in inflation linked annuity prices.

Is the fund you invest in different to the above?

Edited by sidicks on Wednesday 6th July 19:43