Choosing a pension fund...
Discussion
to invest in.
I don't mean a Life Insurance company and it's balanced portfolio, but looking at the various funds that are held within an insurance company.
E.g. My Scottish Windows pension has just been moved to a low risk portfolio, ( even though I am 15 years off retirement)
Looking through the various funds this one caught my eye :
JPM Natural Resources CS.
https://am.jpmorgan.com/gb/en/asset-management/adv...
Most of the funds are invested in oil/gas or mining. Historically not great but since COVID it's seen some good growth.
I like the idea of investing in it, may see some decent gains in a relatively short < 5 years space.
Has any body got any experience with this fund?
I don't mean a Life Insurance company and it's balanced portfolio, but looking at the various funds that are held within an insurance company.
E.g. My Scottish Windows pension has just been moved to a low risk portfolio, ( even though I am 15 years off retirement)
Looking through the various funds this one caught my eye :
JPM Natural Resources CS.
https://am.jpmorgan.com/gb/en/asset-management/adv...
Most of the funds are invested in oil/gas or mining. Historically not great but since COVID it's seen some good growth.
I like the idea of investing in it, may see some decent gains in a relatively short < 5 years space.
Has any body got any experience with this fund?
My take is it would be an odd move to bet a significant chunk of your pension on a single sector. I'm not sure there's any historical evidence to suggest Natural Resources will outperform a broader index (which captures all sectors) over the kind of timescale you're looking at.
Also buying a managed fund AFTER a period of strong outperformance usually ends in tears. Investors buy when things have done well, then sell when it does badly. We see it time and time again. You want to buy something you'd be convinced to buy more of if it became cheaper, the entire world stock market ticks that box.
Also for what it's worth, these figures show that the active decisions of the managers are losing investors in this fund a lot of £'s compared to just buying the index it's supposed to beat;
Also buying a managed fund AFTER a period of strong outperformance usually ends in tears. Investors buy when things have done well, then sell when it does badly. We see it time and time again. You want to buy something you'd be convinced to buy more of if it became cheaper, the entire world stock market ticks that box.
Also for what it's worth, these figures show that the active decisions of the managers are losing investors in this fund a lot of £'s compared to just buying the index it's supposed to beat;
I didn't want to pay for my own advice so I basically copied the strategy from this thread from May. I fiddled with the allocations and found 5% for developing economies. This isn't advice because I haven't a clue 
Judging by your comment "has just been moved" it sounds like your pension may be in a default 'lifestyling' fund that starts moving towards bonds the nearer one gets to retirement.
That isn't necessarily a bad thing if you intend to buy an annuity on retirement, but if you intend to leave your pension invested into retirement and drawdown from it, then its a much longer investment horizon and you should turn off the 'lifestyling' to keep a higher percentage in equities rather than bonds.
Global tracker index funds is the sensible choice.
That isn't necessarily a bad thing if you intend to buy an annuity on retirement, but if you intend to leave your pension invested into retirement and drawdown from it, then its a much longer investment horizon and you should turn off the 'lifestyling' to keep a higher percentage in equities rather than bonds.
Global tracker index funds is the sensible choice.
This fund forms part of some portfolios that I'm involved in. However, it only represents around 4% of the overall holdings.
I have to say that putting all of your pension into this single fund is a really bad idea. It's highly volatile, so there can be big valuation swings. The ongoing charges are comparatively high, too.
I have to say that putting all of your pension into this single fund is a really bad idea. It's highly volatile, so there can be big valuation swings. The ongoing charges are comparatively high, too.
Halitosis said:
Judging by your comment "has just been moved" it sounds like your pension may be in a default 'lifestyling' fund that starts moving towards bonds the nearer one gets to retirement.
That isn't necessarily a bad thing if you intend to buy an annuity on retirement, but if you intend to leave your pension invested into retirement and drawdown from it, then its a much longer investment horizon and you should turn off the 'lifestyling' to keep a higher percentage in equities rather than bonds.
Global tracker index funds is the sensible choice.
Yes this is basically what is happening, so am looking for options to understand the risks. It’s not a large sum money compared to most ph’ers but I don’t want to lose it either.That isn't necessarily a bad thing if you intend to buy an annuity on retirement, but if you intend to leave your pension invested into retirement and drawdown from it, then its a much longer investment horizon and you should turn off the 'lifestyling' to keep a higher percentage in equities rather than bonds.
Global tracker index funds is the sensible choice.
Will look at index funds. ta!
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