L&G Global Equity 70:30 Index Fund value dropping

[nlldavies]

Firstly I have to say that I am crap with how pensions work.

I had a stakeholder pension with the company I work for, originally managed by Invesco. The company stopped doing that stakeholder and started a new one up. Everyone who had the Invesco stakeholder had their pension moved to Legal and General, no further funds were put into them.

I've had my yearly statements and each one shows the pension fund value increase each year. Stopped having statements last year and had to register online. Did this last night and noticed the pension fund had dropped by 2k since December and a further £500 since I registered lastnight. Should I be doing something about this?

I'm charged a monthly management fee of £18 so expect L&G to be doing what is right for it. Am I panicking over nothing?

[Ozzie Osmond]

IMO "don't panic".

[ringram]

So think about what you can control in investments.

You can control asset allocation (bonds, vs emerging markets, vs defensives.. etc..)

You can also control fee's

You cant control asset prices. So that being said if you want to do anything look at your asset allocation and fee's

If you dont like what you see in the way of capital value then the argument is that your asset allocation is not compatible with your risk profile.

Check out your total costs on the pension platform, you might be better off throwing it into a low cost platform and a few lost cost ETFs like vanguard.

In other words, I think you should review costs and asset allocation. Google is your friend aka Zero cost

[ringram]

BTW nothing wrong in general terms with a 70:30 allocation, nor the fact its gone down given the wider market movements.

Can you do better for yourself? Thats the £1M question. See previous for more details