Funds

joe379 · Post by **joe379** » 28 Jul 2020, 16:37

Hi,
What do people think of the funds available to invest in on the pension site? I find some of the choices strange. For example for the global growth the fund has poor returns while most competitors in that market have far better returns. Dodge and Cox who run that fund aren’t exactly a well know name. Why not a company that has a track record in that area, such as Rathbone or Axa or Lindsell train.
I feel the 10 year cycle is very defensive and would be good to have the option of a global growth or Tech fund.
Ideally we should have a platform like Hargreaves Lansdown which would let us invest with far better providers. Any thoughts?

Post by **RobertT** » 28 Jul 2020, 19:49

I can't really comment on why some funds are chosen instead of others, perhaps that's something you need to ask the RMDCP trustees or Scottish Widows. But I suspect charges may be an issue and some might not deal with company DC schemes.

I don't know much about Dodge & Cox, but a quick Google suggests they've been in existence for 90 years and currently have 6 funds, their Global Stock fund has been going since 2008. I would agree the returns haven't been particularly good, but past performance isn't always a good guide to future returns.

10 years to go until retirement and you're getting into the territory of slowly moving away from equities and into safer investments. If you don't want to do that, then don't sign up to the lifecycle option and manage your pension savings yourself, obviously using the funds available.

Most companies often have similar arrangements as the RMDCP does with SW, they offer a platform with basic fund choices – a few equity funds plus bonds & cash. That's because most people haven't really got much idea how to invest. They often have the default lifecycle options too, which members don't have to think too much about.

In practice you're never going to please everybody. There's always going to be people who want the greater choice that HL(or similar) would provide, but the majority wouldn't have a clue!

koolishy67 · Post by **koolishy67** » 28 Jul 2020, 21:07

I chose sharia fund and last 10 years performance is excellent holding mostly tech stocks may be that's why I wish we have choice of like fundsmith Lindsell and Baillie gifford

silver_fox · Post by **silver_fox** » 23 Aug 2020, 15:55

I too am not really happy with the funds on offer. I'd like the choice of vanguard index tracking funds.
The passive equity fund we can choose is 30% UK which is very high when the UK is really 5-6% of the world.
The ethical fund is probably better and also has low fees but I don't especially want to limit myself to ethical only.
Shariah has performed well but is 70% USA , a true global tracker is more like 50-60% USA.
Anyone here changed from the default lifecycle (blended equity) option???

Post by **RobertT** » 23 Aug 2020, 16:35

silver_fox wrote:I too am not really happy with the funds on offer. I'd like the choice of vanguard index tracking funds.
The passive equity fund we can choose is 30% UK which is very high when the UK is really 5-6% of the world.
The ethical fund is probably better and also has low fees but I don't especially want to limit myself to ethical only.
Shariah has performed well but is 70% USA , a true global tracker is more like 50-60% USA.
Anyone here changed from the default lifecycle (blended equity) option???

You can invest in as many of the available funds as you want, which might go some way to give you the blend you want?

silver_fox · Post by **silver_fox** » 23 Aug 2020, 19:08

True you can invest a % in more than one fund, but it's not as straightforward as investing the whole lot in a vanguard global equity tracker ( vwrl for example )

bucks123 · Post by **bucks123** » 24 Aug 2020, 14:54

i have 60% blended equity / 40% diversified bonds in my RM DC pot.

Needs me to do some rebalancing once a year (unlike my own vanguard lifestrategy 60 fund I hold in a SIPP which rebalances automatically).