Most global equity funds are USA heavy but that’s because they mimic the stock market as a whole
This video does a great job at explaining it
https://youtu.be/98uYT3km5vk?si=dz5FzNjWUiLcfph_
Most global equity funds are USA heavy but that’s because they mimic the stock market as a whole
This video does a great job at explaining it
https://youtu.be/98uYT3km5vk?si=dz5FzNjWUiLcfph_
Below seems to be relevant info, but to be honest I'm not sure. Given the option I think I'd want to track as close as possible, but this seems the best of the pre-canned workplace pension options available to me.
Investment Objective
The Fund aims to provide long term growth.
The Fund mainly invests in company shares, also known as equities, from around the world. Investing mostly in equities means that
the Fund's value can change a lot in a short period of time. For this reason, it may not be a suitable choice if you'd like a more
stable fund or if you're close to retiring
Benchmark performance shown in our tables and charts is for comparison purposes only and is based on Total Returns, which
assumes the reinvestment of any income. The benchmark will not include any costs and charges that apply to the Fund, which could be
a reason why the performance of the Fund may not exactly match the performance of the benchmark.
Benchmark constituents:
- From 01/11/2023: 44% MSCI World Index, 44% MSCI World Index GBP Hedged, 12% MSCI Emerging Markets
- From 16/03/2018 to 31/10/2023: MSCI All Country World Index
- Prior to 16/03/2018: 30% FTSE All-Share Index & 70% FTSE AW - All World (ex UK) Index (75% hedged)
I believe you can have both DB and DC if you wish, could set up a SIPP. If hypothetically you're a higher rate tax payer, , putting 5k annually in a LISA costs you 4k, whereas putting 5k annually in a DC pension would cost you 3k. Worth a thought although may not be right for you of course.
Yes clearly the fund provider has changed its own benchmark a couple of times over the years so its difficult to directly compare. The new benchmark appears to be a pro-rated average of three global indexes so performance from this year should be closer to the benchmark (i.e. the benchmark being more appropriate, not that your fund will suddenly perform better!).
To be fair, I think your fund of funds is just what I would take if it were available to me: it includes emerging markets such as India etc., which overcomes the lack of exposure a straightforward MSCI World tracker carries as explained so clearly by Montello. The US has had an incredible period of growth, but the better question is where the next growth will occur.
Last edited by Halitosis; 27th March 2024 at 15:10.
Ah ... if you know please advise as that is the big question ... usually not the sector that has just enjoyed a big melt up ...
The bottom line is no one knows so the best you can do is diversify ... as they say its the only free lunch in investing.
I can't help but think the industry deliberately tries to make this stuff as opaque as possible leading to people losing interesting allowing the industry to underperform for clients and bump up their own fees. All that mucking about with the benchmark above, how is that helping anyone make a comparison?
Note the bonds sector has impacted a lot of pensions recently with automatic "life styling" making matters worse not better ...
https://www.telegraph.co.uk/money/pe...nsion-savings/
https://www.express.co.uk/finance/pe...-crash-savings
off the back of this i looked into the compositon of my index tracker, the vanguard world index (VWRP). i'd been thinking about shifting more to the US, but on checking VWRP seems to be 66% US already! guess i don't need more exposure...
Aye most World Trackers are US dominated because the US dominates world markets ... what's your thinking about wanting more US focus??? Currently at all time highs ...
I did some analysis on this in post #21 https://forum.tz-uk.com/showthread.p...=1#post6372260
yes, but as warren buffett says, there's never been a good time to bet against the S&P.
i dunno, i realise valuations are high but on a 5-10 year horizon im not sure there's a better bet...