SIPP's and tracker funds

[Halitosis]

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)

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.

[Montello]

... but the better question is where the next growth will occur.

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

[Halitosis]

Ah ... if you know please advise as that is the big question ... usually not the sector that has just enjoyed a big melt up ...

Ha - I have as good an idea as the industry experts - i.e. none.

My (often proved poor) instinct suggests the US can't continue rising at the rate it has/is, so a well diversified global portfolio.

[trident-7]

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.

I'm probably overexposed to India a bit...but sometimes you have to go with your gut.....surely it can't be as arse clenching as Bitcoin.

[robinsongreen68]

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...

[Montello]

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

[robinsongreen68]

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...

[Montello]

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...

True, he also says buy low sell high ...

[uwtc]

I prefer 'buy high, sell higher'. Cheap usually remains cheap for much longer than anyone expects and you just pay opportunity cost.