Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!



Pension: switch mutual fund to tracker
Posted: 16 February 2017 16:49:41(UTC)

Joined: 16/02/2017(UTC)
Posts: 1

Hi all,

I am looking for some thoughts about my pension investments. I currently have two mutual fund pensions of £25k each with two different companies which both are pretty much the same and charge a ‘total’ of 1% (although who knows what they skim off on transaction charges, etc). They have 80% in equity, of this 38% is in UK shares, 20% in US and 17% in Dev Europe. Ideally I would like to switch to the Vanguard 80% LifeStrategy Fund however I am stuck with analyses paralyses. There are two main things stopping me, the high price and CAPE ratio of US shares and the low valuation of the UK pound.

It would kind of feel like buying high and selling low and I would ideally like to wait for a better time however they say that you shouldn’t try to time the market and that there is no ideal time and you may miss out on gains/low charges by waiting.

My latest thought is to keep one fund for 6-12 months and swap the other for a FTSE All Share tracker to take advantage of the low pound with eventually switching both over to the LIfeStrategy when markets and currencies are more favourable. Obviously though I will be less diversified and could be impacted negatively by that.

Posted: 09 March 2017 11:09:53(UTC)

Joined: 07/10/2013(UTC)
Posts: 3

Thanks: 3 times
Was thanked: 3 time(s) in 1 post(s)
I'm in a similar position having transferred my high charging pension fund to my SIPP. I have similar views and have started drip feeding into Vanguard Lifestrategy 80%. I'm looking at something fairly defensive like Capital gearing trust to add and possibly switch into global investment trusts (maybe SMT or Foreign and Colonial) and more Vanguard, if/when there's dip in the markets. nervous about being heavily in cash for too long!
+ Reply to discussion


Other markets