Regional and Currency Diversification

T

TRS30

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Hi all

Having read through various post (SPC100 excellent PRSA post deserves a mention) and done my own research, I am looking to make some changes to my pension funds. Am thinking of going for index-trackers along the following lines

North America 38%
Europe(ex UK & Ire) 27%
UK 10%
Japan 10%
Asia Pacific 5%
Irish 5%
Biotech 5%

I am 30 and looking for high risk/high reward over the long term. Am putting in €1,000 a month. I feel this gives me a good mix of regions and currencies. The Biotech I am already in and like it so would like to keep a small % in there.

Just wondering what peoples though were on the above.
 
Well I think you must have a HUGE income if you can contributre 1000 pm to pension at age 30.

I contribute 150 pm.
 
Hi markowitzman

Have read most of your recent posts on here in relation to etf's and various different other issues. You obviously know what you are talking about.

Unfortuanly the company scheme that i am in has limited funds. The index-trackers that mentioned above plus a few managed fund, property, bonds, cash etc. The closest to etf's would be specialist equity funds, Global Telecoms, Global Tech and Euro Financials.

I have considered moving my AVC's to an external PRSA but have still not seen any that offer etf's (are these even available in PRSA's?) to diversify into things like commodities, engery, pharma etc.....

Being limited to the above do you feel that my splits are right ?
 
Hi SPC100

Thanks for the reply.

I take onboard your points but would have the following concern

The Irish index is very small in world terms and having 10% holding is quite high as just one stock could greatly effect it, i.e. Elan

The Pacific Basin fund is very diverse so would certain be leaning towards increasing that from the US holding.

Am using Hibernian Cear Plan, 0.75% amc and €4.44 monthly policy fee.
 
TRS30
I am absolutely no expert on pension funds as I have self directed so generally go for etfs.
Allocation looks ok.
The only change I could mention is to try and follow DJEurostoxx 50 as this will get uk and europe exposure in one product. However the eurostoxx 50 is large caps only. Re Usa I would try and follow wiltshire 5000 or russell rather than limiting to dow or nasdaq or sp500 as you get small cap exposure as well.
Is your commission charge the same if you do monthly payments or single premiums?
 
There's an overlap between this thread and the end of the one started by SPC100 on pension products. I've continued my contributions on the other thread, for continuity. Perhaps some moderator could do a bit of surgery and bring this thread and the end of the other together? It's really the same discussion.
 
Darag

Your quite correct, didnt want to be rude and add my query on to SPC100 one.

Will post on the other thread.
 
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