Standard Life UK Smaller Companies & Standard Life Property Fund

J

johnkieran

Registered User
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Hi

Looking for a general steer here.

I'm invested in both of these funds and am wondering what the general wisdom is out there in light of Brexit etc.

1) I have a 2 year time frame when I may need to cash a sizeable chunk of my property fund investment.
2) my timeframe for my UK Smaller Companies is longer term (7/9 years).

Should I look to moving these funds elsewhere in light of recent developments.
 
2 years is too short a time horizon to be investing at all if you need the cash.

Beyond that, it's hard to comment without knowing the context (e.g. amounts, scale relative to your overall wealth, information about you, etc).
 
Gordon Gekko said:
2 years is too short a time horizon to be investing at all if you need the cash.

Beyond that, it's hard to comment without knowing the context (e.g. amounts, scale relative to your overall wealth, information about you, etc).
Click to expand...


I'm already invested in both funds and have been for several years.

I've probably decided to move out of UK Smaller Equities to other equity markets as I think global equities generally will outperform UK equities.

And in light of everything, is UK commercial property the place NOT to be in a general sense.

I accept I've given little context but just looking for an informed opinion.
 
I understood that you're already invested...but that's just a sunk cost. If you need the cash in two years, you should liquidate the holding and leave it on deposit.

If these are you're only investments, there's obviously too much of a UK bias. Personally I'd be looking to be more diversified.
 
The Property fund has had a number of pricing adjustments (or fall in value to you and me) and is now locked, so it's not looking too good at present. The value will come back but over how long? You didn't mention what product you are invested in. This is important if the fund is still locked in 2 years. If it is a pension and you reach normal retirement age, you can cash in the value of the property fund. If it is an open ended investment or pension that you wish to draw down early, you can't.

The smaller companies fund offers higher expected returns but you have to take an increased level of risk (risk & return). When the Brexit results came through, the FTSE 100 didn't fall by anywhere near the levels of FTSE 500. Are any of the UK Smaller Companies fund even in the FTSE 500 and what market will they sell to? If they are not exporters, you can expect the value of the companies within the fund to fall more.

Your timeframe is smack bang in the middle of the timeframe of the UK leaving the EU. It's not a good time to be heavy UK when you have such a short time frame.


Steven
www.bluewaterfp.ie
 
Thanks for the reply SBarrett (minus any condescension!).
Appreciated.
Your last sentence probably tells me all I need to know.
 
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