Was just looking for some opinions on the asset allocation of a pension fund.
I am 30 and have been paying into my company pension fund for the last 3 years. In the last 6 months have been taking a more active interest in my pension in relation to contributions, charges and fund make up. When I asked for a breakdown of the asset allocation I was sent the following,
Irish Equities 18.1%
UK Equities 6.8%
US Equities 12.9%
European Equities 18.8%
Japanese 3.3%
Pacific Basin 6.8%
Equity Total 66.8%
Bond 19.5%
Property 8.5%
Cash 5.2%
This seem low on equities so I queried this with the investment manager and received the following response,
We would agree that heavier equity content may be warranted for an individual with 30 years to retirement but that increased exposure does come at the price of increased risk. The Focused Managed Fund will progressively move from an overweight position in equities to a underweight one but will not move from an absolute position in equities to an absolute position in cash or bonds. At all times they will maintain some degree of diversification between asset classes. The Focused Managed Fund is designed to offer a gradualist approach with a diversified approach, we do offer a more complete range of funds to facilitate those who wish to actively manage their pension assets in a more aggressive fashion
So I guess my query is weather I should be looking to go into a higher equity based fund. With at least 30 years to retirement, and an attitude of medium to high risk (for long term investments) I feel that 67% is on the conservative side.
Any thoughts ?
I am 30 and have been paying into my company pension fund for the last 3 years. In the last 6 months have been taking a more active interest in my pension in relation to contributions, charges and fund make up. When I asked for a breakdown of the asset allocation I was sent the following,
Irish Equities 18.1%
UK Equities 6.8%
US Equities 12.9%
European Equities 18.8%
Japanese 3.3%
Pacific Basin 6.8%
Equity Total 66.8%
Bond 19.5%
Property 8.5%
Cash 5.2%
This seem low on equities so I queried this with the investment manager and received the following response,
We would agree that heavier equity content may be warranted for an individual with 30 years to retirement but that increased exposure does come at the price of increased risk. The Focused Managed Fund will progressively move from an overweight position in equities to a underweight one but will not move from an absolute position in equities to an absolute position in cash or bonds. At all times they will maintain some degree of diversification between asset classes. The Focused Managed Fund is designed to offer a gradualist approach with a diversified approach, we do offer a more complete range of funds to facilitate those who wish to actively manage their pension assets in a more aggressive fashion
So I guess my query is weather I should be looking to go into a higher equity based fund. With at least 30 years to retirement, and an attitude of medium to high risk (for long term investments) I feel that 67% is on the conservative side.
Any thoughts ?