How can the trustees get away with such a poor fund offering?
The "Here listen, we're better at picking some shares, but still do it passively, and it's totally not us trying to hide our inability to replicate the index" fund.I'm amused by one of the funds being named the "Quality Equity" fund. What does that say about the other equity funds in the range? Should they be renamed? The Also-Ran Equity fund? The Rubbish Equity fund? The Inferior Equity Fund?
I much prefer a selection with a small number of excellent funds. Rather than a large number of crap funds!How can the trustees get away with such a poor fund offering?
"Quality Equity" refers to one of the well known factors that modern portfolio theory has shown outperforms.I'm amused by one of the funds being named the "Quality Equity" fund. What does that say about the other equity funds in the range? Should they be renamed? The Also-Ran Equity fund? The Rubbish Equity fund? The Inferior Equity Fund?
The Quality index fund is a passive fund and follows an index.The "Here listen, we're better at picking some shares, but still do it passively, and it's totally not us trying to hide our inability to replicate the index" fund.
It's a poor curation of funds. What's a person to do if they want an 80/20 passive equity/bond investment split?I much prefer a selection with a small number of excellent funds. Rather than a large number of crap funds!
Speaking from experience, when I was young my first job pension fund offered a myriad of choices, all with high fees. Not knowing what I was doing I spread my choice among 6 or so funds. Only 1 of them performed any way decently.
Now I do Know what I'm doing, I still think the right thing for a pension provider to do is to curate the offered funds to low cost good ones, instead of confusing (the majority of people who know nothing about funds) with lots of choice.
"Quality Equity" refers to one of the well known factors that modern portfolio theory has shown outperforms.
The Factors being
Size,
Value
Quality
Momentum
Low Volatility
Specifically Quality: Quality factors focus on the financial health and stability of companies. High-quality companies typically exhibit strong profitability, low debt levels, consistent earnings growth, and high operating efficiency and hence give better risk adjusted returns.
Note its risk adjusted returns not straight returns.
So the Quality Equity fund is a great choice for someone who wants market-like returns with a slightly smoother ride.
FYI I have a portion of my pension invested in the Quality Equity fund
Not fully sure of the charges that apply to us with APT (through Unio), but like yours, the funds on offer are severely limited and also somewhat different to yours. I'm in Irish Life Navigate World Equity Fund S2.Fees for all the funds.
View attachment 8643
They told me that everyone in the Master Trust pays the same fees (not sure if that is true or not).
We have less than 30 members and less than 4M in assets.
Thanks. I just think that using the word "Quality" in a fund name is odd from a marketing perspective as it could be interpreted that the other equity funds are therefore "Not Quality".
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