Managed funds - Defined contribution pension

P

Paz amor

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I have a defintied contribution pension & have been given the choice where to put my pension. I am am choosing managed funds.

Can you explain what's the advantage, if any of segregated managed funds over unitised managed funds?

Also, am given choice of passive or active - is there any point in choosing active?
 
Are you being forced to switch the DB fund and, if so, why? In many cases a DB fund is a better bet than a defined contribution fund so if you have a choice in the matter you should make sure that you weigh up all the pros and cons - ideally having sought independent, professional advice.

What do you mean by "segregated managed funds"? I'm not familiar with the term.

There is no simple answer to the active versus passive question. There are lots of discussions of this issue on AAM and elsewhere which might give you food for thought when choosing between these investment strategies.
 
No mention of DB funds in the original query?????
 
ollyk1 said:
Segregated managed fund would probably mean that all DC monies for all members are invested in one fund with the investment manager and the number of units in repect of each member tracked by the Trustees or their agent (pensions advisor).
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Is this different to a buy out bond?
 
A buy out bond is a policy provided for someone who has left a pension scheme, but wants to transfer thier benefits out of the former scheme, but not to thier new employer or of they no access to another scheme. in effect it gives them control over the investment of thier deferred benefits i.e. they can choose the insurance company and fund. However, BoBs (or Personal Retirement Bonds) can only be used once for the initial investment of the transfer value and no further monies can be added to it.
 
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