Small pension buy-out bond - fund choice?

[Protocol]

Before I joined an occupational PS pension scheme, I made conts to a Hibernian Open Plan personal pension.

It was started in a branch, and I subsequently switched to a discount broker, as the commission was massive.

It was made paid-up in 2006, and I transferred it to an Irish Life Complete Solutions buy-out bond.

My query is about fund choice

I originally (foolishly) put 50% into each of these funds in 2006, AMC = 0.75% for both, (two transactions a few weeks apart)

(1) Irish Life Active Managed Fund Series P
(2) Irish Life Indexed Irish Equity P

	2006 price	2006 value	2020 price	Change
Irish Life Active Managed Fund Series P	1.366 and 1.400	6376	2.41	72% - not great??
Irish Life Indexed Irish Equity P	1.564 and 1.620	6376

I realised later that I had made a mistake, I suppose a classic mistake of Irish savers, to be overweight in Irish equities

The first fund unit price was 2.41 in 2020, up 72% in 14 years, not great?

The second fund, I found out later it's just 50m!!!! The price fell from 1.62 to 0.59, and I eventually sold in 2019 at 1.40

I switched into a fund called Indexed World Equities.

There are a lot of IL funds:

Fund Prices and Performance | Irish Life

Our factsheets provide general information on the fund as a whole to use as a guide to the structure of your fund.

www.irishlife.ie

I welcome any comments on better fund choices.

• 15-20 years until retirement
• this pension fund forms a small part of wealth
• I will have a main PS pension
• I am willing, and want, 100% equities for long-term growth
• I use a discount broker, so I can't and won't be asking them for fund choices
• I don't really want the hassle of leaving Irish Life

What I really want is a simple cheap passive fund like a world index tracker.

That is why I switched to Indexed World Equities.

Thanks.

 

[AJAM]

Indexed World Equities would be my choice. I'd put 100% of my equity allocation in there.
Very hard to beat the market and difficult to pick and choose between different geographic regions.

 

[Dave Vanian]

What I really want is a simple cheap passive fund like a world index tracker.

That is why I switched to Indexed World Equities.

That's Irish Life's offering in the world index tracker space. It tracks the FTSE World Index, but there's a degree of tracking error that really shouldn't exist in a billion euro fund. Have a look at the fact-sheet for that fund and in particular the performance against the benchmark.

But if you want a world index tracker and you want to stay with Irish Life, you don't have another choice. Consensus Equity is a similar type of fund although not a world index tracker, but that doesn't perform well against its benchmark either.

Irish Life aren't great at index-tracking in my opinion.

 

[Protocol]

Thank you both.

No changes for me to make, so.

I see what you mean about the ILIM fund not quite tracking the index.