PRSA-Switching Funds?

Ginger83

Hi, I started a pension PRSA earlier in the year and have just logged in to view its details.

There are 3 different types of funds!
1.Consensus Fund Series S- which I am in but I've noticed this fund has dropped by 35% in the last 12months and dropped by 26% in the last 3years and 0.5% last 5years.

2.Cash Fund Series S-this fund has grown by almost 4% in last 12months and over 9% in last 3years and 12% last 5years.

3.Pension Protected Fund Series S- this fund has grown by 8.3% last 12months, 4.2% last 3years and 27.5% last 5years.

Q?- Could anyone explain to me why the guy who arranged my pension put my payments into a fund that has shown constant losses in the last 5 years?
Q?- Is it recommended or can I switch from one fund to another?

For anyone looking for other information I am 25years old and pay approx 360euro per month in the pension.

GerardKeating

Ginger83 wrote: »

Hi, I started a pension PRSA earlier in the year and have just logged in to view its details.

There are 3 different types of funds!
1.Consensus Fund Series S- which I am in but I've noticed this fund has dropped by 35% in the last 12months and dropped by 26% in the last 3years and 0.5% last 5years.

2.Cash Fund Series S-this fund has grown by almost 4% in last 12months and over 9% in last 3years and 12% last 5years.

3.Pension Protected Fund Series S- this fund has grown by 8.3% last 12months, 4.2% last 3years and 27.5% last 5years.

Q?- Could anyone explain to me why the guy who arranged my pension put my payments into a fund that has shown constant losses in the last 5 years?
Q?- Is it recommended or can I switch from one fund to another?

For anyone looking for other information I am 25years old and pay approx 360euro per month in the pension.

In the long term (40+ years) the first type on fund would be expected to perform best, if you look at the returns for the 80/90 this should be the case, but they very bad the past few years..

kaiser sauze

Consensus Fund is the default, unless you had specified a different fund at the time of starting the PRSA, you automatically go into this one. It was not necessarily your agent that picked this fund for you. You need to ask him whether he picked it, allowed the default to kick in, or whether he'll claim you instructed him to.

You should have been shown these options at the time you started the policy.

You can change into any of the other funds available at any time, but check whether charges will apply.

sofireland

How long do you have til retirement?
Past performance figures are skewed out due to the last two years negative performance.

Ginger83

No no, I'm only really starting this pension, I just wondered from what I viewed online why mine was put into the worst performing fund! Maybe through time it will pick up

Probably because, as kaiser says, you did not choose the fund and the one you are in is the 'default'.

kaiser sauze

Ginger83 wrote: »

No no, I'm only really starting this pension, I just wondered from what I viewed online why mine was put into the worst performing fund! Maybe through time it will pick up

This is likely, but as the caveat always says, 'past performance is not a definitive guide to future returns'!

Don't panic, your pension is a long-term investment. This is the first, of many, fluctuations in its value.

broker2008

And the longer this fluctuation goes on, the cheaper the units you will be buying !

dizzybridie

There's no charge to switch your funds w co your're with and you can do it online. You're getting nearly 1.5 times the units at the moment as you would've when things were doing well in stock market. If I were you I'd get outta those pension protected and cash funds. You only go into them if you're near retirement which you're clearly not. Long term plan so don't be annoying yourself checking it now while things are down.