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Pensions, time to get bearish on equity exposure?

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  • 28-07-2014 8:47am
    #1
    buck65
    Closed Accounts Posts: 4,969 ✭✭✭


    As a trustee of a fairly large pension pot I decided to reduce our exposure to equities. The downside of course is that the fund is now in a cautious fund where return is going to be no more than 5% or so but shouldn't fall by more either in a storm.
    Growth has been steady at aprox 12% per annum over the last 4 years and everyone is delighted but I just get the feeling that markets are peaking. What think you all?


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    #2
    Alan152
    Registered Users Posts: 61 ✭✭Alan152


    Hi Buck65

    Interesting post and a topical issue of late. While working in the industry and have listened to so many investment discussions recently it it not a bad move from your point if view. People are saying equities are expensive at present however bonds will most likely have a wobble before equities do in most peoples view. I would be inclined to agree.

    What type of a scheme are you trustee of if you don't mind me asking. Equities have rallied very well as of late so you have banked a nice return on top of the tax relief. People will see the returns on equities as of late and will most likely buy in now at this stage.

    Alan


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    #3
    bridster007
    Registered Users Posts: 417 ✭✭bridster007


    buck65 wrote: »
    As a trustee of a fairly large pension pot I decided to reduce our exposure to equities. The downside of course is that the fund is now in a cautious fund where return is going to be no more than 5% or so but shouldn't fall by more either in a storm.
    Growth has been steady at aprox 12% per annum over the last 4 years and everyone is delighted but I just get the feeling that markets are peaking. What think you all?


    You decided ? Are you the sole Trustee ?
    Have you considered getting a professional investment report that considers the liability profile of the scheme ?


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    #4
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    You made an investment decision affecting the pensions of several people and you're now (after the event) seeking affirmation from a bunch of anonymous amateurs on an internet forum.

    I'm not commenting on whether you made the right decision or not but are you really qualified to be managing a pension fund?


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    #5
    buck65
    Closed Accounts Posts: 4,969 ✭✭✭buck65


    I work with a broker and got advise form the fund managers, but then again I always feel that these people are automatons at times. Just putting it out there to see response here, seeing I went cautious I wouldn't be too alarmed. It is now law that employers are trustees of these funds so no I'm not an expert or qualified apart from trustee treaining which is mostly common sense.

    Also considering our fund had lost 40% when we took it over to being back up nearly 40% in 3 years might suggest that opinions on here could indeed be useful for future decisions!!


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