My pension fund performance

RobAMerc

hi all,

I've been looking at my financials and see my pension fund has earned me a whopping 3% over the last 3 years - now given what I see the stock market making, I cannot understand how this is so low.

So how does this compare to the market ? I presume my broker just sold me the one that pays him most as opposed to the one thats going to do best for me ?

Apols if my question is stupid - this isnt my bag at all

Thanks
Rob

Saudades

It depends on what risk level your pension fund is invested in.

A general Total World Stock index fund was down almost 10% in 2018, but up 27% in 2019, and is up this year 5%, so it sounds like you are possibly invested at a low risk scale, maybe a high percentage just in bonds or/and cash.

Ask your broker for a breakdown of your portfolio.

RobAMerc

thanks - this is the breakdown

Browney7

RobAMerc wrote: »

thanks - this is the breakdown

Are you paying in regularly or in a lump sum?

The energy fund would be well down with the oil price performance.

Eurozone fund and the dividend fund (value stocks most likely as opposed to growth stocks) have likely missed the recovery driven by big tech

RobAMerc

so a large portion went in a transfer from another fund back 3 years ago and I am now paying into a new fund monthly - this is the breakdown over the 2
thanks

Jim2007

RobAMerc wrote: »

so a large portion went in a transfer from another fund back 3 years ago and I am now paying into a new fund monthly - this is the breakdown over the 2
thanks

All the information you have provided so far is insufficient to draw any tangible. conclusions.

You would need to provide per fund the percentage of the portfolio allocated to each fund at the very least on an annual basis, but preferably on a quarterly basis and confirm that each and every allocation decision was done on the specific institutions of the broker.

Also, what is your age and health profile needs to be considered when reviewing the advice provided.

howamidifferent

5% in equities seems very low to me and likely why the returns are so low.

The J Stands for Jay

Looking at the fund splits, it's not clear that you have any sort of investment strategy. Meet with your advisor and review the strategy. You're likely already paying for their advice through some sort of renewal commission.

As to why your pension isn't giving the same returns as the stick market? It's not invested entirely in the stock market, so it wouldn't give the same returns.

Blackjack

You're not going to get stock market returns with that asset mix - and I'll caveat that by saying you could outperform it on occasion but over the longer term, you more than likely won't.

The Prisma 4 is likely the one that's most if not all of the "multi asset" and that's 60% equity with the rest in Bonds, Cash, Alternatives and Property. You've also got around 20% in Corporate Bonds overall, so if you want a true refection of how this is performing, you need to see what it is being benchmarked against, but it's own factsheet indicates a year to date investment performance of 1.9%.

Talk to your broker, tell them what you want and have him explain the risks to you of making changes now. As Jim2007 has said, your age profile will have a lot to do with this. E.g. if you are in your late 50's or early 60's then the asset mix might be about right, but if you are younger, you may wish to consider a more equity focused strategy which comes with it's own risks.

Blackjack

Kasey_Don wrote: »

I have been paying monthly into a company pension for almost 2 years.

The total put in has been just over 7k and the total value now is 6.8k.

The risk rating is 6 out of 7.

Does this sound right? Now I am up because the company matches but if I was a private person I'd be very disappointed with that return.

A lot will depend in what it's invested into, but that's entirely possible and if the money was in EUR cash, you'd probably be somewhere around the same.
Bear in mind if you're making AVC's you're not taxed on that amount you put in so if you're on the higher rate of tax, each euro invested costs you only 60cents, so you're probably up more than you think, even with that decline in value.

RobAMerc

Jim2007 wrote: »

All the information you have provided so far is insufficient to draw any tangible. conclusions.

You would need to provide per fund the percentage of the portfolio allocated to each fund at the very least on an annual basis, but preferably on a quarterly basis and confirm that each and every allocation decision was done on the specific institutions of the broker.

Also, what is your age and health profile needs to be considered when reviewing the advice provided.

I have no idea what this means or how I would even ask for it ?
would the broker provide it ?

I am in my mid 40's

thanks for the info folks,

Simon201

OP I seem to be in a similar position. Maybe we all are in some small way as this is being blamed on the virus but my projected monthly income from one of my pensions has gone from €181 in 2018 to €123 in the latest statement!

niallers1

Your mix is too conservative. Bond heavy.

It's up to you to understand this and not say it's not your bag.
Your broker will most likely sell you something safe that preserves your capital, something safe.

There is very little money to be made in "safe".


Zurich America's 5* has performed very well over the past few years( doesn't mean it will continue to though)

Your not your bag selection has sorry to say, probably cost you 1000's in lost gains over the past few years.


You should review your selection at least once a year.

Take a look at how each selection has performed, while it doesn't garantee it will continue on that trajectory I personally choose funds that have historically performed well.

If you look at how your selection has performed over the past few years then it shouldn't be a huge surprise that they are performing as they have been.

howamidifferent

Obviously depends on the portfolio mix. Comparing my 2015 statement value to the 2020 statement value, my pension pot doubled over those 5 years. I am making AVC contributions and my employer contributes 8% but its still a good jump. 100% equities by the way.

The Mighty Quinn

howamidifferent wrote: »

Obviously depends on the portfolio mix. Comparing my 2015 statement value to the 2020 statement value, my pension pot doubled over those 5 years. I am making AVC contributions and my employer contributes 8% but its still a good jump. 100% equities by the way.

Out of interest how are you making the comparison? I assume you have been contributing in the intervening 5 years, so are you excluding those contributions from your then v now growth?

howamidifferent

The Mighty Quinn wrote: »

Out of interest how are you making the comparison? I assume you have been contributing in the intervening 5 years, so are you excluding those contributions from your then v now growth?

No I'm simply saying the pot value doubled.