[chris05]

Bit of an indulgent middle class thread I’m afraid but if anyone has any useful comments it would be much appreciated. I don’t seem to be able to access the old thread on stocks and shares which had some good info on it but would appreciate some advice on a similar issue. 

As a University lecturer I am part of the TPS pension scheme and so have the option of also saving in TAVC’s which seem to be a sensible way of putting away a little extra as they are flexible and tax free. I will hopefully be paying in a small amount monthly but have quite a number of years to do so (I am currently 32) so it should be useful if I have the chance to retire early etc. I can choose from the following funds (all with Prudential): http://www.pru.co.uk/pdf/TAVK10033.pdf (page 12).

Based on the performance and risk factors I am tempted to go for the International Equity Fund (http://www.trustnet.com/Factsheets/Factsheet.aspx?univ=P&fundCode=PUPMI&pagetype=overview). It hasn’t done as well as some of the others (e.g. http://www.trustnet.com/Factsheets/Factsheet.aspx?univ=P&fundCode=PUF25&pagetype=overview) but I like the fact that it invests in worldwide markets as this seems to spread the risk.

I am new to looking at these sheets and comparing funds etc so any comments or thoughts on these options would be much appreciated (obviously it will not be taken as official financial advice unless it’s from Lagers in which case I anticipate a hefty bill).

Cheers

Chris

[Rocksteady]

The fund you're looking at is basically a world index tracker under the guise of active management (alpha 1.68 slightly beats market, beta 1.03 slightly more volatile). Its annual charge is 65bps which is not too bad, although a true tracker would be 10bps cheaper and deliver very similar returns. On the other hand, this doesn't seem to be an available option to you in your selection choice other than UK index which wouldn't deliver same diversification.

It's very heavily weighted to UK and North American equities. In the current market that's not necessarily a bad thing but could expose you if the market turned. Having said that, not sure the other funds you have available to you would perform in a non-correlated way (apart from the bonds, but they're not looking too healthy at the moment).

I don't think the fund you're looking at is a bad choice - in the range you have available to you I'd probably split between that one, the UK equities index tracker, and the default fund.

Not financial advice etc. Hope it performs well for you.

[chris05]

Many thanks Rocksteady. Appreciate you taking the time to look and answer.that confirms what I was thinking but wanted to check there wasn't some massive disadvantage to it that I had missed.

Cheers