Trustnet Magazine Issue 21 September 2016 - Page 29

/ PLATFORMS / have exposure to growth , wherever it happens . Geographical and sector diversification should be high on your list of priorities for your portfolio going forward .
A very useful tool on Trustnet Direct shows you how well diversified your portfolio is and highlights overweight positions ( by asset class , region and sector ). You can view it here .
ACTIVE MANAGEMENT Passive or tracker funds – meaning those that aim to replicate the performance of a particular index , such as the FTSE 100 – have done well over the last year , but can they deal with the uncertain markets we face ? My opinion is that a real fund manager making active asset allocation decisions on behalf of investors is a better bet than simply aiming to track an index .
Personally , I keep a mix of both active and passive funds in my retirement portfolio , but I will definitely focus on the former in the future .
I am also sticking to the managers that have performed consistently
10 % 8 % 6 % 4 % 2 % 0 % -2% -4% -6% -8 %
23 Jun 28
Source : FE Analytics

Your retirement is not the end of your pension strategy – merely a halfway point

over the long term . Look out for FE Alpha Managers in particular as this title is awarded for consistency , rather than flash-in-the-pan shorter term performance .
GET MORE INVOLVED , BUT STICK TO A STRATEGY
If you are reading this , you are likely to be a savvy investor with a plan ( unlike the vast majority of the UK population , who retire with less than £ 50,000 in their pension pot ).
I can ’ t stress enough that having a plan and sticking to it is important and seeing that strategy come to fruition over the longer term will put your mind at ease . Using portfolios and portfolio planners really helps to visualise how your
PERFORMANCE OF INDEX SINCE 23 JUNE
FTSE All Share ( 6.75 %)
01 Jul 06 11 14 19 22 27
01 Aug 04 09 12 17 22 25 30 investments are doing and again the Trustnet Direct portfolio can help . There are a range of tools available that can highlight poor performers , help with asset allocation decisions , show you news affecting your investments and a goal tracker to see if you ’ re on track with your targets . Have a look for yourself here .
However , I ’ d counsel against “ daytrading ” your investment portfolio . Don ’ t sell and buy funds on a whim , but take a longer term view . Just because a fund is experiencing a short-term dip in performance , this doesn ’ t mean it won ’ t be a top performer over the long term . We ’ re in for a volatile ride over the next few years , so avoid knee-jerk reactions when it comes to your portfolio .
THINK LONG-TERM It is vital when drawing up your plan that you take a long term view and remember that your retirement day is not the end of your pension strategy – merely a halfway point . With pension freedoms in place , you can continue to increase the value of your portfolio well into retirement . With uncertain times ahead , the longer your retirement , the more time you will have to iron out the economic bumps we will encounter .
In the most recent issue of Trustnet Magazine , we discussed a longer term strategy in which you enter retirement with a higher risk portfolio and a cash buffer , offering you greater growth potential and spare money to use in down markets .
Giving up on your investments at retirement could rob you of a further 20 years of growth and if you ’ re about to stop working , you can ride out the Brexit storm by stretching out your time horizon .•
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/ PLATFORMS / have exposure to growth, wherever it happens. Geographical and sector diversification should be high on your list of priorities for your portfolio going forward. A very useful tool on Trustnet Direct shows you how well diversified your portfolio is and highlights overweight positions (by asset class, region and sector). You can view it here. ACTIVE MANAGEMENT Passive or tracker funds – meaning those that aim to replicate the performance of a particular index, such as the FTSE 100 – have done well over the last year, but can they deal with the uncertain markets we face? My opinion is that a real fund manager making active asset allocation decisions on behalf of investors is a better bet than simply aiming to track an index. Personally, I keep a mix of both active and passive funds in my retirement portfolio, but I will definitely focus on the former in the future. I am also sticking to the managers that have performed consistently Your retirement is not the end of your pension strategy – merely a halfway point over the long term. Look out for FE Alpha Managers in particular as this title is awarded for consistency, rather than flash-in-the-pan shorter term performance. GET MORE INVOLVED, BUT STICK TO A STRATEGY If you are reading this, you are likely to be a savvy investor with a չѡمЁɥ)ѡU,ձѥݡɕѥɔ)ݥѠ́ѡ ѡ)ͥФ)$eЁɕ́՝ѡЁ٥)ѥѼЁ́х)͕ѡЁɅѕ䁍)Ѽեѥٕȁѡȁѕɴ)ݥЁȁЁ͔Uͥ)љ́љ)ɕ䁡́Ѽ٥Յ͔܁()AI=I59 =%9`M%9 ́)U9(()QMMɔظԔ(((ؔ(Д(Ȕ((Ȕ(Д(ؔ()Mɍѥ()ѹёɕй((((((((((((((((ā՜((((((((((((((ā)հ((((́)ո((()ٕѵ́ɔ)ѡQѹЁɕЁљ)QɔɔɅ)ѽ́مѡЁ)ȁəɵ̰ݥѠ͕)ѥ̰ͥ͡܁)́ѥȁٕѵ)ɅȁѼ͕׊eɔ)ɅݥѠȁхɝ̸!ٔ)ȁ͕ɔ)!ݕٕȰ'eչ͕ЃqɅtȁٕѵЁљ)eЁ͕䁙չ́ݡ)Ёхȁѕɴ٥ܸ))͔չ́ɥ)͡еѕɴəɵ)ѡ́ͻeЁЁݽeЁѽ)əɵȁٕȁѡѕɴ]eɔ)ȁٽѥɥٕȁѡЁ)啅̰ͼٽɬɕѥ)ݡЁ́Ѽȁљ()Q!%9,1=9QI4()%Ё́٥хݡɅݥ)ѡЁԁхѕɴ٥)ɕȁѡЁȁɕѥɕ)䁥́Ёѡȁͥ)Ʌѕ䃊Lɕ䁄݅и)]Ѡͥɕ́)ԁѥՔѼɕ͔ѡ)مՔȁљݕѼ)ɕѥɕи]Ѡչхѥ)ѡȁȁɕѥɕа)ѡɔѥԁݥٔѼɽ)Ёѡյ́ݔݥ)չѕȸ)%ѡЁɕЁՔ)QѹЁ5饹ݔ͍͕)ȁѕɴɅѕ䁥ݡ)ѕȁɕѥɕЁݥѠȁɥͬ)љ͠ՙȰɥ)ԁɕѕȁɽѠѕѥ)ɔѼ͔ݸ)ɭ̸)٥ȁٕѵ)ЁɕѥɕЁձɽԁ)ѡȀ啅́ɽѠ)׊eɔЁѼѽݽɭ)ɥЁѡ ɕЁѽɴ)ɕэЁȁѥɥ齸(((0