/ 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 .•
trustnetdirect . com 27
/ 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
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