Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

UK / Global fund split question

TheMotorcycleBoy
Lemon Quarter
Posts: 3245
Joined: March 7th, 2018, 8:14 pm
Has thanked: 2222 times
Been thanked: 587 times

UK / Global fund split question

#179975

Postby TheMotorcycleBoy » November 13th, 2018, 1:10 pm

Hi everyone,

I'm looking into tweaking the fund allocations in my works DC fund, and I'm trying to figure out some of the terminology that I'm seeing.

Here goes, question time: When you see two figures e.g. 70/30, 60/40 are the numbers used as a measure of regional diversification?

i.e. with the first number being the % in UK assets, and the second one being the number in global ones?

e.g. from my works Fidelity funds list:

FIDELITY BLACKROCK GLOBAL EQUITY 70/30 FUND - CLASS 2
This fund invests primarily in equities, both in the UK and overseas markets. The fund has
approximately 70% invested in the shares of UK companies. The remaining 30% is invested in
overseas companies according to average pension fund weightings. The fund aims to provide
returns consistent with the markets in which it invests. The Fidelity fund invests in the underlying fund
through a reinsurance policy with BlackRock Life Limited.


FIDELITY GLOBAL EQUITY 60/40 PENSIONS FUND - CLASS 2
Composite benchmark is based on the FTSE indices for the following
regions: 60% UK, 13.3% US, 13.3% Europe ex UK, 8.9% Japan, 4.5% Pacific ex Japan, India and
Pakistan (prior to 01/10/2000, Pacific ex Japan). Performance of the FTSE All Share Index is
calculated on a total return basis with income reinvested. Performance of the individual FTSE
regional indices is calculated on a total return basis with gross income reinvested. Source: Mellon
Analytical Solutions to 31/03/2004. Then 60% FTSE All Share, 13.3% FTSE W USA, 13.3% FTSE W
Europe ex UK, 6.8% FTSE W Japan, 4.4% FTSE AW Dev Asia Pacific ex Japan to 31/12/06 then MSCI
Pacific ex Japan GDR, 2.2% MSCI Global Emerging Markets Free to 30/06/09. Then 60% FTSE All
Share, 13.3% S&P 500, 13.3% MSCI Europe ex UK, 6.8% Topix, 4.4% MSCI Pacific ex Japan GDR, 2.2%
MSCI Emerging Markets GDR.


many thanks
Matt

argoal
2 Lemon pips
Posts: 129
Joined: November 4th, 2016, 10:51 am
Has thanked: 19 times
Been thanked: 67 times

Re: UK / Global fund split question

#179996

Postby argoal » November 13th, 2018, 2:54 pm

TheMotorcycleBoy wrote:Hi everyone,

I'm looking into tweaking the fund allocations in my works DC fund, and I'm trying to figure out some of the terminology that I'm seeing.

Here goes, question time: When you see two figures e.g. 70/30, 60/40 are the numbers used as a measure of regional diversification?

i.e. with the first number being the % in UK assets, and the second one being the number in global ones?


In the case of those two particular funds it is exactly that.

However, it is at least as usual for a 60/40 fund to describe mix of shares and bonds in the fund. This is especially true if you are looking at something called a 'cautious' or 'balanced' fund that are common in pensions.

TheMotorcycleBoy
Lemon Quarter
Posts: 3245
Joined: March 7th, 2018, 8:14 pm
Has thanked: 2222 times
Been thanked: 587 times

Re: UK / Global fund split question

#180032

Postby TheMotorcycleBoy » November 13th, 2018, 4:55 pm

argoal wrote:
TheMotorcycleBoy wrote:Hi everyone,

I'm looking into tweaking the fund allocations in my works DC fund, and I'm trying to figure out some of the terminology that I'm seeing.

Here goes, question time: When you see two figures e.g. 70/30, 60/40 are the numbers used as a measure of regional diversification?

i.e. with the first number being the % in UK assets, and the second one being the number in global ones?


In the case of those two particular funds it is exactly that.

However, it is at least as usual for a 60/40 fund to describe mix of shares and bonds in the fund. This is especially true if you are looking at something called a 'cautious' or 'balanced' fund that are common in pensions.

Thanks for that. Yes I see - we could also have a shares/bond splits too - thanks for the warning.

Matt


Return to “Pensions - Practical Problems”

Who is online

Users browsing this forum: No registered users and 6 guests