Paul O Mahoney
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I get that and we won't speculate but my question is really about what has happened and what is happening now and are fund managers adjusting for this.The consensus in the market is mixed - some think it will go down more, others think it will go up
In truth, no one knows
Fund managers always adjust for events, and there is always chatter but in general trying to time markets in the short term is s a mug's game.I get that and we won't speculate but my question is really about what has happened and what is happening now and are fund managers adjusting for this.
I maybe asking for the impossible, but I would think there is " chatter ".
Yeah, but I was always of the opinion that the job of Fund Managers was actively managing funds and adjusting for negative movements in the value of those funds and reduce volatility?The value of a pension fund is the value of the underlying investments
In the case of listed investments, then the value is the market value and will go up and down as the market does
In the case of unlisted investments, then the fund manager has to take a view on the value of the investment - his view is obviously adjusted as the markets go up and down. The valuation has to pass audit committees, auditors and regulators
Other than that, I am not sure what exactly you are looking for
Yes, in theory. But even if Fund Managers thought that markets were likely to come under pressure, none of them would sell everything and move to cash. Changes in the asset mix will tend to be at the margin, reducing certain Equity holdings and perhaps moving to other potentially less volatile asset classes. But ultimately, Fund Managers don’t want to be significantly out of sync with what their competitors are doing (no one wants to be bottom of the league table).Yeah, but I was always of the opinion that the job of Fund Managers was actively managing funds and adjusting for negative movements in the value of those funds and reduce volatility?
Perhaps I'm not understanding the role of a Fund Manager.
Oh I know that and really wasn't saying that decisions for the long term should be based on the last months, but I was asking if others like yourself have noticed the same drop,, yes, and if it was thought that the factors I listed were going to change.It's all relative. 5 months is a very short time in pension value terms.
For example, my pension ( no contributions made) over the last few years looks as follows:
Last 5 months -5%
Last 12 months +26%
Last 24 months +19%
Last 5 years + 27%
Overall, I'm more than happy with the performance.
Agreed and her pension is already " lifestyling" so 50% of her contributions since last August are now going into 2 more less risky funds, although she has always been in moderate risk funds.A reduction of 5 or 6% is not bad.
I'm largely exposed to tech and equities and my pension is down over 10%.
Im in it for the long haul so only time I see this sort of reduction as a problem is if you were retiring but this is why as you approach retirement general concensus is that you move into less risky funds and cash.
I’m sure I’ve seen it posted here before that retirement shouldn’t mean a rush to cash/bonds, especially in a high inflation environment.
Yes Paul, my funds would be overall down this amount. Some by lesser margins, others by higher, but overall your %'age is near enough for me. As I'm in the nearly 70 group I should be worried but am up enough over the past 7 years to stick with it for now and for the next few years at least.Oh I know that and really wasn't saying that decisions for the long term should be based on the last months, but I was asking if others like yourself have noticed the same drop,, yes, and if it was thought that the factors I listed were going to change.
That's what its called in the pension plan, and that's why I used it. The pension contributions are now split over 3 funds one of which is cash.......and automatically started when my wife reach 57Correct. "Lifestyling" makes no sense at all, but to some people it has the ring of some carefully constructed plan.
Brendan
Thanks.Assuming you can invest in an ARF at retirement you could theoretically be invested in the markets for another 30+ years.
I’m sure I’ve seen it posted here before that retirement shouldn’t mean a rush to cash/bonds, especially in a high inflation environment.
Re fund managers, my (albeit limited) experience is that they are like sheep and following the pack (or should that be flock!).
Haven't checked but no reason to think all pensions haven't taken a hit in the last few months.Oh I know that and really wasn't saying that decisions for the long term should be based on the last months, but I was asking if others like yourself have noticed the same drop,, yes, and if it was thought that the factors I listed were going to change.
Is it though? Dow is down 10.3% Ftse up 2.5% and Euro 50 down about 12% since Jan.Haven't checked but no reason to think all pensions haven't taken a hit in the last few months.
Are the factors going to change? Definitely. And something else will come up. There's always something happening. It's just noise.
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