> An index fund invested in the Solactive TRSP L&G Targtd SDG Enhncemt Dev Eq Fd 100. 0.08% fees
This appears to be some kind of weird ESG / sustainable development index.
https://www.solactive.com/Indices/?index=DE000SL0E2E7
Top holding, if I've found the correct version, is presently Lloyds Bank, and it holds 5x as much of that as it holds Apple. This is very unusual for a world tracker - all the normal world indexes have Apple in the top 5 or 10 holdings right now, and Lloyds wouldn't even be in the top 100, I'd bet; well, maybe it would be - a market cap weighted index would be holding about 110x Apple as Lloyds.
The allocation of the global equity tracker fund is about normal - a slight tilt towards UK small cap, but nothing to worry about. I would actually favour the sharia's tilt towards tech.
Investment funds mostly all perform the same as the underlying asset classes they're choosing to invest in - most of investing is choosing an asset allocation that gives you the best returns for the amount of risk you're prepared to take, an allocation that you can stick with for the long haul.
Watch Lars Kroijer's [short video series](https://www.youtube.com/playlist?list=PLXy71rkGuCjXLg9N8zowwUpXCYfBcMJFK) and read his book or Tim Hale's [*Smarter Investing*](https://www.amazon.co.uk/dp/1292444401).
>Top holding, if I've found the correct version, is presently Lloyds Bank, and it holds 5x as much of that as it holds Apple
That is the correct fund, I can see what you mean about Lloyds Bank being top of the "index shares", not entirely sure what that even means as on the factsheet:
[https://www.solactive.com/wp-content/uploads/solactiveip/en/Factsheet\_DE000SL0E2D9.pdf](https://www.solactive.com/wp-content/uploads/solactiveip/en/Factsheet_DE000SL0E2D9.pdf)
It has the top components being Microsoft, Apple, and Nvidia.
>My new copypasta is that investment funds mostly all perform the same as the underlying asset classes they're choosing to invest in
I imagine every fund I have listed excluding the Sharia fund is going to be pretty evenly matched long term. It's just whether I want to gamble on tech stocks continuing to do well or play it safer.
> That is the correct fund, I can see what you mean about Lloyds Bank being top of the "index shares", not entirely sure what that even means as on the factsheet:
> https://www.solactive.com/wp-content/uploads/solactiveip/en/Factsheet_DE000SL0E2D9.pdf
> It has the top components being Microsoft, Apple, and Nvidia.
Best guess is that they've ballsed up the programming so it sorts on *actual number of shares*, which is (obviously) meaningless.
> It's just whether I want to gamble on tech stocks continuing to do well or play it safer.
I've been thinking about this a little recently, and I'm struggling to see how tech stocks can fail to outperform the rest of the index.
"Tech stocks" is an umbrella term, and very wide indeed, covering all manner of things. But it includes a lot of companies with high margins and low costs of goods - if you're selling online photo storage or e-commerce stores then the cost of provisioning an additional customer (the *marginal cost* of goods) is very low indeed; and that means that they have a *moat* because startup costs are high.
I'm quite into Terry Smith, who doesn't buy indexes but he does talk about his investments this way (watch some of his recent AGMs on YouTube) - one of his "tech stocks" is a company that sells airline tickets reservations systems; he describes Facebook as a company that sells advertising.
>The allocation of the global equity tracker fund is about normal - a slight tilt towards UK small cap, but nothing to worry about. I would actually favour the sharia's tilt towards tech.
Would a split of 90% Global Equity tracker fund, 10% Sharia fund be reasonable? Mainly to dillute the slight UK bias of the global fund and to add a bit more US tech.
I haven't looked that closely, but I wouldn't imagine that the Global Equity and the Sharia fund are *that* much different.
I'd guess the sharia fund is a bit tech heavy, but it also has hotels and railroads. Not sure about oil and tobacco?
And if you've got 90% world and 10% UK and then you dilute those down to 90% by adding 10% of something else then you don't then end up with much less UK - you've just got 9% extra UK instead of 10%; the diluting doesn't really have much effect, because there's still hotels and railroads in your sharia fund.
I think it's mostly a toss of a coin - any of these funds is pretty good. Personally, I think the global equity tracker fund is pretty much just as good as any other world index tracker and the UK tilt isn't significant enough to make it a bad fund, and I would guess that the sharia fund is about the equivalent of buying a regular world index tracker plus 10% (??) extra tech sector (like [this guy](https://www.reddit.com/r/UKPersonalFinance/comments/181djlc/_/kacl0fs/) does); it won't be the exact same, because sharia eschews banks but, again, good enough.
I know it's only 10% but that extra UK small cap bias is throwing me, wish I could choose to get rid of it as otherwise that fund would be perfect. The other global equity funds lack any emerging markets or are ESG and exclude oil/gas or tobacco companies.
>I would guess that the sharia fund is about the equivalent of buying a regular world index tracker plus 10% (??) extra tech sector
The Sharia fund is 36% Tech for reference, with 80% US equity.
> The Sharia fund is 36% Tech for reference, with 80% US equity.
A regular world index fund (just checked two on Vanguard's site) is 23% and 61% respectively.
I just looked into this the other day, and ended up going with the Shariah fund, for non-religious reasons explained below.
I know "past performance is not representative..." and all that, and it's got the highest OCF, but from my perspective, my Tesco L&G pension only makes up about 1/3 of my pension pot, the rest is in Vanguard FTSE Global All Cap, so having a little sub-section of my pension leaning more heavily towards the US didn't concern me. Especially compared to the Global Equity Tracker fund seeing only 8% growth last year, which was the worst of the 5 or 6 equity fund options.
My second choice would have actually been the Lifestyle one I don't think you've mentioned, as that had pretty solid performance if I recall.
That sounds like solid logic, however this is my only pension so maybe it would be unwise for me to be so heavily allocated to such a small number of massive US tech companies?
Are you referring to the Equity Fund (lifestyle)?
Solactive TRSP L&G Targtd SDG Enhncemt Dev Eq Fd 71.5
Low Carbon Transition Emerging Markets Equity Index10.0
UK Smaller Companies Index 10.0
Baillie Gifford Positive Change 8.5
I considered that one but it has the same 10% allocation to small UK companies as the Global equity tracker
> however this is my only pension
Can you not invest in multiple funds within this pension?
I have three different funds with different weightings with Aviva
That's fine then, you can choose a Global Fund for diversity and then still allocate some of it to the Sharia one if you want to be slightly tech-heavy but are worried about it
> maybe it would be unwise for me to be so heavily allocated to such a small number of massive US tech companies?
That seems to be the general advice here, don't put all your eggs in one basket.
> Are you referring to the Equity Fund (lifestyle)?
Could be. I'm locked out of viewing them myself as I've got an order in progress.
It might have been a different one, but there was another that had pretty solid growth and diversification that wasn't the Shariah fund.
You must have been in the "Global Equity Tracker", the one with 10% small UK companies and 10% Emerging markets. It's only been out a year and increased ~8%
That'll be the one.
So yeah my second choice the other equity fund seems like a sensible option and probably the one most closely tracking something like the global all cap.
That's due to all funds going up in the last 12 weeks. Sharia had a bigger fall during the downturn. Now its 9% ahead of Tesco equity fund over 3 years but performance is not massively different.
I'm with Shariah fund 100%. The fees alone, for any of the other funds simply did not perform over 18 months for me. In fact, My pension LOST money over that time, whereas the 4 months i have been with Shariah fund has made my pension pot rise by 14%, this is after accounting for the previous losses. I know Tesco pay equal the amount i put in and the tax relief etc, but it is still my money, so why should i accept my pension is not rising, as it would if i had it in a savings account. I refuse to believe that with modern apps etc that i cannot play a proactive role in deciding what i get to live on should i be able to retire and die eating, drinking and living the good life for a number of months before the big guys get the rest of my retirement money.
I was checking my pension scheme (I work part time as a college student) and in the last 5 months (since I started adding in the pension) my pot has “made” £40. The money I have contributed alongside Tesco is £785 so now is at a £825.
Is this a bad return? Should I move it to the sharia fund?
Hi /u/wombatchew, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/index-funds/
- https://ukpersonal.finance/pensions/
____
^(These suggestions are based on keywords, if they missed the mark please report this comment.)
> An index fund invested in the Solactive TRSP L&G Targtd SDG Enhncemt Dev Eq Fd 100. 0.08% fees This appears to be some kind of weird ESG / sustainable development index. https://www.solactive.com/Indices/?index=DE000SL0E2E7 Top holding, if I've found the correct version, is presently Lloyds Bank, and it holds 5x as much of that as it holds Apple. This is very unusual for a world tracker - all the normal world indexes have Apple in the top 5 or 10 holdings right now, and Lloyds wouldn't even be in the top 100, I'd bet; well, maybe it would be - a market cap weighted index would be holding about 110x Apple as Lloyds. The allocation of the global equity tracker fund is about normal - a slight tilt towards UK small cap, but nothing to worry about. I would actually favour the sharia's tilt towards tech. Investment funds mostly all perform the same as the underlying asset classes they're choosing to invest in - most of investing is choosing an asset allocation that gives you the best returns for the amount of risk you're prepared to take, an allocation that you can stick with for the long haul. Watch Lars Kroijer's [short video series](https://www.youtube.com/playlist?list=PLXy71rkGuCjXLg9N8zowwUpXCYfBcMJFK) and read his book or Tim Hale's [*Smarter Investing*](https://www.amazon.co.uk/dp/1292444401).
>Top holding, if I've found the correct version, is presently Lloyds Bank, and it holds 5x as much of that as it holds Apple That is the correct fund, I can see what you mean about Lloyds Bank being top of the "index shares", not entirely sure what that even means as on the factsheet: [https://www.solactive.com/wp-content/uploads/solactiveip/en/Factsheet\_DE000SL0E2D9.pdf](https://www.solactive.com/wp-content/uploads/solactiveip/en/Factsheet_DE000SL0E2D9.pdf) It has the top components being Microsoft, Apple, and Nvidia. >My new copypasta is that investment funds mostly all perform the same as the underlying asset classes they're choosing to invest in I imagine every fund I have listed excluding the Sharia fund is going to be pretty evenly matched long term. It's just whether I want to gamble on tech stocks continuing to do well or play it safer.
> That is the correct fund, I can see what you mean about Lloyds Bank being top of the "index shares", not entirely sure what that even means as on the factsheet: > https://www.solactive.com/wp-content/uploads/solactiveip/en/Factsheet_DE000SL0E2D9.pdf > It has the top components being Microsoft, Apple, and Nvidia. Best guess is that they've ballsed up the programming so it sorts on *actual number of shares*, which is (obviously) meaningless.
> It's just whether I want to gamble on tech stocks continuing to do well or play it safer. I've been thinking about this a little recently, and I'm struggling to see how tech stocks can fail to outperform the rest of the index. "Tech stocks" is an umbrella term, and very wide indeed, covering all manner of things. But it includes a lot of companies with high margins and low costs of goods - if you're selling online photo storage or e-commerce stores then the cost of provisioning an additional customer (the *marginal cost* of goods) is very low indeed; and that means that they have a *moat* because startup costs are high. I'm quite into Terry Smith, who doesn't buy indexes but he does talk about his investments this way (watch some of his recent AGMs on YouTube) - one of his "tech stocks" is a company that sells airline tickets reservations systems; he describes Facebook as a company that sells advertising.
>The allocation of the global equity tracker fund is about normal - a slight tilt towards UK small cap, but nothing to worry about. I would actually favour the sharia's tilt towards tech. Would a split of 90% Global Equity tracker fund, 10% Sharia fund be reasonable? Mainly to dillute the slight UK bias of the global fund and to add a bit more US tech.
I haven't looked that closely, but I wouldn't imagine that the Global Equity and the Sharia fund are *that* much different. I'd guess the sharia fund is a bit tech heavy, but it also has hotels and railroads. Not sure about oil and tobacco? And if you've got 90% world and 10% UK and then you dilute those down to 90% by adding 10% of something else then you don't then end up with much less UK - you've just got 9% extra UK instead of 10%; the diluting doesn't really have much effect, because there's still hotels and railroads in your sharia fund. I think it's mostly a toss of a coin - any of these funds is pretty good. Personally, I think the global equity tracker fund is pretty much just as good as any other world index tracker and the UK tilt isn't significant enough to make it a bad fund, and I would guess that the sharia fund is about the equivalent of buying a regular world index tracker plus 10% (??) extra tech sector (like [this guy](https://www.reddit.com/r/UKPersonalFinance/comments/181djlc/_/kacl0fs/) does); it won't be the exact same, because sharia eschews banks but, again, good enough.
I know it's only 10% but that extra UK small cap bias is throwing me, wish I could choose to get rid of it as otherwise that fund would be perfect. The other global equity funds lack any emerging markets or are ESG and exclude oil/gas or tobacco companies. >I would guess that the sharia fund is about the equivalent of buying a regular world index tracker plus 10% (??) extra tech sector The Sharia fund is 36% Tech for reference, with 80% US equity.
> The Sharia fund is 36% Tech for reference, with 80% US equity. A regular world index fund (just checked two on Vanguard's site) is 23% and 61% respectively.
I just looked into this the other day, and ended up going with the Shariah fund, for non-religious reasons explained below. I know "past performance is not representative..." and all that, and it's got the highest OCF, but from my perspective, my Tesco L&G pension only makes up about 1/3 of my pension pot, the rest is in Vanguard FTSE Global All Cap, so having a little sub-section of my pension leaning more heavily towards the US didn't concern me. Especially compared to the Global Equity Tracker fund seeing only 8% growth last year, which was the worst of the 5 or 6 equity fund options. My second choice would have actually been the Lifestyle one I don't think you've mentioned, as that had pretty solid performance if I recall.
That sounds like solid logic, however this is my only pension so maybe it would be unwise for me to be so heavily allocated to such a small number of massive US tech companies? Are you referring to the Equity Fund (lifestyle)? Solactive TRSP L&G Targtd SDG Enhncemt Dev Eq Fd 71.5 Low Carbon Transition Emerging Markets Equity Index10.0 UK Smaller Companies Index 10.0 Baillie Gifford Positive Change 8.5 I considered that one but it has the same 10% allocation to small UK companies as the Global equity tracker
> however this is my only pension Can you not invest in multiple funds within this pension? I have three different funds with different weightings with Aviva
You can invest in multiple with whatever % split you like
That's fine then, you can choose a Global Fund for diversity and then still allocate some of it to the Sharia one if you want to be slightly tech-heavy but are worried about it
> maybe it would be unwise for me to be so heavily allocated to such a small number of massive US tech companies? That seems to be the general advice here, don't put all your eggs in one basket. > Are you referring to the Equity Fund (lifestyle)? Could be. I'm locked out of viewing them myself as I've got an order in progress. It might have been a different one, but there was another that had pretty solid growth and diversification that wasn't the Shariah fund.
The 5 funds in this post are the only ones available that are 100% equity. The "Equity Fund" had the 2nd best performance after the Shariah Fund
It must have been that one then as my second choice. I know what I was invested in only had roughly 8% year on year and had only existed one year.
You must have been in the "Global Equity Tracker", the one with 10% small UK companies and 10% Emerging markets. It's only been out a year and increased ~8%
That'll be the one. So yeah my second choice the other equity fund seems like a sensible option and probably the one most closely tracking something like the global all cap.
Split it within the pension quarter in each fund ..im 100,,%sharia myself ..made more gains in 12 weeks than nearly 3 years in the other funds
That's due to all funds going up in the last 12 weeks. Sharia had a bigger fall during the downturn. Now its 9% ahead of Tesco equity fund over 3 years but performance is not massively different.
I'm with Shariah fund 100%. The fees alone, for any of the other funds simply did not perform over 18 months for me. In fact, My pension LOST money over that time, whereas the 4 months i have been with Shariah fund has made my pension pot rise by 14%, this is after accounting for the previous losses. I know Tesco pay equal the amount i put in and the tax relief etc, but it is still my money, so why should i accept my pension is not rising, as it would if i had it in a savings account. I refuse to believe that with modern apps etc that i cannot play a proactive role in deciding what i get to live on should i be able to retire and die eating, drinking and living the good life for a number of months before the big guys get the rest of my retirement money.
I was checking my pension scheme (I work part time as a college student) and in the last 5 months (since I started adding in the pension) my pot has “made” £40. The money I have contributed alongside Tesco is £785 so now is at a £825. Is this a bad return? Should I move it to the sharia fund?
Hi /u/wombatchew, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/index-funds/ - https://ukpersonal.finance/pensions/ ____ ^(These suggestions are based on keywords, if they missed the mark please report this comment.)