By Tom Aylott, Reporter, Trustnet, 21 August 2023:
What investors choose to put in their pension is an important decision as it can have a significant influence on their overall quality of life when they enter retirement.
It is very important to start early so that a large pot can be accrued, but as we get nearer to retirement, having a portfolio of resilient trusts that offer both capital preservation and growth can be a winning strategy.
Trustnet asked experts for the best trusts investors can hold at the core of their pension to pave the way to a comfortable retirement.
Ruffer Investment Company
The Ruffer Investment Company’s low volatility may have satisfied low-risk investors who wanted steady performance, but its cautious approach didn’t sacrifice on total return…
City of London Investment Trust
Juliet Schooling Latter, research director at Chelsea Financial Services, also understood investors’ desire for both capital preservation and growth without the unpredictable returns…
Alliance Trust
Although timing when to buy trusts at a discount can be “counterproductive”, QuotedData’s head of investment company research James Carthew said investors “should welcome weak markets as they provide an opportunity to build larger positions”.
This is precisely the case with Alliance Trust – a perfect addition to any pension that is selling at a 6.7% discount to its NAV.
Carthew said he liked the fact its all-out equity exposure could deliver high returns whilst its management team of 10 external management teams keeps allocation diversified and adds defensiveness in down markets.
“I suggest that the best core pension investments would be globally-diversified, equity-heavy funds that you can trust will be around until you feel ready to retire,” Carthew added.
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