With 2 Crowns according to the Financial Express Crown Ratings method it has a proven track record. An R-squared of 0.96 suggests close correlation to the benchmark ABI Balanced Managed sector, but with enough of a differentiation to outperform the sector, although the Information ratio of 0.38 is a tad shy of being labelled 'good'.
Alpha is 1.44, with a beta of 1.07, according to Trustnet data.
Cumulative performance over 1,3 and 5 years has beaten the benchmark sector, while the performance in the three months to 8 January saw returns of 5.55 per cent.
The heavy exposure to UK equities particularly hurt the Standard Life Managed pension fund which has a mix of assets. The sum of £1,000 put in three years ago is now worth less than that. Further Trustnet data suggests the fund currently ranks 106 out of 598 mixed asset balanced managed pension funds. Over five years the placing is better, ranking 62 out of 598. Over 10 years it ranks 54 with a return of 15.4 per cent, as compared with the best performing peer over that period the Scot Eq Broker RFM Pension Strategy fund which returned 159.4 per cent.
Stan Life Managed pension fund S4 accumulation unit
Source: Financial Express Analytics
Manager's reply
Responding to a set of emailed questions, Matt Savage said the following:
Q. Is the asset allocation likely to shift towards any class in particular, such as UK fixed interest?
A. Managed funds over the last decade have been shifting a higher proportion of their assets to equities and until the credit crunch they were also seeking alternative assets. It is likely that going forwards they will still be dominated by the traditional asset classes. Although over the last year the proportion in fixed interest and cash has increased, it is too early to tell whether this is a permanent shift or a short term run to lower volatile asset classes.
Q. According to the data the portfolio has significant exposure to UK equities, but if a turnaround comes is it not going to be wiser to be exposed to, say, US equities, as recoveries are usually led from there, plus currently there would be benefit from stronger dividends when returned from dollars into sterling?
A The fund has a small bias towards both US and UK equities. The rationale is that although there is considerable uncertainty, valuations are attractive in certain areas of the market, against a background of central bank intervention and an easing of monetary policy.
Q. Is the balanced managed sector going to continue the momentum of the past few months?
A. The global outlook is still not positive for the short-term, and there is still as high degree of uncertainty. The short-term is too difficult to call.
Q. Do you have any particular goals for the fund over the coming 12 months?
A. It is a peer group fund and our objective over the next year is to outperform the ABI median.
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Most viewed pension funds 1yr |
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| Rank | Factsheet |
|---|---|
| 1 | Stan Life Managed Pn S1 |
| 2 | NU Balanced Managed Pn |
| 3 | Scot Eq Property Pn |
| 4 | Cler Med Balanced Pn |
| 5 | L&G Managed Pn G1 |
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Funds attracting money 1yr |
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| Rank | Fund |
|---|---|
| 1 | Virgin Pension Growth |
| 2 | L&G (N) Tracker Pension |
| 3 | Jessop (GAR) Cash PP |
| 4 | B & CE Contr Out Pension |
| 5 | Virgin Pension Income Protector |
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Top rated pension funds - Crown Rating 3yr |
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| Rank | Fund | Rating | 3y (%) |
|---|---|---|---|
| 1 | HSBC FSAVC Gilt & Fixed Interest |  |
15.3 |
| 2 | L&G (N) Cash Pension | |
15.0 |
| 3 | HSBC PPUT Gilt & Fixed Interest | |
14.6 |
| 4 | HSBC FSAVC Money Market | |
13.8 |
| 5 | HSBC PPUT Money Market | |
13.7 |