No. of Recommendations: 1
It strikes me that target funds allow fund managers to create lots of different funds, presumably with extra charges.
I would have thought that a pension fund should be (say) 70:30 in equities : bonds/cash a year before retirement, and the same a year after retirement, whether or not an annuity was bought. A sensible allocation is a sensible allocation, even if an insurance company has taken the assets and offered an income stream. If the person runs the pension themselves then it's even more clear that the allocation shouldn't change.
ETFs are great, but imho there are far too many of them. If it was my decision, I'd scrap all the target funds - make them just use 60:40 or something.
SA
