Top ten pension funds
If you are in your 20s, 30s or 40s, and saving for retirement, you will have a longer investment horizon than someone in their 50s or 60s. You may therefore have a very different attitude towards the level of risk you can take and the amount of time you have to save.
It is worth thinking about contributing to a workplace pension, if available, as an employer may pay in contributions on your behalf. On top of this, you could think about investing into a personal pension.
Many of our clients have collected a number of pensions along the years, usually as a result of changing jobs. If you are one of these people, why not consolidate them in one place with us here at Chelsea? To find out more about our Chelsea SIPP, via Chelsea FundStore, click here. Once you have a pension with us at Chelsea you can monitor and make switches online.
You should consider investing the maximum that you can afford, even if that is only £50/month. Compounding has an amazing effect on investing. Click here to find out more.
If you are interested in opening a pension, and have a minimum of £5,000 to invest (either as a lump sum, or as a transfer), why not complete our quick and easy online questionnaire.
But where should you invest?
We get asked this everyday, from pensioners to first time investors, and everyone in between. Being an execution-only broker we can't give personal recommendations. We can, however, offer our Chelsea EasySIPPs and here is a list of the top ten funds that our pension investors are currently invested into, as at 29th January 2015:
| Fund name | % of clients invested in our pension, via Chelsea FundStore | Chelsea Generic Rating | Chelsea Risk Rating | FundCalibre Elite Rated? |
| First State Asia Pacific Leaders | 5% | BUY | 7.5 | YES |
| Marlborough Special Situations | 4.7% | BUY | 7.5 | YES |
| CF Woodford Equity Income | 3.9% | BUY | 5 | YES |
| AXA Framlington UK Select Opportunities | 2.9% | BUY | 6 | YES |
| Artemis Global Income | 2.6% | BUY | 6.5 | YES |
| Artemis Income | 2.5% | BUY | 6.5 | YES |
| AXA Framlington American Growth | 2.3% | BUY | 7 | YES |
| Invesco Perpetual High Income | 2.3% | HOLD | 5 | NO |
| Baillie Gifford Global Discovery | 2.1% | BUY | 8 | YES |
| Jupiter European | 1.9% | BUY | 6.5 | YES |
James Yardley, Research Analyst at Chelsea, has had a look at the top three and why they could be good funds to invest in for the long term.
First State Asia Pacific Leaders
The First State Asia Pacific Leaders fund has been on the Chelsea Core Selection for over ten years. Since it went onto the Core Selection in February 2004, (replacing its sister fund First State Asia Pacific) it has returned an astonishing 374.75% after all fees.^
Last year was another exceptional year for the fund as it returned 19.07% versus just 9.47% for its sector.^ This is a bottom-up stock-picking fund which aims to invest in quality, sustainable companies. Because of it success the fund is now quite large and tends to invest in large-cap stocks. Fund manager Angus Tulloch has consistently rewarded patient investors so it is not surprising that Chelsea customers are willing to put their faith in him again for the longer term.
Marlborough Special Situations
The Marlborough Special Situations fund has been an incredible performer for Chelsea clients. Since August 1995 it has returned 2024.76%^. Last year the fund had another excellent year - despite a difficult period for UK smaller companies, it was still able to return 5.00% versus -1.63% for its sector.^
The fund is run by Giles Hargreaves, one of the UK's most experienced fund managers. He and his team are specialists in investing in smaller companies. Given the funds phenomenal track-record, it is not surprising to see this as the second largest fund held by Chelsea clients in their pension.
CF Woodford Equity Income
Neil Woodford is probably the most famous UK fund manager. His returns when managing the Invesco Perpetual High Income fund were exceptional. Neil left Invesco and launched his own fund group in June last year.
Since launch the fund is already second in its sector and has returned 11.34% versus 3.95% against his peer group.^ Neil is renowned for getting the big macro calls right. He is not afraid to avoid entire sectors of the market. Neil's fund is typically less volatile than its peers and he has historically outperformed in a falling market. Chelsea customers have been invested in Woodford's old fund for many years and it is not at all a surprise to see so many investors following him to his new fund.
If you would like to change your portfolio, you can do that here:
Remember, you don't have to invest in these funds within a pension. These funds are also available within an ISA, Junior ISA or non-wrapped product.
*29th January. This is based on what is invested over all of the pension products on Cofunds, to the nearest decimal point.
^FE Analytics 01/08/1995 - 06/02/2015