Equitable Life

Be interested in this also as I have the same - have considered if possible to move to some kind of stakehold tracker pension - if such a thing exists?

In message , John Smith writes

Yes!

ARGGGGGGGGHHHHHHHHH!!!!!!! Why a 'tracker' and to 'track' what?

Lobby the government to change the law so that "separate account trusts" (I think they are called) can be set up as exists in US and Canada so that companies can not raid the UL fund when in trouble.

You heard wrong, unit-linked funds are entirely yours, and in any case they have been transferred to someone else (HBOS?)

Do you remember the JBSE 98? Its been doing great recently.

For us stupid people who haven't a clue what that means is that good, bad or indifferent? Can you explain it in plain English please?

Thanks,

John.

Why not do what he says and find out? You will find that the FTSE250 has outperformed the FTSE100 in the recent past. The FTSE350 and the All-share are dominated by the FTSE100, so have less deviation from it.

Oh, that is what he meant - yes, I think it is fairly common knowledge that companies outside the FTSE 100 have been doing better and the way that the

100 is measured there is more flexibility in share price in the 250 and 350 than in the 100.

On average, the share prices of the 101-350 largest companies on the London stock exchange have performed better than the 100 largest companies consistently over the last 5 years.

It's a good thing if you chose to invest in a FTSE 250 Index Tracker as opposed to a FTSE 100 Index Tracker.

2 Daytona

In message , Daytona writes

I dont know if by 'a good thing' you mean as in Messrs Sellar & Yeatman's meaning !! :-) Every poor performer from the ftse100 drops into the 250 as it sinks and often these sinkers outweigh the risers. Unlike the FTSE100 from which nobody can be promoted, only demoted, the

250 has a constant two way flow and provides better 'picking' opportunities.

So why not choose a good bottom up stock picker from the 250? Schroder Mid 250 perhaps?

Also companies which enter and leave the index have a higher weight in the 250 so a 250 tracker has more turnover and hence higher costs.

They enter and leave at both ends of the index. The numbers entering and leaving to the FTSE 100 will be the same as the FTSE 100. Those departing to the Small Caps will add to the number.

However trackers do not necessarily hold every share in their index.

Hmm, not sure about that. The 'relegated' & 'promoted' companies to/from the ftse100 are relatively small in number and by the very nature of them being at the bottom of the ftse100 it means that their market cap is not so big. . The difference in weighting between large and small in the ftse100 is not replicated to the same extent in 250. Also there is not so much effect caused by those moving in and out of the bottom of the 250. So I accept your concept but dont think the costs are really relevant.