Author Topic: Pension, company stock/crappy mutual fund choices  (Read 2681 times)


  • Stubble
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Pension, company stock/crappy mutual fund choices
« on: July 18, 2013, 11:21:41 PM »
Just wondering what you all think, my defined contribution pension, rrsp contribution and profit Sharing all have a few choices, a bunch of crappy mutual funds, money market fund or company stock.  I've been employed for almost 5 years and have put it all into company stock (one of the worlds 5 biggest oil companies) and now the total has passed 80k in value and I'm starting to consider diversifying but these options of funds, sunlife, trimark all have high management fees and suck, all show gains of under 6 percent in 5 years.  Company stock has went up 35 percent and offers a 3.5 percent annual dividend.  I'm 24 so not retiring too soon and could ride out some lean times.


  • Stubble
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Re: Pension, company stock/crappy mutual fund choices
« Reply #1 on: July 18, 2013, 11:39:05 PM »
I would definitely diversify away from the employer stock.  Something happens to the company, and both your nest egg and employment are at risk.

Do you have other retirement investments, or is this it?

If you post a menu of choices (name, ticker, and expense ratio would be fantastic), I/we can help you find the least bad choices.

And is this actually a pension, or is it a 401(k)?


  • Stubble
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Re: Pension, company stock/crappy mutual fund choices
« Reply #2 on: July 19, 2013, 10:32:02 AM »

Go to personal rates of return to find out how your investments are performing.

Rates Of Return  As Of : 30 Jun 2013
 Fund        1 Month   YTD   1 Year   5 Year 
    Cvx NYSE stock fund   -1.3   17.4   19.5   7.9
    Sun Life Money Market   0.1   0.5   1.1   1.2
    PH&N Cdn Eq Plus Pension   -2.2   4.9   14.6   0.2
    PH&N Balanced Pension   -1.8   3.7   9.8   3.7
    PH&N Bond Fund   -2.0   -1.4   0.5   6.1
    PH&N Overseas Equity   -1.4   3.6   14.2   0.7
    The Trimark Fund   -0.3   13.1   22.2   4.8
    BLK US Equity Index   0.7   20.4   24.3   7.4
    BLK EAFE Equity Index   -1.6   10.5   22.9   0.3
    BLK S&P/TSX Comp Index   -3.8   -0.9   7.9   -0.5
    BLK Bond Index Fund   -2.0   -1.7   -0.2   5.5
    Trimark Canadian Fund   -3.6   7.5   18.0   6.6
    BLK Active Canadian Eq   -3.5   -1.1   7.9   0.5
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Performance of funds available in your plan

Show investment performance for:

Some have done ok, but when you factor in the dividend on company stock is 4% now not 3.5And that is automatically re-invested. 


  • Stubble
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Re: Pension, company stock/crappy mutual fund choices
« Reply #3 on: July 19, 2013, 10:34:58 AM »
This plan is a Defined contribution plan, similar to 401k, the money in it is mine tax deferred.


  • Handlebar Stache
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Re: Pension, company stock/crappy mutual fund choices
« Reply #4 on: July 25, 2013, 05:37:04 AM »
Thanks for posting the available fund choices and their returns.  We also need to know what the expense ratios are (ER), or the charges to use the fund.  Also, is there a fee for the DC plan?

The 4% dividend is quite nice.  Do a little research on the company and see how the dividend has been over the past and see how the stock price has been too.  Check to see if your company is one that has consistently improved the dividend; some companies are known for that. 

The diversification is important-Enron.  If you were to stay with the company for a long time, just holding its stock could be scary, mediocre, or awesome.  Nobody knows, but that is why a shrewd investor spreads the risk in a broad index of different asset classes that move somewhat or a lot differently on economic conditions, e.g., stocks (large, mid, small, value), bonds, REITS, international stocks. 

Have you read the Bogleheads' Guide to Investing, William Bernstein The Investor's Manifesto or any John Bogle books?  They will help fill you in on some important investing ideas.


  • Stubble
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Re: Pension, company stock/crappy mutual fund choices
« Reply #5 on: July 25, 2013, 09:50:37 AM »
I work in financial services w/a graduate degree in finance & accounting.  This is only my opinion, but here goes:

1.  Sell ALL of your company stock TODAY.  Since it's a tax deffered account there's no need to worry about short term capital gains. The company is your primary source of income, therefore you're already ridiculously long your company.  Don't make it worse.

2.  See which funds are the cheapest.  Does the company provide some kind of match?  If not, consider switching to an IRA with lower fees.  My 401k options suck so I only contribute up to the company match, then invest elsewhere.