Legal & General Porfolio Bond

Kavanne

cheerfulcat wrote: »

Hi, Krissie,



Is this income coming from dividends, or is it coming from encashment of units every month?

If she is the same as me it is encashments. I've just reduced the income I am taking from mine.

Merrill_Lynch

Me again

For clarification...I invested 50k in my particular L and G fund...it was up to 59k just a few months ago and is now just hovering above 40 thousand..as I said it just keeps heading down..no ups.
Should I stick with that or ask to switch funds and if so which one. I am worried that the original fund could drop to something like 25k or even lower...that would take nerves to steel to stick with that surely.

Between us my partner and I did have total investments of £325,000 last August - less than 6 months ago....now we have £270,00. Of that 80k is in cash...so it would appear that despite a "good spread" across 14 different funds/bonds etc...we have lost rather a lot.

greenface

jem16 wrote: »

IFAs have different options on how to pay. There is a fee, a commission and a hybrid fee. With a hybrid fee (also known as customer agreed renumeration) you could have agreed an amount which then would have been paid from the commission that the provider would have paid.



It wasn't free - it just looked that way. A&L would have got a very nice commission from L&G on the product they sold you which increases your charges over the years.

As to their advice, using 4 funds for £300k is very poor advice. An IFA would have used at least 10 and possibly 15.

Seeing an IFA would have been a much better choice.

Well not always true my IFA has invested my 300k in 2 funds :eek: only in mid 2007 one into commercial property other invesco perpetual uk growth ? 50/50 and full isas in exactly the same. not sure how bad it has gone.

dunstonh

Between us my partner and I did have total investments of £325,000 last August - less than 6 months ago....now we have £270,00. Of that 80k is in cash...so it would appear that despite a "good spread" across 14 different funds/bonds etc...we have lost rather a lot.

You havent lot a lot. You have lost just 16% and that is nothing. When you consider that since 1986, there have been at least 10 periods that have seen losses of more than 10% on the FTSE. Thats of nearly once every 2 years. The drop until October last year (the bottom of the market) from the peak the year before was 44%.

A quality fund spread isnt going to avoid losss. It could reduce them a little or indeed even increase them a little. However, it offers better upside over the long term and you have to average the ups and the downs. You cant just take the ups of 15% a year and assume thats what you are going to keep getting. You are going to get negative years in there from time to time.

Aegis

greenface wrote: »

Well not always true my IFA has invested my 300k in 2 funds :eek: only in mid 2007 one into commercial property other invesco perpetual uk growth ? 50/50 and full isas in exactly the same. not sure how bad it has gone.

That really doesn't sound even close to good advice for the amount in question...

greenface

Aegis wrote: »

That really doesn't sound even close to good advice for the amount in question...

dont want to invade another persons thread just pointing out that its not just tied agents that only use minimal funds IFAs can be a little lazy too this was posted a year ago:eek: by me.
http://forums.moneysavingexpert.com/showthread.html?t=803065

Merrill_Lynch

Just a quick line to say thanks to you all. I feel slightly better this evening. I had been thinking that our investments had fared worse than others...but according to replies so far...it would seem we haven't done too badly. Still hurts though doesn't it chaps.
I think I have been a fool to myself for watching our investments too closely...A little knowledge being dangerous in certain novice hands.
I worried much less when I received half yearly reports rather than being able to check on line every couple of weeks.

dunstonh

dont want to invade another persons thread just pointing out that its not just tied agents that only use minimal funds IFAs can be a little lazy too this was posted a year ago:eek: by me.
http://forums.moneysavingexpert.com/....html?t=803065

Its a fair point. Thats why you should find out what your IFA specialises in or does most of. The term IFA covers a range of skills and competencies. At base level it means they have passed a certain level of exams and have access to the whole of market and can pay either fee or commission basis.

Seeing an IFA that spends 95% of their time doing mortgages is great if you want a mortgage but not if you want a larger investment portfolio (and vice versa). Increasingly, IFAs are specialising or sticking to what they are good at rather than be Jack of all trades. However, at least until 2012, that isnt going to change. Post 2012, you should see some improvement.

whiteflag_3

dunstonh wrote: »

Its a fair point. Thats why you should find out what your IFA specialises in or does most of. The term IFA covers a range of skills and competencies.

so what skills or competencies do IFA's have that mean that they can do a better job of running an investment portfolio than a "multi manager" manager?

Merrill_Lynch

A quick question for dunstonh.

Re my investment figures - losses of 55k off the overall figure of 325k would represent a 16 percent loss...but am I right in thinking because 80k of that is in cash the loss re investments is 55 k froom 245k = 22 % .

If that's right how does it compare with the so-called norm ?

Merrill
xx