How does this investment rate?

Geriatric

Started a British Assets Trust savings plan 20/06/09 of £50 per month and also made a single payment of £2,500 on the 12/03/00. All net didvidends reinvested.
Position today £50 per month for 20 years £12,000
12/03/00 single paymen £ 2,500
Reinvested dividends £8,426 Total £22,926

Have 21,008 shares at £1.01 £21,218.
Disappointed that this value less than what has been put in. Would I have been better off in a buiding society? Too difficult for me to work out.

jon3001

Geriatric wrote: »

Started a British Assets Trust savings plan 20/06/09 of £50 per month ...
Position today £50 per month for 20 years £12,000

You started the £50/month in 2009 or 1989? Where did this 20 years come from?

Geriatric wrote: »

Would I have been better off in a buiding society?

Would you have paid any tax?

purch

The return on the Investment should be looked at based on your original investments. The dividends reinvested are part of the return.

It appears you have invested £ 12K over the 20 years, and a lump sum of £ 2,500 9 years ago.

Thus you have invested £ 14,500, and today your investment is worth £ 21,500

Not a stella performance over the period, but not far from what the overall FTSE All Share would have returned.

The British Assets Trust is run by Foreign and Colonial, and is not one of their better offerings, it has not out performed it's benchmark by very much over the last few years.

Farway

As the fairly large warnings on all share savings plans, investment & unit trust etc tell you

This from BAT web site
"Stock market and currency movements may cause the value of investments and the income from them to fall as well as rise and investors may not get back the amount originally invested."

You, like many, including me, bought at the wrong time and the recent turmoil has added to it, you may well find the more recent purchase gaining in value over the years

In the short term you would have been better off in a building society, but over the longer 20 years you should do better

For instance my Graphite [also with F & C] is showing 61% gain since 1998, my Murray International has 58% gain since 1998

But my Primadona, hwich is abit speculative, shows 66% loss, since 2000 BTW, was 2000 the high tech bubble year?

Geriatric

jon3001 wrote: »

You started the £50/month in 2009 or 1989? Where did this 20 years come from?


Would you have paid any tax?

Sorry old eyes started 20/06/89. No further tax due or paid

Geriatric

purch wrote: »

The return on the Investment should be looked at based on your original investments. The dividends reinvested are part of the return.

It appears you have invested £ 12K over the 20 years, and a lump sum of £ 2,500 9 years ago.

Thus you have invested £ 14,500, and today your investment is worth £ 21,500

Not a stella performance over the period, but not far from what the overall FTSE All Share would have returned.

The British Assets Trust is run by Foreign and Colonial, and is not one of their better offerings, it has not out performed it's benchmark by very much over the last few years.

With the reinvested net didvidends of £8,426 it certainly seems to me to be a very poor investment.
F&C are only intereste in their return. They have a bonus if they beat the benchmark but lose nothing when they fail. Totally wrong and the Directors if truly independant would see that failure was taken into account

Geriatric

Farway wrote: »

As the fairly large warnings on all share savings plans, investment & unit trust etc tell you

This from BAT web site
"Stock market and currency movements may cause the value of investments and the income from them to fall as well as rise and investors may not get back the amount originally invested."

You, like many, including me, bought at the wrong time and the recent turmoil has added to it, you may well find the more recent purchase gaining in value over the years

In the short term you would have been better off in a building society, but over the longer 20 years you should do better.


For instance my Graphite [also with F & C] is showing 61% gain since 1998, my Murray International has 58% gain since 1998

But my Primadona, hwich is abit speculative, shows 66% loss, since 2000 BTW, was 2000 the high tech bubble year?

I made an error with the start date it did start 20 years ago and as the net dividends have been reinvested it struck me as being a very poor return but I had nothing to compare it with.

bendix

It doesnt seem like a bad return to me. You only put in 14500, and it's now worth £21,200. More importantly, you didnt put all that 14500 in at the same time . . it was drip fed in over twenty years so there was only, say, £600 in it for 19 years, £1200 in it for 18 years etc.

The dividends didnt just appear out of nowhere. You had to be invested to earn them.

turbobob

If you'd sold it when the share price was higher (it was between 1.30 and 1.50 for most of 2007 for example) then you'd have made more profit.

Geriatric

Thanks for the replies.
I have now calculated the net after tax return as 3.7%
£50 per month compounded monthly for 20 years at 3.7% gives interest of £5,788.
£2,500 compounded monthly for 9 years at 3.7% gives interest of £986. Total interest £6,774 plus £12,000 and £2500 gives grand total of £21,274.
Present value of 21,008 shares at £1.01 much the same at £21,218.
A 20 year savings plan in equities giving a net return of 3.7% does not seem much of an investment to me.
Yes turbobob with hindsight to get out in 2007 would have been the answer. With their large involvement in Scottish banks and resulting losses it is unlikely they will make up this ground for a long time.
However it did not stop the Director's increasing the total allowed remuneration from £200,00 to £300,000. They look after F&C as well giving bonuses for beating their yardsticks but not suffering when they fail. This type of bonus scheme should not be allowed . Any earned bonuses should be retained for a period and any negative years deducted.
The present situation is very much a case of heads we win tails you lose.

jon3001

Geriatric wrote: »

A 20 year savings plan in equities giving a net return of 3.7% does not seem much of an investment to me.

I'd be disappointed too. Did you learn anything from this? What will you do next with the money?

Looking briefly at the trust it seems to be dominated by FTSE-100 stocks. Personally I don't think that's particularly diversified if these funds represent your entire portfolio. There are a great many other places to spread your money and seek growth outside of UK large-caps.

If you intend to continue investing then you have a useful sum with which to take stock and devise a new plan.