L&G (Barclays) cautious portfolio - Major losses

RINSO84

Can any one advise as to if the L&G (Barclays) cautious portfolio are simiolar to the Barclys Morley/Avia/Norwich investments, that is they may have been miss sold/ badly invested/ cautious changed to balanced?

Thanks

bendix

Huh?

Slow down, take a deep breath and tell us the story. Then you might get a sensible response, because at the moment your question is meaningless.

Lokolo

bendix wrote: »

Huh?

Slow down, take a deep breath and tell us the story. Then you might get a sensible response, because at the moment your question is meaningless.

Oh good its not just me.

dunstonh

Can any one advise as to if the L&G (Barclays) cautious portfolio are simiolar to the Barclys Morley/Avia/Norwich investments, that is they may have been miss sold/ badly invested/ cautious changed to balanced?

They havent changed to balanced. So, no, in the way you word it they are not the same. Barclays and their salesforce did not correctly ascertain the risk of the Morley investments. That was why so many were sold to inappropriate people. The actual fund didnt change its risk profile and the problem was not the fund. It was Barclays management letting their low skilled salesforce sell investments that were really above their skills level.

The L&G (Barclays) Cautious portfolio is cautious risk and appropriate for that level of risk. The fund itself is pretty poor but that is quite normal for bank sold investments and not something you can complain about. I just did a risk scattergraph on the fund and its slightly lower in risk than the sector average

its loss from Peak to bottom was 26%. Quite consistent with cautious risk. It has since that bottom point grown by 22% which is above normal for that type of fund but the drop was bigger than normal as well so a bit of rebound was to be expected. If you bought at the worst point in the last 3 years you would only be 8.69% down currently (income revinested).

RINSO84

Many thanks for the details, great, the best I had hoped for is suggestion like refered to a victimns gruop.
I asked the question as it was bought 2007 and the loss is 43%!!!!!!!!!!!!!!!!!!!!! I had also noted that Barclays were being taken to the fSO regarding the Morley.

dunstonh

the best I had hoped for is suggestion like refered to a victimns gruop.

There is no reason to be referred to a victims group as there is nothing wrong with the fund and no widespread mis-selling of the fund.

I had also noted that Barclays were being taken to the fSO regarding the Morley.

They are not being taken to the FOS. That isnt how it works. A large number of individuals complained that the fund was not suitable for the cautious risk level it was sold to them as. Barclays initially rejected that but have since backed down.

I asked the question as it was bought 2007 and the loss is 43%

That is not possible.

In unit trust form: It you bought the fund at its highest possible price in 2007 (which was 29/10/07) then its lowest price since then was on 6th March 09. The size of the drop was 26.01%. At no point has it lost 43%. Since that low point it has got within 10% of that high point again.

In life fund form: It you bought the fund at its highest possible price in 2007 (which was 30/10/07) then its lowest price since then was on 10th March 09. The size of the drop was 25.10%. At no point has it lost 43%. Since that low point it has got within 10% of that high point again.

Either you are misreading your information or you have made significant withdrawals

chopperharris

My ifa/7im portfolio went down about 30 odd percent , low risk , and is now sitting at around 90 percent of inception value...so the 10 percent down should be about right.

Taking maths into play a fund losing say 30 percent needs more than a 30 percent gain to get back to level , 1000 - 30 percent = 700 , 700 x 30 percent is 910...if you see what I mean.

RINSO84

There most certainly is an unknown; a cautious fund properly invested should not be producing that loss. There have BEEN NO withdrawals! So I suspect the portfolio “title” that is what’s exactly the money is invested in needs confirmed by Barclays. With what has been written the first question is to get Barclays to state precise details of what the portfolio is invested in.

dunstonh

a cautious fund properly invested should not be producing that loss.

It hasnt produced that loss.

There have BEEN NO withdrawals!

Ok. Now this sounds fishy.

The fund you have is available in life fund or unit trust form. Neither of them, even to the worst point has made the level of loss you say it has. So, what else has caused the value to do down.

If you have an older statement, can you post the number of units you have on that and from a more recent statement can you post the number of units you have. Can you also verify that you have that particular fund.

With what has been written the first question is to get Barclays to state precise details of what the portfolio is invested in.

You have already said where it is and that fund has slightly lower risk than the sector average for cautious managed funds. Its a completely awful fund. Its never been good since the day it was launched but that doesnt matter (when you buy from a tied rep, quality is not something they have any control over). It has never suffered a loss even close to the size you say it has. So, something is not right. Withdrawals would have been a possible thing but you say there are none. So, that suggests that something else isnt right as the fund cant by itself have a loss of that size.

Currently you should be around the 10% mark down if you bought in 2007.

RINSO84

Thanks for suggestions comments, after following through the details I was asked to look at i found the gremlin, a large chunk had been transferred thus overall loss is down to 8.5%.

dunstonh

Thats more like it. However, do take on board that the investment is low quality. It may be worth a visit to an IFA to get them to give an unbiased review of it and give you potential alternatives. You are effectively in a low quality jack of all trades, master of none fund at the moment and paying pretty much full whack for that.