Black Rock unit trusts

Andrew2010

dunstonh wrote: »

No. Assuming you have the FTSE tracker, then the returns will typically be around mid table but consistent mid table. However, they offer only 3 funds (last I looked). One is a very expensive FTSE tracker, one is a specialist, high risk focused sector investment fund and the other is fixed interest sector. Whilst the returns on the specialist fund have been dire, its a specialist fund so you get periods like that. The issue is lack of choice, inability to diversify and most importantly for a DIY investment, it is damned expensive. Its more expensive than getting an adviser to set it up for you and taking commission on it.

How is it expensive?

You should diversify with investments but changing the fund house is not diversification. Diversification is changing where you invest. i.e. A UK equity fund with Blackrock is not diversification if you hold the FTSE tracker with Virgin. However, Blackrock continental Europe Tracker would be diversification as one invests in Europe (excluding UK) and the other invests in UK.

That's what I'd probably need then, thanks.

nrsql

Andrew2010 wrote: »

You're referring to the returns?

No. (Well sort of.) Virgin tend to have high charges. If you invest in the same fund (most trackers are nearly equivalent) with through different routes the route that maximises charges is likely to be worst - that's what usually makes Virgin poor - and as years go by the effect will compound.

Andrew2010 wrote: »

I can't post the link but I was advised to diversify. I understand OEICs are not just UK index tracking funds? So this would be a valid diversification strategy don't you think?

If you are in the Virgin UK index tracker then invested in somethoing that is not correlated to that (like something more global) then yes you will be increasing diversification.
Have a look at www.h-l.co.uk and fidelity and see what's available. Also check the charges of the Virgin tracker against other all index trackers through these platforms - e.g. hsbc, L&G.

Andrew2010

nrsql wrote: »

No. (Well sort of.) Virgin tend to have high charges. If you invest in the same fund (most trackers are nearly equivalent) with through different routes the route that maximises charges is likely to be worst - that's what usually makes Virgin poor - and as years go by the effect will compound.



If you are in the Virgin UK index tracker then invested in somethoing that is not correlated to that (like something more global) then yes you will be increasing diversification.
Have a look at h - l and fidelity and see what's available. Also check the charges of the Virgin tracker against other all index trackers through these platforms - e.g. hsbc, L&G.

Thanks. For the Virgin FTSE tracker it states no initial charge and 1% annual charge. Most of the BlackRock charges seem higher so Virgin seems inexpensive by comparsion. HSBC FTSE-index fund and European index fund are stated as 0.5% annual charge - would this represent inexpensive options?

bendix

Seriously Andrew, you don't sound like you know what you're talking about. To assume that you are going to get £3000 after five years simply because an ad (in your words) said it is very revealing. Firstly, the ad didnt say that. Secondly, past performance is no guarantee of future perfomance.

I'm afraid that if you don't understand basic concepts like this, you shouldn't be thinking of investing at all.

dunstonh

For the Virgin FTSE tracker it states no initial charge and 1% annual charge. Most of the BlackRock charges seem higher so Virgin seems inexpensive by comparsion.

Blackrock UK Equity tracker has a total expense ratio of 0.24%. That compares to 1% with Virgin. That Blackrock fund is the direct comparison of the Virgin fund. The other funds you are looking at are not index trackers but active managed. Active managed funds are different to index tracker funds.

HSBC FTSE-index fund and European index fund are stated as 0.5% annual charge - would this represent inexpensive options?

HSBC tracker funds are 0.37% (TER) for the European and 0.27% for the ftse all share. Not quite as good as blackrock trackers but still much better than Virgin. (assuming retail versions and not institutional versions that some platforms carry :cool: )

nrsql

bendix wrote: »

Seriously Andrew, you don't sound like you know what you're talking about. To assume that you are going to get £3000 after five years simply because an ad (in your words) said it is very revealing. Firstly, the ad didnt say that. Secondly, past performance is no guarantee of future perfomance.

I'm afraid that if you don't understand basic concepts like this, you shouldn't be thinking of investing at all.

A bit harsh - everyone has to start somewhere.
I would go with "not with large amounts" rather than "not at all" maybe a monthly feeder.

A few more posts and I'm sure he'll be ok.

Andrew2010

dunstonh wrote: »

Blackrock UK Equity tracker has a total expense ratio of 0.24%. That compares to 1% with Virgin. That Blackrock fund is the direct comparison of the Virgin fund. The other funds you are looking at are not index trackers but active managed. Active managed funds are different to index tracker funds.

HSBC tracker funds are 0.37% (TER) for the European and 0.27% for the ftse all share. Not quite as good as blackrock trackers but still much better than Virgin. (assuming retail versions and not institutional versions that some platforms carry :cool: )

What are your thoughts on choosing between global or European equity funds?

Incidentally, I tend to agree with the last poster who suggested not large amounts initially.

dunstonh

What are your thoughts on choosing between global or European equity funds?

I dont chose between them. My view is that either the portfolio is big enough to be able to use single sector funds and use a structured portfolio or if its too small I use self balancing portfolio funds or fund of funds.