What do I do about my 'dogs'?

Robie

I have few funds who are a real dogs in my ISA. Unfortunately, I left them in there as I didn't actively manage my s&s isa. What do I do? What do I replace them with? Dogs are:

Jupiter Income
Invesco Perpetual High Income
Jupiter High Income
Lazard Global High Quality Bond (USD) Income Units

Does any body have any suggestions? I am just fed up of them. I am thinking of cashing them out :-(.

Thanks

Robie

dunstonh

Why are you classing Inv Perp High Income as a dog?

Does any body have any suggestions?

What is your strategy? What are you other funds? What is your risk profile? What is your objective?

I am thinking of cashing them out :-(.

If that's the case, then why ask about other investment funds?

Robie

dunstonh wrote: »

Why are you classing Inv Perp High Income as a dog?

What is your strategy? What are you other funds? What is your risk profile? What is your objective?



If that's the case, then why ask about other investment funds?

Thanks for response Dunston.

1. Inv Perp High Income hasn't made money for a while now.
2. As for strategy - well I don't have one as such except I have tried to encompass all sectors as much as possible with my other funds. Risk wise, I am willing to take risks and am able to put money away for a while.
3. Cash out because I am not sure where else to go. Just looking for some thoughts from other members.

jimjames

Just because a fund hasn't done well recently doesn't necessarily mean it is a dog. It could be that the market hasn't moved the way the manager expected but will do in future. If the fundamentals of the fund were right when you bought and the manager hasn't changed then it could still be worth holding.

One example was prior to the tech crash of 2000/2001, several managers were being berated for running dog funds because they were not buying into the tech bubble. They called the top of the market too early but could see that the value being assigned to companies with no plan or profit was crazy. After a while they were proved right and their funds bounced back while those following the bubble didn't.

I hold Jupiter Income and intend keeping it as I believe the manager will perform long term.

Robie

jimjames wrote: »

Just because a fund hasn't done well recently doesn't necessarily mean it is a dog. It could be that the market hasn't moved the way the manager expected but will do in future. If the fundamentals of the fund were right when you bought and the manager hasn't changed then it could still be worth holding.

One example was prior to the tech crash of 2000/2001, several managers were being berated for running dog funds because they were not buying into the tech bubble. They called the top of the market too early but could see that the value being assigned to companies with no plan or profit was crazy. After a while they were proved right and their funds bounced back while those following the bubble didn't.

I hold Jupiter Income and intend keeping it as I believe the manager will perform long term.

I have had the Jupiter Income for about 12 years now and I think I have kept it long enough. It just hasn't done anything for a long time and I think Anthony Nutt needs to improve a lot to keep me, quite frankly.

Annisele

Robie wrote: »

As for strategy - well I don't have one as such except I have tried to encompass all sectors as much as possible with my other funds. Risk wise, I am willing to take risks and am able to put money away for a while.

Depending on the total value of your investments, it sounds as though you might benefit from a chat with an IFA.

I have no idea how to suggest you go about picking shares/bonds/funds unless you have a clear idea what your strategy is and how much risk you are willing to take. A good IFA should be able to talk that through with you.

"Willing to take risks" is something of a given. If you weren't, you'd have spent all of the money already (because even keeping it in cash exposes you to inflation risk). How much risk you're prepared to take is another thing, and I think that it's easier to manage a portfolio if you're clear in your own head about the level and types of risk you're willing to accept.

jamesd

Robie wrote: »

1. Inv Perp High Income hasn't made money for a while now.

Why hasn't it made money for a while now? How far back do you mean by a while now? Does the reason for it not making money still apply or does that reason make it a good idea to invest more in it now? Finding out the answers if you don't know them will be useful. Selling it is probably the biggest mistake that you're considering.

What performance are you after, with what potential drop in value during a bad market? Happy to take a 75% capital value decrease sometimes to get a 100% gain over say five years? Happy with emerging markets funds?

Steven86

IMHO Neil Woodford is probably one of the best UK fund managers around, he is more defensive than a lot of UK Equity Income managers so performance lags, he looks as non cyclical stocks mainly such as tobacco , but on the whole he is usually more right than wrong, I would potentially look as this as a hold but of course its up to you!!

cheerfulcat

Robie wrote: »

Thanks for response Dunston.

1. Inv Perp High Income hasn't made money for a while now.

What about the income you've been getting? ETA - that goes for all of these " dog " funds.