Aviva - over 2 years my pension fund (100% in Deposit S2) loses £4,000 + inflation.

Daniel_Elkington

That's very honest Paul and probably the way to go for those who don't want any risk. You could have looked at some of the guaranteed products, you pay more for it but are guaranteed an increasing income base for retirement irrispective of charges and if markets do well then you can end up with more...

They do sound a bit equitable life-like though...

Earthling42

srcandas - good point.
but I wish this was a discussion - I was really looking to find others who have had a similar experience and to see how they had handled & with what results.
I do think aviva have been sloppy and here is an example of what I was eluding too:
I received a letter today from aviva ..... on the right hand side of the page (background in yellow) Titled 'Current Funds' it states 'Deposit Fund' ..... NOTE it does not say 'Money Market Fund' i.e. we're still gambling with your money but at a lower risk than equities. I was not told this when I was encouraged to change funds. aviva has a duty of care to its clients that in this case and in my opinion is below what should be reasonably expected.

jem16

Earthling42 wrote: »

Perhaps the admins on this site ought to check out who these anonymous supposed IFA's actually work for.
I absolutely appreciate that you take the risk to make yourself visible.

I would be much more concerned with an IFA who openly posts with their real name and contact details on a forum. To what purpose I wonder?

Earthling42 wrote: »

I received a letter today from aviva ..... on the right hand side of the page (background in yellow) Titled 'Current Funds' it states 'Deposit Fund' ..... NOTE it does not say 'Money Market Fund' i.e. we're still gambling with your money but at a lower risk than equities.

When you DIY it's up to you to do the necessary research. It does quite clearly state the fund's objectives on its factsheet supplied by Aviva.

"The fund aims to protect capital by investing typically in deposit investments and similar assets with governments, first class banks and major companies. Although the fund aims to provide a lower risk return, the value can fall."

http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/documents.aspx?user=Aviva_lifecust&type=packet_lp_fund_unit_doc_factsheet&Lipper=72005379

you are blocking people that might have something useful to contribute which you obviously haven't.

If people wish to contribute to your thread they will do so. The only one blocking replies is yourself.

Daniel_Elkington

well jem,

1. I am open and honest. If people want to check that I am a regulated individual then they are more than welcome to. My name makes that easier.

2. I didn't read the forum rules and wildly misjudged the point of this forum. I have now reviewed my posts and removed any offending items. If you feel that I have missed anything please PM me.

3. I am a businessman and want to make money so I can drive a ferrari on track days (and my little corsa ecoflex during the week!) and live in a fairly nice house. Unfortunately I rent a horrid little terrace, but have the ecoflex so I'm a 1/3 of the way there!

4. That picture is my real face (although the camera lies, I'm not that fat!) so people can see me when they talk to me.

5. Personally I find it hard to connect with people when they use a silly pseudonym and a rubbishy 'avatar'.

They aren't in any particular order.

I think you have all been really unfair on OP. They probably don't give two hoots about money and expected the advice they were given to be OK. The fact that someone performed a pension transfer (which is what I reckon happened, I don't know any contract that charges 3% for a fund switch!) with a few years to go, into cash, is fairly criminal.

Most people don't care about money and to find that your pension is worth less when you have been sold a 'safe' fund will make you pretty cross.

Their reactions may be a little OTT, but someone who has just lost 2K+ in a cash fund is going to be.

Tbh, looking at all the sector and fund titles they do need changing. IMA property for instance, why are UK bricks and mortar ranked up alongside global property security funds.

Does anyone actually read the fund managers objective? I explain these to my clients in the context of the overall portfolio, however nobody really cares. They just care that you care.


Finally, 95% of communication is not dependent upon the words used.

jem16

Daniel_Elkington wrote: »

3. I am a businessman and want to make money

This is not the place to do that IMO. You may also find that your compliance department may have a problem with you posting here so openly.

5. Personally I find it hard to connect with people when they use a silly pseudonym and a rubbishy 'avatar'.

That's what happens on an internet forum - in fact that's the whole idea of one.

I think you have all been really unfair on OP. They probably don't give two hoots about money and expected the advice they were given to be OK.

Everyone has tried to be helpful. There is no point in agreeing for agreeing's sake. If the OP didn't understand what was happening he should have seen an IFA. That is not Aviva's job - their job is to sell their products.

Does anyone actually read the fund managers objective? I explain these to my clients in the context of the overall portfolio, however nobody really cares. They just care that you care.

Exactly. You either read them yourself or you find an IFA to do it for you.

Finally, 95% of communication is not dependent upon the words used.

No it isn't but a great deal of communication is dependant on listening and keeping an open mind.

srcandas

Daniel the problem with being identified as a person in a forum is that you open yourself up to all sorts of undesirable contacts. I would advise most people to take care in that regard.

By protecting you identity you can discuss personal details with out fear of them being abused.

In general the ideas, thoughts, experiences given here are all unproven and need to be cross checked with several other qualify-able sources.

Often the advice posted will have been quickly entered without due thought and consideration. You as you say have fallen foul of this.

Further just because someone shows a name and a photo does not make them a real person. At least with an avatar and pseudonym that is obvious.

fairleads

Earthling42 wrote: »

Hello all,
I'm having a difficult time trying to get an understandable explanation from Aviva as to why the value of my pension pot (approx £100K) invested in what they call their safest on-deposit fund has lost £ 4,000 + inflation in the 1st year move from equity funds (£3k were their charges - not sure where the other £1k went). This year they have managed to increase my £100k fund by £285 - a nett increase of 0.28%. Their charge for 'managing' the fund is 1% - so they benefit by at least £1,000.

How is it possible to lose money on a deposit only investment? We know times are tough but I could have made a better return putting the money into any high street deposit bank account.

Anyone know what I can do in terms of complaining to Aviva or an ombudsman or anything that would force them to face up to what seems on the surface a completely incompetent performance. I have had 2 conversations with Aviva staff with each one passing me on to someone more senior - so far a complete waste of time.

Is it correct that Aviva has the highest number complaints made to the financial ombudsman? and what benefit could I derive by adding to the deluge of complaints against Aviva?

It feels as if the individual punter has no chance against financial institutions and there is no protection or redress against a financial company’s incompetent stewardship of hard earned savings. To add insult to injury I moved my pension pot from Equitable Life, after their downfall, at considerable loss into Aviva (Norwich Union as was).

First off no more phone calls. Email AVIVA with the facts and your concerns. If not happy with the reply write a letter of complaint and post it to the MD. Still not happy - contact the media. Crusader of the Express or Anne Robinson of the BBC etc. You've nothing to lose and everything to (deservedly) gain. Good Luck.

wavygravy60

Your plight is similar to that suffered by Standard Life investors in 2008/2009. They invested in the Sterling fund, which was supposed to be equivalent to cash, with a risk rating of 1 on a scale of 1-10. They all received compensation.

I can't post a link, but if you google standard life sterling fund compensation, you will get all the details.

I see that you have been given a hard time by the IFAs and their followers. So hopefully you might find this useful.

dunstonh

Your plight is similar to that suffered by Standard Life investors in 2008/2009. They invested in the Sterling fund, which was supposed to be equivalent to cash, with a risk rating of 1 on a scale of 1-10. They all received compensation.

Its not similar because Standard actually marketed it incorrectly and made a mistake and quite rightly had to put it right.

Aviva havent marketed it incorrectly and the fund objective clearly states it can fall in value.

I see that you have been given a hard time by the IFAs and their followers. So hopefully you might find this useful.

You mean those that work on the basis of facts have pointed out the facts. Its not about giving a hard time. Its about understanding or in this case choosing not to understand.

wavygravy60

Quod erat demonstrandum....