Child Trust Fund - Stakeholder

ellaglend

we set up a stakeholder investment plan in 2005, when my daughter was born and every year its gone down in price and they still charge 1.5% Management Charge is there anything I can do ?

dunstonh

and every year its gone down in price and they still charge 1.5% Management Charge is there anything I can do ?

I very much doubt it has gone down every year. That certainly doesnt reflect the performance of any asset class.

2005 up, 2006 up, 2007 borderline up to loss, 2008 loss, 2009 up, 2010 up, 2011 loss, 2012 to date borderline. That is the sort of volatility you would expect (variations will apply depending on asset class and time in the year).

ellaglend

Ok, we invested £400 in 2005 - now worth £389.17, and they take 1.5% MANAGEMENT FEE it certainty hasn't gone up in 7 years!!!
would you no why that is?

dunstonh

Ok, we invested £400 in 2005 - now worth £389.17, and they take 1.5% MANAGEMENT FEE it certainty hasn't gone up in 7 years!!!

Ok, so that is different to what you said. You would expect most investments to be in surplus on 2005. Where are you invested?

would you no why that is?

I don't "know" why it is until you tell us where it is invested. Then I or others will be able to tell you. However, it won't be the 1.5% AMC that is the reason. That is £6 a year. It seems you think £6 is a lot of money. I beg to differ.

The trend of the return would be down to investing near peak of a growth market and then a negative market that followed of a level that is typically only seen once in a generation (although we have had two in the last decade). You may be aware of the credit crunch and global recession and that impacts on investments.

jimjames

You can get cheaper AMC say 1% not 1.5% but as Dunstonh says the difference between £4 and £6 is pretty irrelevant. An annual management charge is for holding the investments, it doesn't matter whether they have gone up or down it is still paid. Same as the gym, you still need to pay membership regardless of whether you get fitter or not.

Its too late now but what you should have been doing is adding to the plan each month through some of the bad months when you would have bought a lot more units for your money and be sitting on a bigger pot now.