How is my M&G S&S ISA performing?

Ms_B

Hello,

I've just started to wise up to my finances and am now scratching my head over whether my current S&S ISA with M&G is worth sticking with or switching from.

The story is that way back in 1993 I opened a PEP with Prudential Global Growth fund and drip fed £50pm until Jan 1999 when I increased it to £200pm. I increased again in Feb 04 to £260 pm which is the current level. Somewhere along the line Prudential were bought (?) by M&G and today I'm with M&G International Specialist Equity Fund. Fee's of 4% initial and 1.66% annually.

I calculate that I've drip fed a total of £43,990 over the years and made two withdrawals totalling £5000. The fund value this morning is £43,500. This sounds pretty poor to me, what does everyone else think? I've just found out that this is a pretty high risk fund, 6 out of 7 which has shocked me as that is not my attitude to risk at all. I feel pretty embarressed that I'm only just waking up to this so any thoughts would be much appreciated.

Thanks

ColdIron

<Pedant>
The Pru bought M&G
</Pedant>

nad33m

so your savings went about £10000 up in 10 years? thats 20% or 2% a year. It is actually more than than 2% a year as you drip fed and my calculations are on lump sums. So you actually got about 3-4% a year.

The problem with high risk funds I think they invested in Asia and maybe parts of Europe. You can check where your money is invested by researching the fund.

I would say that is average to poor, some of the top trusts have gone up 20% this year alone (Liontrust for example). I would switch half atleast into another fund. The half that you keep maybe will show some reward if you stick with it, but I would consider moving that too.

oldfella

and do something about the annual charges - you get commission rebate from many online brokers

westy22

so your savings went about £10000 up in 10 years? thats 20% or 2% a year. It is actually more than than 2% a year as you drip fed and my calculations are on lump sums. So you actually got about 3-4% a year.

I think you need to revisit your calculations. My estimate is that the return has been nearer to 1% annualised.

C_Mababejive

It sounds pretty lamentable to me. You could have fared much better in an investment grade bond fund and had a good degree of safety.

xylophone

Explore transfer to discount broker. Examples below.

Look at lower risk funds?

http://www.hl.co.uk/investment-services/isa

http://www.cavendishonline.co.uk/investments/move-your-investment/

jimjames

westy22 wrote: »

I think you need to revisit your calculations. My estimate is that the return has been nearer to 1% annualised.

The key information that we don't know is when the £5k withdrawals were made. If it was early on then they would effectively have reset the clock back to zero with very little in the fund to compound for growth.

Any

Agree with others.
Poor performance. And expensive charges!!!

Transfer to online broker. And pick your own funds. Number of them if you wish.

HOWEVER not to loose the ISA status, ask the new chosen provider for transfer form and let them do it!! Very basic info, but not sure how up to date you are with ISA funds as you seem to be paying attention only recently (your own words).
You cannot just withdraw the money and put them elsewhere. They have to do it for you.

I also suggest you look at Hargreaves&lansdown http://www.hl.co.uk/investment-services/isa# to start off with to get some info how this works and then look at more brokers and choose one that you are happy with.