Orbis poor performance

redrose2

I invested £100 earlier this year, due to their £100 match offer. I was getting a reasonable return so I invested a further £300 in August. The return of around +£15 fluctuated a little and went down significantly in October and continues to go down, its now -£45. The gift of £100 from Orbis can't be withdrawn until a year after opening the ISA, so not until next April. I am thinking by that time that £100 will be gone and hopefully not more than that, in the last couple of weeks its gone down by £25. This is my first, and likely last, of these types of ISA. I thought this feedback could be helpful for anyone else thinking about investing with Orbis at this time.

cjv

Unfortunately you may have invested above your acceptable level of risk and have only just realised it, this was not suitable as a short term investment. The markets have been volatile this year, so it will not just be orbis that is showing a loss.

I too invested with orbis, but just the minimum to get the bonus and always intended to withdraw it after it is payable.

You will probably still come out ahead with the bonus, but nothing is guaranteed.

Novice_investor101

Sounds like you did no reseach into what you were getting into. What you have seen in terms of values of your ISA is completely normal for a stocks and shares ISA - the stocks have gone down in value. If you wait long enough, they'll go back up again. Or they could just continue going down.

Sounds like you'd have been better off with a normal savings account.

Alexland

If you invested on the back of my MSE forum posts then the first paragraph on the top post said "Orbis are contrarian value investors and when investing your capital is at risk so this won't be for everyone".

S&S investments should be judged over the long term and it sounds like you invested in the more volatile Orbis Global Equity fund which on Friday is down 8.3% over the past 12 months. It is still up an average of 10.2% pa over the past 5 years.

https://www.orbis.com/uk/individual/funds/global-equity-fund#performance

Orbis provided me some good feedback on their recent investment performance in the below post.

https://forums.moneysavingexpert.com/discussion/5810758/orbis-100-match-offer-now-ended&highlight=orbis&page=4#62

And their UK boss gave an interesting interview on YouTube last week:

https://m.youtube.com/watch?v=tZiyNQIZ910

We continue to regularly add money into our S&S investment accounts including Orbis.

Alex.

dunstonh

What makes you think that Orbis have anything to do with the loss?

I was getting a reasonable return so I invested a further £300 in August.

At a market peak. We have since then seen markets drop. Not by much. Around 12% on average. That is half a typical crash and nearly a quarter of the drops seen during the credit crunch and dot com periods.

This is my first, and likely last, of these types of ISA.

Why?

You invested into a stocks and shares ISA that realistically needs 10 years to match a whole economic cycle. In that period you know you are going to get good periods, nothing periods and negative periods. The first minor negative period comes along and you seem to have lost your head. Why?

I thought this feedback could be helpful for anyone else thinking about investing with Orbis at this time.

The only feedback others can take from this is that you didnt know what you were doing and still do not.

redrose2

As a property developer I know about investing when there is a downturn in the market/ adjustment. Hence the post was useful for anyone thinking of investing at this time. I added funds at the start of August, before the peak, at the peak the return was twice that at the time I added funds. This particular fund would appear to be somewhat volatile, down 9% at the time of posting.
I was just dipping my toe in the water with S&S, the matched funding reduced the risk and I invested an amount I could afford to lose and that I could just leave for years, the minimum advised for this particular fund was 5. There is no enjoyment in this like investing in property though for me.

Alexland

It sounds like you invested in the Global Equity Fund which is 100% shares so would be more volatile than their Balanced Fund which includes fixed income and equity hedging to limit volatility.

As you say they did recommend you invest for at least 5 years after which time the market noise and volatility will be less significant and the overall trend of the investment performance will be clearer. I find the graph in the below Nutmeg article useful to see how time increases the chance of a positive result.

https://www.nutmeg.com/nutmegonomics/increasing-your-chances-of-positive-portfolio-returns-the-facts-about-long-term-investing/

Everyone is different but I much prefer an investment that avoids the hassle of dealing with tenants or managing a building project. Still if you don't enjoy it then maybe S&S investment is not for you.

Alex