ISA Lost £3K in 6 Months - Stick or Switch ?

RocketRonnieRadox

Hi All,

I have an ISA that is stocks and shares type diversified over some top UK funds such as framlington monthly income, framlington ~UK select, Artemis UK smaller companies, Schroder UK mid 250, Schroder UK opportunities, Fidelity Global, Fidelity special situation, Invesco Corporate, Invesco High income M&G Recovery and Meridian UK Mid Cap.

This fund has lost some £6K over the past year.

I have recently been looking at moving this in to another fund that is more focused on offshore companies and equities in anticipation of brexit losses. This fund is the HSBC world select balanced and dynamic porfolio that is a global investment funds rather than UK.

Im now at a crossroads - do I weather the storm and take the losses I have experienced this year or do I move to the global fund ?

Any advice gratefuly received.

A_T

It looks like you're mostly in UK listed shares. I would never want to hold more than 20% UK.

JoeCrystal

£3k of what? How big is the fund? I mean, £3,000 of £300,000 is a daily market change compared to £30,000 for example.

Shashy

You haven't 'lost' anything unless you sell and crystalize the now-lower value.

What's your objective with these investments?

dunstonh

I have an ISA that is stocks and shares type diversified over some top UK funds such as framlington monthly income, framlington ~UK select, Artemis UK smaller companies, Schroder UK mid 250, Schroder UK opportunities, Fidelity Global, Fidelity special situation, Invesco Corporate, Invesco High income M&G Recovery and Meridian UK Mid Cap.

A portfolio with a large number of single sector funds would likely be in excess of £100k. You dont mention the amount so we can only guess. However, you dont tend to build a portfolio of single sector funds when investment amounts are low unless you dont know what you are doing.

Investment value is important as it allows us to place the scale of loss in context. Are we talking about 5% or 50% or whatever.

I have recently been looking at moving this in to another fund that is more focused on offshore companies and equities in anticipation of brexit losses. This fund is the HSBC world select balanced and dynamic porfolio that is a global investment funds rather than UK.

HSBC World selection funds were introduced originally for the HSBC sales staff to sell to low knowledge customers in their branches. It is also why they are so expensive. Why would you want to move to those?

- do I weather the storm and take the losses I have experienced this year or do I move to the global fund ?

What has changed since you started investing?

When you started investing, we assume you knew that there will be negative years and nothing years as well as growth years? And that negative periods would happen on a fairly regular basis.

We have a relatively minor period of loss and suddenly you are looking to change things. So, what has changed since you first invested?

ColdIron

A mostly UK portfolio is pretty poorly diversified so widening your net to include other geographies (US, Europe, EM, Asia etc) and industry sectors (not much tech or manufacturing in the UK) would make sense. The HSBC World Selection range has a high charge for what it is and you might want to look at HSBC's Global Strategy range which does much the same thing but with a quarter of the costs. Your UK portfolio has dipped but so have global funds so switching some or all from one to the other wouldn't be be the absolute loss that switching to cash would be

RocketRonnieRadox

Thanks for the replies.

To put it in to perspective my fund was worth £35K at this time last year and is now worth £29K

The objective is a long term investment over 15 years to pay off a mortgage.

The fund I am in now is unmanged - that is a little worrying.

The reason for moving to HSBC World select was purely down to the advice given by the HSBC Premier Advisor - I am not knowledgable in these matters hence I took advice but it is increasingly looking like a sale for the HSBC advisor who told me that only premier customers have access to these funds and that they are multi million pound funds expeosed to less risk

droopsnoot

I went through a similar situation when I first went into S&S ISAs - I think my first statement was reasonably OK, but my next showed massive drops in value (IIRC a higher percentage than your drop), which of course concerned me. I stuck with it precisely because abandoning it would have made the drop concrete, and now it's recovered, though of course there was another drop just recently. I'm just in some fairly average funds that Nationwide sold me back when they did that kind of thing.


It sounds as if you're just unlucky on timing, as I was.

verybigchris

RocketRonnieRadox wrote: »

The reason for moving to HSBC World select was purely down to the advice given by the HSBC Premier Advisor

The best fund for you just happened to be the one the adviser was selling - what are the odds?!

coyrls

RocketRonnieRadox wrote: »

The fund I am in now is unmanged - that is a little worrying.

What do you mean by "the fund I am in now is unmanaged"? All the funds you have mentioned are managed. Do you mean that your portfolio was originally managed by an advisor of some kind but is no longer managed by that advisor? Who made your original selection of funds and what were the reasons for their selection?

[Deleted User]

Hi,

RocketRonnieRadox wrote: »

Hi All,

I have an ISA that is stocks and shares type diversified over some top UK funds such as framlington monthly income, framlington ~UK select, Artemis UK smaller companies, Schroder UK mid 250, Schroder UK opportunities, Fidelity Global, Fidelity special situation, Invesco Corporate, Invesco High income M&G Recovery and Meridian UK Mid Cap.

This fund has lost some £6K over the past year.

I have recently been looking at moving this in to another fund that is more focused on offshore companies and equities in anticipation of brexit losses. This fund is the HSBC world select balanced and dynamic porfolio that is a global investment funds rather than UK.

Im now at a crossroads - do I weather the storm and take the losses I have experienced this year or do I move to the global fund ?

Any advice gratefuly received.

Ok, back end of last year was bad, chill.


The objective is a long term investment over 15 years to pay off a mortgage.


Do you have an interest only mortgage?


The fund I am in now is unmanged - that is a little worrying.

The reason for moving to HSBC World select was purely down to the advice given by the HSBC Premier Advisor - I am not knowledgable in these matters hence I took advice but it is increasingly looking like a sale for the HSBC advisor who told me that only premier customers have access to these funds and that they are multi million pound funds expeosed to less risk


bank employees, whether FA, Premier Advisor or the wee girl on the counter get commission on selling own products.QUOTE]


I've always gone independent, some winners some losers, chance you take.