Sipp returns

johnnyren

Hi
My ifa invested around 400 000 of my pension pot into the prudential trustee investment series a plan , the remainder in a standard life wrap , this is the second year of investment and I’ve made 4000 pounds in that time . This has caused no end of hilarity to fellow workmates who invested elsewhere, pretty much all of them went with a fa who invested there pots with prudential .
They are all claiming returns of 20 000 on similar sized pots . I will be meeting my ifa soon to discuss things with him , do I have cause for alarm here ? I’m all for caution but Am I missing out ?

Thanks

MallyGirl

last year was a poor one for investment returns generally

TBC15

It doesn’t take too much imagination to make returns before costs of 10% over the last 24 months and 7% over the last year.

fjh

I too am very frustrated with returns on Pro funds - I am waiting till 25 Aug when next review is due - Hoping returns will increase then

Prism

Last year was pretty up and down. Depending on exactly when you invested would possibly have a large effect on your gains so far.

SeniorSam

Jonnyren ............. Similar amount in a Sipp with HL with 4 Funds and one Investment Trust - from April 2018 to Apr 2019 maximum growth £47,181 having drawn £10k out. However between April 2018 and December 2018 it was down by £13,068. From April 2018 to now, up by £57,283 after the £10k drawn. Happy with my results although I know others have done better and I expect it to go down and up again in the next year.

johnnyren

How can it be so low ? As I said , my workmates all went with a fa I personally didn’t like the look of and he’s returned a profit of close to 40 thousand over the 2 years , and it’s the pru he’s invested there funds in .
I went with a recommended ifa who puts the same amount in to this pru trustee series a package and I make 4000, he’s probably making the same if not more than me on his fees , Not happy at all

fjh

I understand that Pru has different ‘versions’ with differing rates - I know someone that incest app 12 months before me making app 6% mine in @ .76% ☠️

Prism

johnnyren wrote: »

How can it be so low ? As I said , my workmates all went with a fa I personally didn’t like the look of and he’s returned a profit of close to 40 thousand over the 2 years , and it’s the pru he’s invested there funds in .
I went with a recommended ifa who puts the same amount in to this pru trustee series a package and I make 4000, he’s probably making the same if not more than me on his fees , Not happy at all

Are the investment dates exactly the same? Are the two funds different risk levels? - it can make a huge difference.

Aretnap

From a quick Google the Prudential Trustee Series A package is not a fund - is a pension offering a number of different fund choices. Depending on what you told your IFA about your goals for the money and your willingness to take risks your money could be invested mainly in bonds (which would not give dramatic returns but would have little risk of dramatic losses either) or mainly in shares (which would much higher returns... in the good years at least). It's not really useful to compare your returns with those of your colleagues unless you know that they are investing in the same at classes, have the same attitude to risk etc as you.

So what is your money actually invested in?

[Deleted User]

1. You should not be comparing pounds returned on different investments with different risk tolerance and investment policies

2. Annual returns in general are meaningless. You don’t really know if your investment strategy is working until you can look at the multi-year performance

3. The way to compare returns is by looking at time-weighted returns over the same period of time.

4. The way to evaluate performance of a particular fund is by comparing it to the benchmark. Again, 1 year won’t tell you much.

5. One thing you can look at is investment risk profile, asset allocation and if it corresponds to your risk tolerance and needs. The other thing to look at is costs; minimizing costs is very important as this is the one component of your returns you can control.

If it was me, I’d read a book or two and make decisions without an IFA. Decisions should only ever be made by you as you are the one to live with the consequences