HL Sipp worries

magicno1

I have or rather had 37000 in a HL adventurous growth Sipp. This last week has dropped 6500 so I am a little worried to say the least!
should I see this out or panic now and move the money elsewhere. 

This is the only pension I have and was advised to shift the fund from Aviva to a Sipp but I am now wondering wether it was the correct decision?
Some advice please and please be gentle I’m not up on shares and investments!
thanks
Chris

Albermarle

Firstly be clear that a SIPP is only somewhere that you hold your pension  investments. So moving from one pension ( Aviva) to another ( HL SIPP) in itself has no effect on the value of your pension. What matters is what the money is invested in within the SIPP.
In this case you are invested in a HL fund within the HL SIPP , which can be confusing , but again the two things are separate . For example within a HL SIPP you can buy many thousands of different investments , the vast majority are not HL funds.
You are invested in the 'Adventurous ' fund . This means it is relatively risky /volatile( as you are now seeing ) in the hope it grows a lot in the long term .
If you do not like risk /volatility, you bought the wrong fund in the first place . Now probably better to hang on and hope the markets pick up , especially if you have some years to go before you need your pension. 
Another issue can be that HL funds can be expensive - do you know what the annual charge is ?

magicno1

Not off the top of my head sorry. Thank you for the advice. 

Are you saying there are other providers with cheaper annual charges?

Albermarle

The HL SIPP platform ( that the investment is held within) charges 0.45% . HL have the most expensive platform but the service/website is very good and for your fund size you would not save that much by moving.
However the fund you have 'Adventurous growth ' is very expensive for what it is at 1.43% . I am assuming as a newbie investor you registered with the HL SIPP , had no idea what to invest in and therefore chose what HL suggested - of course one of their expensive and very profitable funds...

Suggest you have a look at this https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account
Your investments will still go up and down with the markets but you will at least save on annual charges.

dunstonh

I have or rather had 37000 in a HL adventurous growth Sipp. This last week has dropped 6500 so I am a little worried to say the least!

Why are you worried?

You chose an adventurous investment with a 50% loss potential.   You were always going to see a period like this (probably multiple if you hold it long enough).   So, now that it has happened, you should just be shrugging your shoulders and accepting it.

This is the only pension I have and was advised to shift the fund from Aviva to a Sipp but I am now wondering wether it was the correct decision?

Advisers do not use HL SIPPs.  1) because HL is too expensive and 2) HL do not make their SIPP available to advisers.

So, who gave you the advice?

tacpot12

dunstonh said:

...   You were always going to see a period like this (probably multiple if you hold it long enough).   So, now that it has happened, you should just be shrugging your shoulders and accepting it.

dunstonh is correct. When you invest is any assets whose value is determined by a market, you have to accept that market movements are a fact of life. I do wonder whether the investment industry does a good enough job of explaining that even many "Cautious" investments are going reduce in value when markets adjust to new conditions in the real world. There will be many people sitting on Cautious portfolios wondering how they lost so much money - not as much as you have lost but still a loss. But the loss will be temporary; the only question is for how long. In 2008, it seemed like the world was coming to an end, and yet within a couple of years the stock markets were nearly back to the highest levels on record.

LHW99

Albermarle said:

The HL SIPP platform ( that the investment is held within) charges 0.45% . HL have the most expensive platform but the service/website is very good and for your fund size you would not save that much by moving.
However the fund you have 'Adventurous growth ' is very expensive for what it is at 1.43% . I am assuming as a newbie investor you registered with the HL SIPP , had no idea what to invest in and therefore chose what HL suggested - of course one of their expensive and very profitable funds...

Suggest you have a look at this https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account
Your investments will still go up and down with the markets but you will at least save on annual charges.

You can probably buy the same fund(s) from HL. Their platform fee, as said above is higher (than you'd get at Vanguard / elsewhere), but until you have more invested not eyewateringly so. The Vanguard funds will cost much the same on any platform and will always be less than HL's own-branded ones.

magicno1

So am I wise to stick with HL now considering the markets or switch to Vanguard?
If so what investment plan would you recommend please?
thanks for your replies.

Albermarle

You can stay on the HL platform and switch the fund from HL adventurous to a Vanguard fund and save over 1 % a year in charges . We do not recommend products on the Forum but if you look at the Vanguard Life strategy funds you will there is a range from higher risk ( VLS 100) to low risk VLS 20 .
Alternatively you can open a new Vanguard SIPP and invest in the same funds and then transfer the HL money over . A bit more effort but you will save another 0.3% pa.

mcooke999

I think the clue was in the name of the fund you chose...

sm50

magicno1 said:

I have or rather had 37000 in a HL adventurous growth Sipp. This last week has dropped 6500 so I am a little worried to say the least!
should I see this out or panic now and move the money elsewhere. 

This is the only pension I have and was advised to shift the fund from Aviva to a Sipp but I am now wondering wether it was the correct decision?
Some advice please and please be gentle I’m not up on shares and investments!
thanks
Chris

This is what I am pondering at the moment. I have an Aviva pension with a transfer value of 23k. At least that was the value 2 weeks ago, and I was seriously considering moving to a HL SIPP, I had even got the paperwork ready. But now for very obvious reasons I am having second thoughts.

I am very new to this so am still learning a lot the one thing that I am wondering is whether I should still go with the SIPP but have it sit as cash for now and only invest when things start to pick-up.