Legal & General Flexible Mortgage Plan - Drop of 15.75% in 6 Months?

Issac_Hunt

Good afternoon all,
I received my Bi-annual Statement today (the last one recieved in February) which reveals that my ISA Value has dropped by a considerable amount! For what it's worth the ISA is over 20yrs old. I was expecting some sort of fluctuation but this is well outside what I would call acceptable!

Their phones are now closed until Monday so I do have time to cool off before I go in with both barrels blazing, hopefully to find out they've made an error but in the meantime has anyone else seen similar? I'm already priming something to send off to the Financial Ombudsman just in case.

tom9980

The FTSE 100 is down about 18%-20% since February, I have no idea what you are invested in but 16% does not sound bad at all, merely average I would say since the pandemic has damaged economies all around the world.

Albermarle

All investments can go down as well as up , so you can put both barrels down and forget about any Financial Ombudsman. Maybe some points to consider
1) A certain virus has had a serious effect on the global economy 
2) If it has really dropped 15% between February and now , then it must be invested in high risk investments , as most medium risk investments have largely recovered. Maybe it is is 100% equity ? In which case you should have seen good growth over the 20 years
3) Possibly it is largely invested in UK stock market , which has suffered more than most .

Thrugelmir

[Edited by Forum Team]

 Never advisable to hold funds designated for a specific purpose in stocks and shares. Totally unsuitable. S&S are for the longer term. Expensive way of learning a lesson. You'll now be wiser in future. 

dunstonh

 was expecting some sort of fluctuation but this is well outside what I would call acceptable!

It depends on where you are investing.  If you are 100% equity then a loss of up to 50% would not be unusual.  (both dot.com period and credit crunch were around 45% loss periods).  The CV falls were around 35%.

I'm already priming something to send off to the Financial Ombudsman just in case.

On what basis?  Nothing you have said suggests anything wong as far as L&G are concerned.  Their fund range has had no losses outside of expectation.
Most people with a balanced portfolio (i.e. an asset spread of UK, US, Europe etc) will be back to around January values.  Some a little higher. Some a little lower.   The only reason you would be a lot lower is if you are heavy in UK equity (e.g. A FTS100 tracker).  But that would be poor quality investing and poor choices.