Investment Returns 2020

Thrugelmir

One years figures in isolation are meaningless. Three years as a minimum.  BH is an investment company and as such isn't comparable to that of a retail investor. Investment time horizons being very different. 

If you don't want to crash and burn. Take the time out to research what you are investing in.  I've survived for over 40 years. Despite all the same old chesnuts making a regular reappearance. More often or not the time to go fishing is when the mantra is negative. The more volatile markets are the easier it is for a retail active investor to profit from trading individual shares and investment trusts.  

VXman

13% over all here in a  mix of VLS and a couple of HL funds.  Overall was squewed massively by 32% growth of HL Global growth fund. I know HL aren't cheap (1.1% for this fund including the .45% platform charge) but 32% makes up for it.

darkidoe

Alexland said:

darkidoe said:

I have a portfolio return of about 6.9% in 2020 and a personal annual return of 9.4%.

Seeing at an FTSE All World Index had a return of approximately 12% in 2020. My returns didn't seem so great to me. I guess mainly because of my tilt towards the VHYL which had a slight negative performance this 2020.

Food for thought for dividend investors. Might be better to go with an all world tracker.

Passive income trackers have a very poor history as the data drives the algorithm to mostly invest in dividend trap companies with flawed business models. It's a market where an active manager can provide value. Particularly with an IT structure where they can use leverage and have additional freedom to build a more diversified portfolio merging income and growth while providing smoothed dividends. The ongoing charge on VHYL at 0.29% is already roughly enough to pay a good value active income manager.

I see. Interesting, I will need to look into this and compare it to income funds.

NedS

If we are sharing are losses too, here goes:

RDSB - down 30% (excluding 2 rather smaller than anticipated dividends). I'm keeping it for now (a) in the hope of a recovery in price, and (b) to remind me why I shouldn't buy shares in individual companies.

RDI (REIT) - down 29% on the year. Again, keeping it for now as (a) I'm hoping for a share price recovery and (b) it's still giving me some income on it's dividend. To be fair it's been a dog for the last 5 years, but every year I read their annual report and think, hey, they are doing a great job and this is the year things will turn around. See (b) above!

In both of the above cases I probably would have done better chasing the falling knife as both have recovered significantly off of their lows, but that doesn't always end well either

Thrugelmir

Fortunately negatives are low for me currently. Out of 65 holdings , 12 are in loss. Worst is Lloyds a more recent addition at -8.1%. Others worse than -1.0% are Glaxo,Shell, HSBC, Experian, Nestle and Chesnara. 

mark55man

I think LLOY will come good.  and sooner rather than eventually, but not immediately - and it now seems to attract a lot of froth on other bulletin boards and a lot of market making action.  But in the long run, and when dividends have returned and the new CEO has settled in, I think the numbers (weighing machine) will take this back to where it started 2020 by the end of this year.  Beyond that hard to tell  

Thrugelmir

mark55man said:

I think LLOY will come good.  and sooner rather than eventually, but not immediately - and it now seems to attract a lot of froth on other bulletin boards and a lot of market making action.  But in the long run, and when dividends have returned and the new CEO has settled in, I think the numbers (weighing machine) will take this back to where it started 2020 by the end of this year.  Beyond that hard to tell  

No reason why the dividend won't be reinstated when the full year 2020 results are announced. Albeit at a lower rate than previously initially.  A domestic recovery play now that the vaccine roll outs are underway.  

michaels

Prism said:

Here is a completely anecdotal example of where some of the poor returns are. 
Last year Vanguard LifeStrategy 80 returned 7.7%. It contains around £5bn in assets.
Scottish Widows default pension fund, pension portfolio 2, is very similar in make up (roughly passive 80/20) and eats up a huge chunk of money from lots of UK workplace pensions. The fund manager looks after around 120 other funds. Last year it returned a pretty poor 3.2% using index trackers. Now the platform fee is included in that but even still. Over any time period it seems to underperform. Size of the fund is around £19bn in assets. Thats nearly 4 times the amount of money that is in VLS80, sat underperforming year on year and nobody cares.

In June I finally saw the light on SW Pen Port 2 (over fees as well as investments) and moved most of my funds to a 70/30 mix of global index tracker and moneymarket as a volatility hedge.  Net result I underperformed even the SW fund overall as most of the global recovery came in Q2 whereas the UK finally came back in Q4 which I missed too and GBP strength also reduced my global gains.

You lose some, you lose some

falsewidow

Three pots for me all managed differently. Largest one medium risk basket of defensive equities FTSE and elsewhere including Americas and Europe, dropped a third in the crash and reached a high 20% above the previous peak on the 31st Dec. Middle pot playing it safe, positioned to 70% cash after the crash but only down 10% overall (timed my exit) and up 10% above the previous high with only a 30% exposure to equities and then my wildly speculative smaller pot in £s went from £25k to £19k and finished the year at £38k - I wouldn't be able to stomach those kind of swings with the other pots but it was interesting to see it play out. 

newatc

I was in the process of reducing the risk in my funds when the pandemic started which added impetus to the process which led to selling at a low point in some cases and my annual returns are a non impressive 3.5% but I'm comfortable with my lower risk funds with my septuagenarian profile and not concerned that I significantly trail others on this board.