Lost 8% on L&G PMC Multi-Asset 3 in 6 months

paulmol

Anyone have the same experience with L&G L&G PMC Multi-Asset 3 ?
lost 8% since jan 22 and still being charged management fees !

MallyGirl

Why would you not still pay fees?
have you seen what the stock market is doing at the moment?

QrizB

paulmol said:

Anyone have the same experience with L&G L&G PMC Multi-Asset 3 ?
lost 8% since jan 22 and still being charged management fees !

Congratulations on only losing 8%, there's someone in another thread who's lost over 50%!

NannaH

My ISA ( lump sum in October) is down 15% this year, annoying but there you go🤷  

gm0

Do not panic (yet).

I track this fund in one of my trustnet portfolio monitors.  

What matters is how this behaves longer term and also how it behaves relative to what ? i.e what else you would do that fits your risk appetite.

This multi-asset has been negatively affected by bond market shift (interest rate rise (no longer falling but rising) and expectation of more rises = capital losses for bonds - more for longer duration this is not speculators or market froth - just how bonds work vs interest rates) and also impacted along with other funds by negative returns for some equities especially the tech stocks, growth, US element.

I track it on trust net for a portfolio I look at - numbers since mid February 2022 to date

L&G Emerging Markets Index Pn    -8.88     (The EM covered by this L&G fund having a tough time)

L&G Smaller Companies Index Pn    -3.00   All equities - down 3%

L&G Multi Asset PMC Pn 3            -3.23%    (the fund you are asking about)

L&G UK Equity Index PMC Pn 3               0.20%  (UK equities, large cap)
L&G World Ex UK Equity Index PMC Pn 3        -2.75% (World developed equities large cap)

So as we sit for the last quarter - the multi-asset has currently done worse than a blend of 100% equities - World ex UK + UK   Because - bonds. Whether that will continue and for how long is impossible to guess.  Events dear heart.

Example when there is a stonking downward repricing of equities valuations P/E more generally the World ex UK and UK indexers will plummet severely.  The expectation is by more than the Multi-asset 3 - again because of the bonds (and other bits and bobs in the multi-asset). 

That's the expectation of such a fund.  Bit less volatile over the cycle in return for some potential equity growth foregone.

Will it be true for the next cycles.  No idea.

Hold onto your hat

Marcon

paulmol said:

Anyone have the same experience with L&G L&G PMC Multi-Asset 3 ?
lost 8% since jan 22 and still being charged management fees !

If the fund has only lost 8%, nothing much to worry about.

Of course you're being charged fees; that's what you signed up for - but presumably they are a %age of fund value, so lower than they'd be if you had gained. The provider still has all the costs of running the scheme whatever the fund performance.

dunstonh

Anyone have the same experience with L&G L&G PMC Multi-Asset 3 ?
lost 8% since jan 22 and still being charged management fees !

it is nothing to do with the fund.  Everyone is down.  8-15% is typical.
You may have heard about the Russian invasion of Ukraine and the cost of living crisis.

Why would they not charge fees?   L&G have a job to do and they are doing it.   They cannot control how things go up and down.

mcc100

paulmol said:

Anyone have the same experience with L&G L&G PMC Multi-Asset 3 ?
lost 8% since jan 22 and still being charged management fees !

It's the default fund for my workplace pension and has a management fee of 0.13%, which seems reasonable.

I'm salary sacrificing the maximum amount allowed prior to my intended retirement in 2 1/2 years, so I'm not too fussed about the recent fall in value.

westv

At the moment it's just numbers. It only becomes a loss when/if you sell.

UrbanAchiever

paulmol said:

Anyone have the same experience with L&G L&G PMC Multi-Asset 3 ?
lost 8% since jan 22 and still being charged management fees !

Are you still paying into this fund?

paulmol

UrbanAchiever said:

paulmol said:

Anyone have the same experience with L&G L&G PMC Multi-Asset 3 ?
lost 8% since jan 22 and still being charged management fees !

Are you still paying into this fund?

no not at the moment , its an work place pension , ironically from when i worked at L&G, current employer is with Aviva. The reason of the question is the Aviva one has gained over what i have paid in, not by much but it has gained even with the fees