Pension loosing money

deepam

Hi,

My workplace pension is invested in StandardLife 'SL JP Morgan Natural Resources Pension Fund' (GB00B61JR401) which is going down everyday. In total in last few months I have lost 20K (around 15%) of my pension. Are there any experts on this forum to advice if this funds is forecasting to be good in future or should I consider changing the fund?

Thanks

JoeCrystal

There are a lot of posts complaining about the pension losing money at the moment; it might be worth looking at these posts as well. No one will give you advice, just opinions, although I am surprised personally that SL JP Morgan Natural Resources Pension Fund is a default fund or 100% invested? What was your reason behind choosing this fund, and is the reason still valid?

deepam

It is 100% invested. Could you please explain the difference when you say default fund or 100% invested. The reason I chose this fund few months back was looking at the fund performance, nothing else

JoeCrystal

deepam said:

It is 100% invested. Could you please explain the difference when you say default fund or 100% invested. The reason I chose this fund few months back was looking at the fund performance, nothing else

I was under the impression that it may be an auto-enrollment default fund, not bad, not good either. That is an awful reason to choose the fund, by the way. In that case, and looking at the performances over the last few years, I would say your losses is to be expected and, indeed, can and will be worse. But then, you knew the risks anyway.

older_and_no_wiser

That fund seems quite concentrated. Ie.. Almost 50% of the fund is invested in just 10 companies. It's not surprising that it will be volatile. However, the objective of that (and virtually all funds) is to make money over the long term (5-10 years). Maybe try to stop checking its value so often and just let it do its stuff. I'm assuming you're investing every month into it as it's a pension fund? If so then you should benefit over the long term by pound cost averaging and currently you're buying into it at a discount each month.

Alternatively, if you can't take the stress of this bear market impact, perhaps consider a more diverse approach like a global multi asset fund like HSBC Global Strategy or Vanguard LifeStrategy? Most of these funds have different levels based on how cautious or adventurous your approach is.

....or just invest in the  world with something like a global equity tracker such as Fidelity World P or Vanguard Global All Cap. There's no bonds exposure but many will argue that bonds aren't the diversification they once were.

These are all just suggestions. You really need to do research and learn about the options. Start to manage your own understanding of what you want to achieve and how.

JOHNBOY42

its a storm........ not the first and wont be the last..... ride it out

wjr4

deepam said:

Hi,

My workplace pension is invested in StandardLife 'SL JP Morgan Natural Resources Pension Fund' (GB00B61JR401) which is going down everyday. In total in last few months I have lost 20K (around 15%) of my pension. Are there any experts on this forum to advice if this funds is forecasting to be good in future or should I consider changing the fund?

Thanks

Who chose this fund?

SouthCoastBoy

A percentage of my pension is invested in the JPM natural resources fund, not sure if this is the same fund as you mentioned, but under a different share class?

Looking at the H&L performance, in the last 12 months the JPM Natural Resources fund has gone up 26.12%

JoeCrystal

wjr4 said:

Who chose this fund?

deepam did, apparently; the sole reason for the choice is its past performance. 

dunstonh

My workplace pension is invested in StandardLife 'SL JP Morgan Natural Resources Pension Fund' (GB00B61JR401) which is going down everyday.

Wow.  That is a gung ho choice.   A fund like that is highly volatile.  It is one of the highest risk funds there is.   The fund is a type that is designed to be held in a wider portfolio funds with perhaps no more than 5% allocated to it.

This fund can double its money in a year or lose more than half or more of its value in a year.     What made you pick such  a fund?

Prism

Sell it and select something much more diverse. Never choose a fund on past performance.