How are your pension pots doing

gh67

Without knowing how much money anyone has I’m just wondering if pots have started to recover, I feel my pot isn’t performing as it should. I totally get the issues with Covid and now we’re in a recession, in the last 5 years my pot has reached a high of 20% increase but now sits at around 7% from the initial amount 5 years ago. 

Does this look about normal as I have nothing else to compare it with and when you tend to ask people you know I find few will admit if theirs is doing bad. 

Thanks in advance 

NoMore

Don’t worry about others, that’s a dangerous game. As they may be investing at higher risk than you are comfortable with. You then begin to chase performance to keep up with the jones and ultimately harm your returns. 

The important questions is are YOU happy with your current portfolio and it’s asset allocation? And is it meeting your current risk acceptance ? 

gh67

Thanks for the reply, I’m not really worried about what anyone else has I just don’t think mine is performing as good as it should, I just don’t have anything to compare it against so I know if it’s doing good or not. 

NedS

gh67 said:

Thanks for the reply, I’m not really worried about what anyone else has I just don’t think mine is performing as good as it should, I just don’t have anything to compare it against so I know if it’s doing good or not. 

What are you invested in? As a suggestion, try to find a comparable index to compare your performance against. For example, if you are invested completely in globally diversified equity, comparing performance to the MSCI World Index or FTSE World Index may be appropriate. Alternatively, if you look up the fact sheet for the funds you are invested in, they often cite a benchmark that they compare themselves against, or a goal they aim to achieve such as beating a certain metric over a 5 year period which you can use to determine if they are performing as expected, but it is dangerous to look at performance over short term periods where volatility is high (e.g, the FTSE100 jumped 2% this morning when markets opened).

dunstonh

I’m not really worried about what anyone else has I just don’t think mine is performing as good as it should, I just don’t have anything to compare it against so I know if it’s doing good or no

Performance is relative to risk.    Over the last 14 months, tech stocks, emerging markets and gilts have fallen heavily.    This could mean that the very lowest risk people and the very highest risk people have lost higher amounts than those sitting in the middle.

[Deleted User]

It makes sense to benchmark against portfolios with similar asset distribution.  But to do that you’d need to say what you are invested in and specify your returns. 

On a side note, I like statements suggesting that “people with very low risk” portfolios have lost a lot of money. Seems like a contradiction in terms.  Bonds = very high risk when they pay zero in an inflationary environment.  People who had a lot of long term bonds a year ago had HIGH RISK portfolios.  Curious how many advisors told those “low risk” clients to ditch gilts. 

gh67

dunstonh said:

I’m not really worried about what anyone else has I just don’t think mine is performing as good as it should, I just don’t have anything to compare it against so I know if it’s doing good or no

Performance is relative to risk.    Over the last 14 months, tech stocks, emerging markets and gilts have fallen heavily.    This could mean that the very lowest risk people and the very highest risk people have lost higher amounts than those sitting in the middle.

Im in the middle of the road with some slight above.

gh67

InvestmentAllianz Gilt Yield Inc -U	2.96%
InvestmentAXA Framlington American Growth Acc -U	10.07%
InvestmentVanguard (IE) Global Bond Index Acc -U	4.05%
InvestmentVanguard (IE) Japan Stock Index Acc -U	5.11%
InvestmentFidelity Cash OEIC Acc -U	11.98%
InvestmentFidelity European Acc -U	5.16%
InvestmentHSBC American Index Acc -U	10.13%
InvestmentInvesco Asian (UK) Acc -U2	4.28%
InvestmentL&G Global Emerging Markets Index Acc -U	4.03%
InvestmentL&G UK Property Feeder Acc -U	4.61%
InvestmentLF Lindsell Train UK Equity Acc -U	8.28%
InvestmentLiontrust Sustainable Future UK Growth Acc -U	7.99%
InvestmentMan GLG Undervalued Assets Acc -U	7.20%
InvestmentRoyal London Corporate Bond Acc -U	4.10%
InvestmentSchroder Sterling Corporate Bond Acc -U	3.09%
InvestmentVanguard UK Inflation Linked Gilt Index Acc -U	2.95%
InvestmentAXA Sterling Credit Short Duration Bond (Gross) Acc -U The above is what I'm invested in, from the same date last year I am down just under 13%

[Deleted User]

How did you pick this selection? What was the strategy/logic/intended asset allocation?

gh67

Deleted_User said:

How did you pick this selection? What was the strategy/logic/intended asset allocation?

I have an FA and as I know nothing I was advised by him. I wouldn't dream of doing it myself or where to start.

Dazed_and_C0nfused

gh67 said:

Deleted_User said:

How did you pick this selection? What was the strategy/logic/intended asset allocation?

I have an FA and as I know nothing I was advised by him. I wouldn't dream of doing it myself or where to start.

Have you considered using an IFA?