How are your pension pots doing

Simon11

My UK pension pot has now restored to the amount that I have invested into it after paying into this pot for three years.

My ISA which I set up a year ago is still down 4% and my American pension is still 7% down from 12 months ago.

[Deleted User]

gh67 said:

Deleted_User said:

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.

Well, did your advisor tell you what his strategy and asset allocation were and why?  If not then you should ask. 

Did your portfolio have the same funds a year/two years ago?  If so, your advisor owes you an explanation.  For example it was certain that long-term bonds sitting in your portfolio in 2020 and 2021 were going to perform very poorly over their lifetimes.  The exact timing of bond losses was not knowable with any certainty.  The tight coupling between interest rates and bond returns is what made it possible to see the brewing problems. Bond yields tell you exactly what average return you’ll get over the life of the bond.  This is true whether you own that bond on its own or blended into a fund. And when the yield is next to zero, well below inflation then a problem will hit.  

Why didn’t he get rid of assets which were guaranteed to make a loss?  I can understand that people with a single low cost fund combining stocks and bonds don’t have this kind of flexibility.  But this portfolio has 2% fund allocations, so what stopped the advisor from making the changes? 

Since opening the fund I haven’t put any money into it so yes same funds if that’s what you mean. 

At the end of 21 it had increased roughly 20% from its initial investment, now it’s only about 7% above its initial investment. I’m still in profit I just think it could be doing better, I won’t be touching it for another 5 years minimum so want to make sure it’s in the right place going forward. 

If I’m honest I’m having my doubts about the IFA, is it an easy enough job to change them. 

Did you:

1. hire an IFA 5 years ago for a one-off service to set up your portfolio and then dispensed with his services or
2. Hire an IFA 5 years ago for  ongoing advice for an annual fee? 

In case of 1 the portfolio is completely inappropriate because its unnecessarily complex and hard ti manage/change.

In case of 2 the advisor should have told you to disinvest from long term binds a couple of years ago.  

In both cases the strategy and asset allocation behind portfolio build up should have been communicated to you in some way.  

leosayer

Performance is +39% for the 5 years since 1st Jan 2018. Last year I was down 7%. 

In absolute value terms (including contributions) it's +61% and +4%.

This is from being invested almost exclusively in global equity index trackers, however all my future contributions are being directed towards short-term bond index tracker funds with a view to retirement in around 3 year's time. 

Whilst tracking the absolute and relative performance of funds can give you some insight, it doesn't help you ensure that you have you have implemented the correct strategy to meet your financial plans.

older_and_no_wiser

Intoodeep said:

I have an investment with Prudential Prufund Growth Fund Series E, which is up 2.6% in 2022

I think that fund is heavily in UK investments. The FTSE 100 has outperformed most other markets last year as it's heavily weighted with oil and energy companies.

Albermarle

older_and_no_wiser said:

Intoodeep said:

I have an investment with Prudential Prufund Growth Fund Series E, which is up 2.6% in 2022

I think that fund is heavily in UK investments. The FTSE 100 has outperformed most other markets last year as it's heavily weighted with oil and energy companies.

I presume this should mean it has missed out on some growth over the recent decade. On the other hand its relative good performance in 2022, has meant 5% annualised growth over the last 5 years, so not bad for a steady middle of the road pension fund. 

Nebulous2

Our investments dropped 8.4% in 2022. Our realisable assets dropped 2.9%. 

In other words, I'm drawing a DB pension, am working 1 day a week, which comprises our entire household income, with 6 years still to go until SPA, and we continued to accumulate, mainly in my SIPP. 

That's with running two vehicles, a fairly big caravan and two trips to Tenerife. It feels as though we are fairly well placed financially to deal with this retirement thing....   

Brenster

For purposes of comparison my Scottish Widows Medium Risk was 11.80% up, between Jan 21-Dec 21, then 11.02% down Jan 22 - Dec 22, so almost levelled out over the past 2 years (excluding any inflationary allowances) 

Rob749

My SIPP and S & S ISA are down 2.6% since I invested it in 2018, but they are all income funds (12 Global, European and UK  mix of stocks and bond funds) and have been drawing the income only - about 3-4% every year since then.  Originally set up by HL advisor over the phone. Best performers are the Global and Asian funds both for capital gain (25-30%) and dividend income (4-6%), obviously some of the others are dragging the portfolio down.

[Deleted User]

I am -1% in both money and time weighted rate of return for 2022 (in GBP).  Portfolio is 70% equity, 30% fixed income.  Normally passively managed but in 2021 I got rid of long duration bonds with the exception of some TIPs. Now moving back into bonds.  Also helped somewhat by a tilt to small/value. 

Cus

My main SIPP (which is managed by a wealth management firm) was down 12.7% after costs in 2022. Disappointing.