S&S ISA Portfolio help please 10 March at 1:17PM edited 10 March at 1:21PM in Savings & investments 32 replies 2.3K views

Neversurrender

I have 3 Stocks and Shares ISA's in my AJ Bell ISA portfolio

I opened this Portfolio in January 2022, and invested just before things started to drop in value due to global trading conditions etc.. Bad timing 😪 

Currently my portfolio is down in value, and I am not seeing much of a gain, over the last 14 months since I started.

When I look at basic fixed savings accounts which I have savings with I see 4.5% interest, but when I look at the portfolio I have below I am seeing losses which are staying as losses, with hardly any upward movement in value

My heart says move them from stocks and shares ISA' to savings accounts but as we all know that then crystallises losses!

My head says keep it all invested, it will pick up soon....problem is its not moving very much in an upward direction.

As a new investor I guess I am calling on all you seasoned investors for advice please.

I'm not in any hurry for the funds. But I'm struggling to see any light at the end of the tunnel. Do you think based on previous experiences you may have, that this will pickup?

I guess I am seeking some form of reassurance from you folks who are more experienced on these matters.

Its quite disheartening to see such losses.

These are the funds in my portfolio listed below.

Royal London Sustainable Div C Acc (Is a mixed investment 20-60% shares)
Down since January 2022 by £1,437.52  (-6.22%)

HSBC Global Strategy Conservative Portfolio Ac  Down since January 2022 by £1,481.30  (-7.32%)

Vanguard Lifestrategy 60% Equity A Acc Down since January 2022 by £1,414.46 (-6.32%)

Many thanks for looking, any advise greatly appreciated 

jimjames

You've only been invested for little over a year so that's far too short a time to judge but it does sound like the volatility of investments might not be for you if you're worried about drops even though the drops are not much more than 5%. If you were investing monthly then you'd be buying more of the investments at a lower price and when the price rises you'd be sitting on a profit.

MX5huggy

Your 3 funds (why 3? If you plot them on a graph I bet they are much of a muchness). Are heavy in bonds, corporate and government. These have taken a kicking they are supposed to provide shelter and reduce risk but your timing has been perfectly rubbish for this asset class. They are back to doing their job but will take years to recover. Do some more research understand what you have then go to a higher equity allocation with maybe some cash savings as well if you don’t have cash. 

Linton

Yes, you were unlucky with your timing having bought your portfolio at when the markets had just reached a peak. You were then hit with a double whammy of both the equity side falling and also bonds suffering badly because of the fall in interest rates.  Given the conditions, only 6-7 % down is reasonable.

In my view your funds look  sensible. though perhaps the HSBC fund is a little over cautious compared with the others.  You could cut your portfolio down to 1 fund - the other 2 are similar.

I suggest you carry on as you are, monitoring perhaps once a year.  14 months is far too short a time for the underlying trends to be apparent and not overwhelmed by the noise. A  6-7% rise or fall in a year is not unusual.   You do need to get used to that level of volatility if you are to make the long term gains that investing can provide.

older_and_no_wiser

Yes, these are bonds heavy funds. Personally, if I had 7+ years to invest, I would sell all of them and change to something like HSBC Global Strategy Dynamic (if you want a less bond rich fund) or if you want the potential for better growth (but possibly more swings up and down if you can stomach that) a global equity tracker like HSBC FTSE All World Index.

However, this is your decision and you need to be familiar with what you're investing in and come up with an approach/plan.

dunstonh

When I look at basic fixed savings accounts which I have savings with I see 4.5% interest, but when I look at the portfolio I have below I am seeing losses which are staying as losses, with hardly any upward movement in value

An economic cycle is around 15 years.  Why are you looking for the returns normally averaged out over an economic cycle of 15 or so years  in a period of 14 months?

When you invested, you almost certainly knew that there would be positive periods and negative periods.   Your timing is unfortunate but as you knew this could happen, what has changed now to make you think it isn't a good idea?

I'm not in any hurry for the funds. But I'm struggling to see any light at the end of the tunnel. Do you think based on previous experiences you may have, that this will pickup?

With hundreds of years of markets, it always does. Time is the key.

These are the funds in my portfolio listed below.
Royal London Sustainable Div C Acc (Is a mixed investment 20-60% shares)
Down since January 2022 by £1,437.52  (-6.22%)
HSBC Global Strategy Conservative Portfolio Ac  Down since January 2022 by £1,481.30  (-7.32%)
Vanguard Lifestrategy 60% Equity A Acc Down since January 2022 by £1,414.46 (-6.32%)

Those are very small drops.    If you are already nervous with a small drop then you perhaps need to reconsider.  These are capable of much bigger losses.  15-25% would be the typical loss during a strong negative period (which will happen at some point).

Also, the low point was October.   Values have increased since then.  So, why are you nervous now but not back in October?

Yes, these are bonds heavy funds. Personally, if I had 7+ years to invest, I would sell all of them and change to something like HSBC Global Strategy Dynamic (if you want a less bond rich fund) or if you want the potential for better growth (but possibly more swings up and down if you can stomach that) a global equity tracker like HSBC FTSE All World Index.

That may suit you but I am not sure that its a good idea for someone that is already struggling with the tiny 6% loss,  HSBC GS Dynamic has around 40% loss potential.   

Neversurrender

@dunstonh
Many thanks for your reply, and to the others also.
If I may just highlight your point in bold.

Although I appear nervous about this, I am willing to give this time to perform, and if it is most likely to perform over say 10 years time  then I'm not really worried
I guess because I have only been at this  for just over a year I don't really have that much to go off.

Its just at the moment inflation is eating away at this profile AND its making a loss

Hopefully in 10 years time it should have recovered losses and made enough to compensate for inflation. Otherwise I guess whats the point

"Those are very small drops.    If you are already nervous with a small drop then you perhaps need to reconsider.  These are capable of much bigger losses.  15-25% would be the typical loss during a strong negative period (which will happen at some point)"

"Also, the low point was October.   Values have increased since then.  So, why are you nervous now but not back in October?"

Expotter

There's no doubt that your timing wasn't great, but what really annoys me is that these are the type of funds sold as low risk, even as 'safer' investments; under 'normal' circumstances perhaps that's the case, but the reality has been that they have returned the worst performance for the past year due mostly to their high bond allocation.
I'm not a seasoned investor, but for what it's worth, I really think that until inflation is under control and interest rates stabilise, we're not likely to see any meaningful returns, just plenty more ups and downs. So, if you're in it for the long term, I'd say hang on; otherwise you might need to reconsider.

Albermarle

Its just at the moment inflation is eating away at this profile AND its making a loss

All investors have a similar problem over the last year or so.

However you only have to look back 3 or 4 years, and investments were rising 7 or 8 times more than inflation and savings rates.

It will always be swings and roundabouts. Probably some good comments above, the balance of which are saying bump up the equity % of the portfolio, without going too far.

jimjames

Expotter said:

There's no doubt that your timing wasn't great, but what really annoys me is that these are the type of funds sold as low risk, even as 'safer' investments; under 'normal' circumstances perhaps that's the case, but the reality has been that they have returned the worst performance for the past year due mostly to their high bond allocation.

I'm not sure a 6% drop is the "worst performance". You might want to look at Scottish Mortgage trust A 6% drop is still at the low risk level.

Neversurrender

jimjames said:

Expotter said:

There's no doubt that your timing wasn't great, but what really annoys me is that these are the type of funds sold as low risk, even as 'safer' investments; under 'normal' circumstances perhaps that's the case, but the reality has been that they have returned the worst performance for the past year due mostly to their high bond allocation.

I'm not sure a 6% drop is the "worst performance". You might want to look at Scottish Mortgage trust A 6% drop is still at the low risk level.

Yes SMT really is for the long ride, if I invest in that at my age I would die rich