A bumpy three years or not - is any positive return a bonus ?

segovia

In late 2019 I dipped my toe into the water and opened a SIPP with AJ Bell with a £30,000.00 investment and made some regular contributions along the way. 

That £30,000.00 is now worth £38,438.00 a return of 28%, overall my SIPP portfolio has a % return of 13%.

Considering, we have had COVID, the invasion of Ukraine, Inflation and global economic uncertainty, should I be disappointed or pleased with an overall 13% return?

J

  

jimjames

Depends what you invested in. A SIPP is a wrapper not an investment so it's what you bought with your £30k that determines good or bad

segovia

jimjames said:

Depends what you invested in. A SIPP is a wrapper not an investment so it's what you bought with your £30k that determines good or bad

A low cost Global ETF

eskbanker

28% since late 2019 works out at about 7% annual growth, pretty much all of which will have been achieved in the first two years, so a reasonable return rather than spectacular, but outperforming inflation averaging about 4.5% over that timeframe....

What are/were your objectives when choosing what to invest in, and over what sort of timescale?

Edit: conversion to annualised returns will generally be more meaningful - if your 13% figure comes simply from comparing current balance with total paid in then that's not a particularly useful figure if some of that money has only been invested for days or weeks, with other contributions dating back multiple years, so weighting the return will typically give a more realistic picture.

Frequentlyhere

segovia said:

should I be disappointed or pleased with an overall 13% return?

  

Take your pick.

On the plus side you have a positive return.
On the downside that's still under inflation over the last 2.5 years. 
On the plus side, that's still above what you could get in cash, or in a hedged tracker or poorly performing active funds.
On the downside, it's not as good as if you had the same funds accumulating pretty much anywhere between 2010-2020 or in some wildly successful stock pick or active fund.

InvesterJones

Global trackers are up about 55% total return since late 2019, or around 43% by price alone.

Is the 13% an annualised figure?

Millyonare

The S&P500 (hedged) has returned roughly +30% since Q4 2019.

Ergo, +13% is a below-average return, somewhat disappointing.

Prism

InvesterJones said:

Global trackers are up about 55% total return since late 2019, or around 43% by price alone.

Is the 13% an annualised figure?

The Vanguard FTSE all world ETF is up by around 30%. Better than 13% but not 55%

Prism

That 28% is just about right for a global ETF since 2019. Unsure what is in the rest of the SIPP but if there are any bonds then that might explain the 13%. Still, a decent return considering.

segovia

No bonds, I think it's timing of my deposits. For example, if I paid in 30K last week and I had and, 8000 return on my total investment of 60K my return would be 13%. That's not what I did, just an example. Recent investments/purchases will have made nothing and have the effect of reducing the overall % profit 

segovia

Prism said:

InvesterJones said:

Global trackers are up about 55% total return since late 2019, or around 43% by price alone.

Is the 13% an annualised figure?

The Vanguard FTSE all world ETF is up by around 30%. Better than 13% but not 55%

The Vanguard FTSE all world ETF on 31 Dec 2019 was 70.56, today it's 85.69, 30K invested in Dec 2019 would be worth £36,432.00 today which is 21% and the charges are more that the 0.15 I am paying at the moment.