Quilter S&S ISA - 7%

SJG1962

We have lost over 7% since opened in 2018, as well as missing out on interest we could have earned, overall a financial disaster.

Should we cash in now and open a fixed saver account instead offering 5%+, tax free status not an issue. 

eskbanker

That really isn't a 'disaster', in the context of the inherent volatility of investments, but what have you actually invested in (i.e. specific products within that wrapper) and over what timescale did you anticipate holding them (i.e. when are you likely to use the money)?

dunstonh

We have lost over 7% since opened in 2018, as well as missing out on interest we could have earned, overall a financial disaster.

A 7% loss in a negative year is very mild.  Certainly not what you would consider a disaster.

Should we cash in now and open a fixed saver account instead offering 5%+, tax free status not an issue. 

What has changed from when you invested, that makes you think you need to change the product now?

i.e. when you started investing, you know there would be negative periods as well as positive.   2018 was a negative year.  2022 was a negative year.  So, you have had a volatile period from the off but seeing as investing is long term and a cycle is around 15 years, you are not treating it as long term at the moment.

Audaxer

dunstonh said:

We have lost over 7% since opened in 2018, as well as missing out on interest we could have earned, overall a financial disaster.

A 7% loss in a negative year is very mild.  Certainly not what you would consider a disaster.

I read the post that the OP is down 7% overall on the original investment made in 2018?

Albermarle

Audaxer said:

dunstonh said:

We have lost over 7% since opened in 2018, as well as missing out on interest we could have earned, overall a financial disaster.

A 7% loss in a negative year is very mild.  Certainly not what you would consider a disaster.

I read the post that the OP is down 7% overall on the original investment made in 2018?

Yes my initial reaction was that a loss of 7% over the last 5 years is actually a pretty poor result.
Of course it depends on what the investments are, but a typical middle of the road type fund would probably be up around 15% give or take a few % as a benchmark of sorts.

EthicsGradient

It's possible that the investment(s) had a significant bond component, in which case something that may have looked "safe but unspectacular" when bought has turned out to be "poor". There may also be a significant management fee (which could account for over half the losses over 5 years). It could be something that just suffers from bad sentiment - eg
abrdn Diversified Income and Growth plc Ord 25p Fund factsheet | Trustnet
which has lost 7.6% over the last 5 years in its share price, though its NAV has gone up 19% (the discount went from more or less 0 to 26%).

boingy

I can't be the only bystander who saw the title of this thread and thought there was a new ISA offering 7% return. My mouse button has never been clicked so quickly. 

7% loss in 5 years is pretty bad. What stocks/funds does the ISA invest in? What are the management fees? Was this investment via a financial adviser?

All else being equal, I would take the loss and invest it in something else.

Albermarle

EthicsGradient said:

It's possible that the investment(s) had a significant bond component, in which case something that may have looked "safe but unspectacular" when bought has turned out to be "poor". There may also be a significant management fee (which could account for over half the losses over 5 years). It could be something that just suffers from bad sentiment - eg
abrdn Diversified Income and Growth plc Ord 25p Fund factsheet | Trustnet
which has lost 7.6% over the last 5 years in its share price, though its NAV has gone up 19% (the discount went from more or less 0 to 26%).

Even an investment like Vanguard Life strategy 20, with 80% bonds has still just about showed a positive return over 5 years.
On the other hand like you say, could be a specific fund with an issue. Like a commercial property fund badly affected by Covid.

mooneysaver

If you're worried about that kind of loss you really need to look for a lower risk investment such as a GIA or mortgage trust. The Scottish Mortgage trust seems to be a popular low risk high return option often cited on this forum though I have never used them myself.

dunstonh

mooneysaver said:

If you're worried about that kind of loss you really need to look for a lower risk investment such as a GIA or mortgage trust. The Scottish Mortgage trust seems to be a popular low risk high return option often cited on this forum though I have never used them myself.

SMT is down 42.97% over the last two years.   It is one of the highest risk mainstream ITs.

Albermarle

The Scottish Mortgage trust seems to be a popular low risk high return

If you think that is low risk , I am not sure what you would consider high risk !