Investment Funds Help!

Hi, I have around £37k invested in Baillee Gifford American Fund (pension). The majority of this investment was made during 2021 when the stocks were high (I am not an experienced investor so this was clearly a bad move) anyways the stocks have clearly since dropped bigtime and Im not at about a 40% loss and have been over the last 2 years. My question is should I continue to contribute to this fund in the hope that I will bring the average stock cost down, although this could take years, do I wait and ride it out for a few more years or do I cash out and take the loss in the hope that a different investment will make up for the losses made?!!!!

Its really stressing me out and I am in a similar situation with other funds bought during the pandemic in my stocks and shares ISA that have now lost a lot of money too. All are mixed investment funds. 

I know no one can offer real financial advice but if anyone can offer any helpful tips that would be much appreciated. 

Many thanks
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  • Albermarle
    Albermarle Posts: 21,042
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    All are mixed investment funds. 

    This could mean anything, can you give some details of them and when you invested?

  • Is it this one-

    bailliegifford.com/en/uk/individual-investors/funds/american-fund/

    "The Fund aims to outperform (after deduction of costs) the S&P 500 Index, as stated in Sterling, by at least 1.5% per annum over rolling five-year periods. There is no guarantee that this objective will be achieved over any time period and actual investment returns may differ from this objective, particularly over shorter time periods."
  • AlanP_2
    AlanP_2 Posts: 3,244
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    What is your timeframe?

    If you are retiring next month or in 30 years time will make a lot of difference in terms of response about pension approach?

    Whatever the answer to that is - DON'T PANIC is the first suggestion. Being concerned and asking for thoughts on here is great but don't get too stressed and do anything rash.


  • Janie2008
    Janie2008 Posts: 255
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    You've been very unlucky with timing but it's a lot of money to have in just one fund. If it was me and I'm by no means an expert I would leave some invested but switch the majority to other funds. You could look at the Vanguard life strategy funds which are popular in pensions.
  • Grandst2
    Grandst2 Posts: 29
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    Give a fund manager who managed to lose 40% of your money even more of your money and you're paying high fees for the pleasure. The index has been going sideways so this is some achievement.
  • dunstonh
    dunstonh Posts: 115,627
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    edited 6 October 2023 at 1:04PM
    Hi, I have around £37k invested in Baillee Gifford American Fund (pension). The majority of this investment was made during 2021 when the stocks were high (I am not an experienced investor so this was clearly a bad move) 
    BG American was one of the highest risk N.American equity funds in its sector.  It went heavy in tech stocks and rode the wave during the tech stock boom.   Tech stocks went on to unwind late 2021/early 2022 during dot.com crash II.   However, they have done better in 2023.

    It is the type of fund that makes a good satellite fund to your US equity holdings in your portfolio.  Its not a fund you go 100% into overall or even a fund you go 100% into your US equity allocation.

    My question is should I continue to contribute to this fund in the hope that I will bring the average stock cost down, although this could take years, do I wait and ride it out for a few more years or do I cash out and take the loss in the hope that a different investment will make up for the losses made?!!!!
    How does it fit with your wider portfolio?      Are you using it as a core US holding or satellite US holding?   Or worse, is it your only holding?

    It will recover in time.  However, if you look at the performance compared to a US equity tracker, you will see it boomed and then crashed but is back in line with where the general market is (not for you as you missed the boom).    So, you will need to wait either for the general market to improve or for tech to go into a new bubble.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Eyeful
    Eyeful Posts: 334
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    You do not say how long it is before you retire or what the rest of your portfolio is.
    You state you are not an experienced investor so what guided you to choosing the funds in your portfolio?
    Investing is for the long term (10 years or more). So if you are not going to retire for 30 years, there is time for this and your other funds to recover.

    I would think that for a person with little or no investing experience, a passive multi asset fund with low charges would have been a better first step than the fund you mentioned. 

    I suggest you take a look at the following video's and look into multi asset fund such as HSBC Global Strategy (other are available). Perhaps having one of these funds set at your risk level, might reduce your stress and let you sleep at night.

    https://www.hsbc.co.uk/investments/products/hsbc-global-strategy-portfolios/#balanced

    https://www.kroijer.com/

    https://www.youtube.com/watch?v=lGQ9KyQq8Jw



  • Diaz13
    Diaz13 Posts: 29
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    Sorry I should have said this is not my only fund. I have investments in Blackrock consensus , HL Growth Fund, and Vanguard US Equity Index Fund. However my biggest investment is sat with this BG Fund. 

    Similarly I have investments in my stocks and shares ISA with BG Managed Fund and BG positive fund all again at a loss due to my investments made during the pandemic. 

    I am 41 years old so no where near retirement however I just don't know how long do you wait for the market to go through another boom or do you take the hit in the hope that you can make more money elsewhere. I know any investment should be at least 5 years. But I'm almost 3 years in and at such a loss! 
  • dunstonh
    dunstonh Posts: 115,627
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    . I have investments in Blackrock consensus , HL Growth Fund, and Vanguard US Equity Index Fund. However my biggest investment is sat with this BG Fund. 
    That is a strange mix.   What investment strategy are you following?  or is it largely random?

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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