Replace St James' Place

CheekyMikey · 20 November 2023 at 9:21AM

Brilley said:

..I can't repeat what I have already stated enough. We have been with TP for 7 years, and every month I update a spreadsheet using actual values. (No money has been added or taken out). The only thing I am interested in is what amount we started with, and what is its current value "now". This is plotted on a chart alongside a graph that allows me to put in a "linear" line corresponding to any interest rate I choose. I can confirm that the best we have ever achieved was equivalent of a 4% per annum return, and as of the end of last month this was showing a current overall annualised return equivalent to 0.7%. We have never EVER got anywhere near 17%...(I wish)...

Well, only you know what portfolio you have and how you are calculating your returns, so I can’t comment on that. All I can see on their published performance data is that for the year to Oct21 their balanced portfolio (which I have equated to medium risk as it is approximately a 50/50 fund) grew by 17.5%. Only their defensive portfolio which is 25/75 had less than double figure growth. Perhaps your portfolio is more defensive than medium risk? If not, then clearly you think TP’s stated performance data is wrong so maybe ask them why your own portfolio performance is so different?

Albermarle · 20 November 2023 at 12:31PM

Or DIY are too risk happy? Are DIY not properly assessing their risk as they should?

I did not mean that all DIY investors are invested in 100% equity funds, I assume most are not.
Probably in fact most investors are a bit too cautious for their own good, holding too much cash etc
It is just AFAIK it is unusual for an advisor to recommend 100% equity to a client.

It is a bit of a tricky one as investing in global trackers for the long term is not really risky at all ( based on past performance anyway), but it can be very volatile and this is what scares people. Apart from you seeing a third of your money disappearing in a couple of weeks, at the same time the media will be hyping it up even more, so could be quite a stressful time unless you have good nerves.

GeoffTF · 20 November 2023 at 12:35PM

Albermarle said:

It is a bit of a tricky one as investing in global trackers for the long term is not really risky at all ( based on past performance anyway), but it can be very volatile and this is what scares people.

That was true only in the markets where it was true.

wiltshiregirl69 · 20 November 2023 at 3:45PM

Albermarle said:

Or DIY are too risk happy? Are DIY not properly assessing their risk as they should?

I did not mean that all DIY investors are invested in 100% equity funds, I assume most are not.
Probably in fact most investors are a bit too cautious for their own good, holding too much cash etc
It is just AFAIK it is unusual for an advisor to recommend 100% equity to a client.

It is a bit of a tricky one as investing in global trackers for the long term is not really risky at all ( based on past performance anyway), but it can be very volatile and this is what scares people. Apart from you seeing a third of your money disappearing in a couple of weeks, at the same time the media will be hyping it up even more, so could be quite a stressful time unless you have good nerves.

A lot of advisors stuck to the historical models of moving to a greater bond/equity split as their investors were moving towards retirement. The bond market wasn't a safe haven either though and didn't help the growth of their pension funds.

dunstonh · 20 November 2023 at 4:12PM

A lot of advisors stuck to the historical models of moving to a greater bond/equity split as their investors were moving towards retirement.

I would disagree. Advisers did more drawdown than DIY investors and that doesn't usually result in derisking as much. Often it may just see someone move from 80% equity to 60%, which in the scheme of things is not very much.

The movements in fixed interest/equity ratios was mostly in funds that had built in automatic risk reduction (lifestyling) where no DIY or adviser decisions were involved.

Brilley · 20 November 2023 at 5:28PM

CheekyMikey said:

Well, only you know what portfolio you have and how you are calculating your returns, so I can’t comment on that. All I can see on their published performance data is that for the year to Oct21 their balanced portfolio (which I have equated to medium risk as it is approximately a 50/50 fund) grew by 17.5%. Only their defensive portfolio which is 25/75 had less than double figure growth. Perhaps your portfolio is more defensive than medium risk? If not, then clearly you think TP’s stated performance data is wrong so maybe ask them why your own portfolio performance is so different?

Well, to make it as simple as I can, we had 85k invested at the start of 2017.

4 years later, at the end of 2021 it had gained £13.5K giving a total of 98.5k, or the equivalent of 4% per annum. (This has been our max overall / best return to date).

As of the end of last month (7 years), the total value is now a little over 89k, ie an overall total return of just over 4k or the equivalent of 0.7% annual growth since we started.....

kittycatface · 29 June 2024 at 6:48PM

Hi my family put funds into SJP when a relative died and all immediate relatives use them. However I have a personal concern which I do not want to go into on a forum as was previously unaware of which family set up the fund until recently and am trying to research more ethical (ie my ethics not anyone else's thanks

) banking choices. I don't want a risky investment but also like others on here have been a bit flummoxed by poor returns which have grown by 10,000 in over a decade - ISA would have given me roughly the same give or take a few Liz Truss moments. It's really hard to find info if like me you have an arts degree, you feel a bit weird paying an IFA (I work in the NHS and social care and am paid half what they are to give detailed info on people's rights and solve complex probs). the only person I know who works in finance deals with million pound investments plus, and other friends its not the done thing to say you have a bit of inheritance money. So I just end up with the money languishing away. I have had advice to put some into gold (which I am happy with but believe there are storage costs as where I live wouldn't be safe - plus where do you go except Hatton Garden?) and saw a ridiculous ad on TV for Vanguard which focused on old couples, played a couple of diversity elements, and people with families like all financial products which turned me right off as it seems I am always excluded from the marketing party on security and safety - strange as unlike parents grandparents I actually manage to save more and only have myself and my savings to rely on in an emergency!!
Any ideas really welcome as have discovered over the years that forumites are well informed and helpful compared to anyone you might pay to do something. Thanks in advance

gravel_2 · 29 June 2024 at 6:56PM

kittycatface said:

Hi my family put funds into SJP when a relative died and all immediate relatives use them. However I have a personal concern which I do not want to go into on a forum as was previously unaware of which family set up the fund until recently and am trying to research more ethical (ie my ethics not anyone else's thanks ) banking choices. I don't want a risky investment but also like others on here have been a bit flummoxed by poor returns which have grown by 10,000 in over a decade - ISA would have given me roughly the same give or take a few Liz Truss moments. It's really hard to find info if like me you have an arts degree, you resent paying an IFA, the only person you know who works in finance deals with million pound investments plus, and other friends its not the done thing to say you have a bit of inheritance money. So I just end up with the money languishing away. I have had advice to put some into gold (which I am happy with but believe there are storage costs as where I live wouldn't be safe) and saw a ridiculous ad on TV for Vanguard which focused on old couples, played a couple of diversity elements, and people with families like all financial products which turned me right off. Any ideas really welcome as have discovered over the years that forumites are well informed and helpful compared to anyone you might pay to do something. Thanks in advance

Really not really clear what you are looking for. You don't want risk but you want return - generally return potential increases as risk increases.

You should look to understand where your current investments sit - which products are you invested in? Which assets? Which markets and in what proportion? Think about what your risk profile really is and therefore what investment product might suit you.

Vanguard LifeStrategy funds could potentially suit you quite well...

Eyeful · 29 June 2024 at 8:23PM

kittycatface:
I do not understand what you are asking information about. So I will make a few points which you may or may not know & be of help.

1. With money there is always some form of risk. Its just the size & type of risk that changes.
2. If you need the money within the next 5 years, it should be in a savings account covered by the FSCS (upto £85k).
3. Hopefully you are in some form of pension scheme, you get "free money" from the government.
4. You should have emergency fund to draw on if the boiler brakes down etc.
5 Pay off expensive debt before you think of investing.
6. if you do invest it should be for a minimum of 10 years.
7.If you do invest, use a socks & share ISA because they are a tax shelter.
8. Fees and Charges are important. They come out of your pocket.
9. Watch the following two videos that will help understand investing.
https://www.kroijer.com/