Bad Pension Fund LV=

adamni2006

I have a pension with LV= and I desperately need to change my fund manager - it's losing so much money but there is no front end portal to allow me to sell and move to another fund manager

dunstonh

t's losing so much money but there is no front end portal to allow me to sell and move to another fund manager

What are you invested in as everything is up since October 2023. (after a poor Nov 2021 to Oct 2023).

adamni2006

7IM Adventurous (S2), but my other pension Abrdn investment myfolio mkt4 is doing really well as is my ISA mkt5

Linton

adamni2006 said:

I have a pension with LV= and I desperately need to change my fund manager - it's losing so much money but there is no front end portal to allow me to sell and move to another fund manager

This is a rookie error. Funds don’t behave well or badly. They perform according to what they invest in and how their sectors behave in the world markets.Sometimes they happen to be highly invested in particular industries that the markets like, sometimes not. The difficulty is that no industry can continually to be loved by the markets You know last years results, not next years.

Comparing your two funds. The 7IM fund includes a relatively high % in small companies and low % Tech. The abrdn fund holdings are more evenly balanced.  Recently large US Tech companies have performed extremely well. Hence the results you see.

But beware, 23 years ago the situation was similar.  The Tech market crashed disastrously and shares globally fell by 50%. Previously star funds dropped by much more.

If you think about it selling last years poorly performing funds and buying previously better performing ones, selling again when prices fall is an excellent way to lose money. It’s called buying high and selling low.  Best to decide on a strategy that matches your requirements and keep to it.

Keep_pedalling

You must also have been holding the funds for a very short time (less than 3 months) to actually be seeing a loss on your original investment. 

adamni2006

Been watching this fund for the past 5 years -  and it has not done well during that time - goes down when others go up and been like that for a long time - had this pension with this fund since 2010 - did well in the first 5 years

Marcon

adamni2006 said:

I have a pension with LV= and I desperately need to change my fund manager - it's losing so much money but there is no front end portal to allow me to sell and move to another fund manager

That's not how I read the graph....

adamni2006 said:

Been watching this fund for the past 5 years -  and it has not done well during that time - goes down when others go up and been like that for a long time 

adamni2006

Big thank you to Marcon - you've put my mind at ease - I'll probably move to HL when that £1k cash back is back on - but for now I'll leave it where it is

Linton

Replacing investments that have performed badly in the past by ones that have permed better is a classic rookie error. What happens is that a few years later the old investment performs better than the new one so you swap back but you end up with fewer units than when you started.  Selling low and buying high is  a very good way to lose money.

Marcon

adamni2006 said:

Big thank you to Marcon - you've put my mind at ease - I'll probably move to HL when that £1k cash back is back on - but for now I'll leave it where it is

I'm glad to have helped, but I wonder why you were so convinced your funds were 'losing so much money'? What made you so convinced that disaster - and long term at that! - had struck? I'm only asking because it might help to ensure you don't endure sleepless nights at some future point, with your anxiety based on nothing worse than a simple misunderstanding.

adamni2006

One of my mates is also an IFA - he set up the pension fund and I had a little winge about it not doing as well as my other fund - and he just said "Oh! it seems to be under performing"