Property Funds & Investments

jamesd

The investments do not meet your specified risk criterion of "investments to be in cash or guaranteed investments" so you should be doing as dunstonh suggested and asking for your money back with interest.

audrey07

dunstonh wrote: »

Commercial property funds are often referred to as bricks and mortar funds. The money that is invested actually buys property and the rental income is the return and perhaps any growth in value on the property. These are cautious as they dont fluctuate much historically. The drops in 2007 were the first since the early 90s. Even in the 90s, they only had a year and a bit of drop back then as well.

Property shares are companies listed on the stockmarket who invest into property. You can get greater growth over the long term with these but greater losses as well in the short term as these are stockmarket based and are niche area. Worth having in a diverse portfolio but not to a large amount.



Personal Touch is a network (support company for IFAs). I dont hold them in high regard and the wording you used for the typed risk profile is almost exactly the same as the one Personal Touch insist their IFAs use. In my opinion their risk profiles are out of sync with the investments they use. For example, your risk profile is cautious and the text says "investments to be in cash or guaranteed investments". Well, that is not cautious but almost no risk (and that ignores the fact that you have been recommended more medium to medium/high!).

I think you have very good grounds for complaint and pointing out that you were cautious. You can use their own suitability report against them. It said that you were cautious and wanted "investments to be in cash or guaranteed investments". So having identified your need and documented that why have they recommended medium to high risk investments?

I would push for the investments to be voided and your money returned with interest.

I have told him I don't think the investments meet my risk profile, he said there was enough diversity in the portfolio therefore it met my risk profile! I think I need to get on the internet and pull of the risk profile for each investment before I see him again.

dunstonh

Diversity can reduce risk but not if you keep picking higher risk sectors.

You can invest in funds above and below the risk profile providing the overall spread averages out to match your risk profile.

Retired_I.F.A.

I would not waste my time ever speaking to him again. Clearly he's a cowboy just complain and push for full refund plus interest.

[Deleted User]

I agree sack him hes picked you a bit of a dog portfolio, probably max commision for him.

https://www.h-l.co.uk are the cheapest and best fund broker. Not sure how good they are at picking funds for you but I pick my own.

Too much property especially being at the wrong end of the property market cycle. Maybe in 4 years itll be good again.

dunstonh

www.h-l.co.uk are the cheapest and best fund broker. Not sure how good they are at picking funds for you but I pick my own.

They dont pick funds for you. Thats why its cheaper.

audrey07

dunstonh wrote: »

They dont pick funds for you. Thats why its cheaper.

Do you think if I spoke to Scottish Widows for example they could tell me how risky their property fund is and how it is invested ie commerical property or property shares etc and then do the same with the other companys.

shokadelika

dunstonh wrote: »

They dont pick funds for you. Thats why its cheaper.

Yes they do they offer a managed service.

Aegis

shokadelika wrote: »

Yes they do they offer a managed service.

There's no point in going to Hargreaves Lansdown if you want a managed service. You'll almost certainly be able to find cheaper IFAs near to where you live that you can easily speak to face to face when you set up or change the portfolio.

HL are excellent when it comes to execution-only services, but they don't seem quite as competitive on their advice side.

dunstonh

In this thread, references to HL are to their execution only service which is good value for the DIY investor. However, their advice service is expensive.