Invesco Isa

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
5 replies 3.2K views
steve55steve55 Forumite
5 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
I have £1800 in an Invesco ISA (invested 2000). Typically shortly afterwards the stock market started to lose value and the value of my investment fell. It has improved a bit, but is only worth about 50% of what I invested. (It is invested in a European Growth Fund).

Obviously this isn't very good and I was wondering if rather than leave it in the fund for another x number of years if there are any other options open to me to increase it's value or to cash it in.

By this I mean, should I switch it to another Invesco fund that is performing well, or likely to in your opinions or are there any companies out that that buy ISA's from you (similar to the Endowment policies that people had - rather than surrendering them if I remember rightly there were companies that purchased them from individuals with a view to keeping them going and realising the policy value?)

All advice/information is welcome.
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Replies

  • dunstonhdunstonh Forumite
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    This fund has been performing significantly below sector average over the last 5 years. Probably due to an well above average (almost amazing) performance starting late 1999 until end 2000. Then it promptly fell back in line with the sector average.

    Your problem was that you put your money in one fund and one provider and chose a fund that had grown out of proportion significantly to the sector average in a very short period but had a history of performing only just above it. Looking at 20 years, it has virtually always been below sector average except for that small spike. The warning signs were there if you knew where to look.

    It has grown by 28.37% in the last 12 months. The top half funds have grown between 29.4% and 54.68 with the bottom half 20.99% & 29.34%.

    As for future, get your crystal ball out.

    Jeffrey Taylor took over the management in July 03 and his last fund report (may 05) was "Europe remains more attractively valued than other major markets, and less vulnerable than the US and UK, where household debt has reached record levels. However, we don’t expect Europe to be immune from any further correction in global stock markets and remain concerned about possible overheating within smaller-caps, resource stocks and Eastern European exposure. We are currently finding interesting opportunities among large-cap, high quality and stable growth companies and in sectors benefiting from low or negative interest rates (construction, consumer). In May we added retailers Pinault Printemps-Redoute and Metro, utilities Endesa and Public Power and pharmaceutical company Novo-Nordisk. Hennes & Mauritz, DnB and Linde were all sold after strong runs, and Galeries Lafayette was acquired at a substantial premium to the price prevailing at the beginning of the year."

    When a fund manager takes over, past performance should be totally ignored. So looking at 2003 onwards, the fund has been consistently below sector average.
    By this I mean, should I switch it to another Invesco fund that is performing well

    We cannot give advice here but there is probably enough above to help you decide. A bit more diversification would have helped you.
    or are there any companies out that that buy ISA's from you (similar to the Endowment policies that people had - rather than surrendering them if I remember rightly there were companies that purchased them from individuals with a view to keeping them going and realising the policy value?)

    No. ISAs/Unit Trusts/OEICs have a daily value with no penalty on encashment so there is no reason to buy them third party. No tax advantages for them either.

    Transferring to a fund supermarket and picking some alternative funds may be appropriate action for you to investigate though.
    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.
  • elonaelona Forumite
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    Just realised that I have the same fund!!!!! :eek:
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  • Thanks for the reply - Although you cannot give advice on this site, are you able to point me in the direction of a fund(s) that I should perhaps consider switching to..?
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  • dunstonhdunstonh Forumite
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    steve55 wrote:
    Thanks for the reply - Although you cannot give advice on this site, are you able to point me in the direction of a fund(s) that I should perhaps consider switching to..?

    I am financially and legally responsible for any advice given, regardless of how it is given. Some responsibility would potentially fall on the site as well, for allowing it. So, although I could professionally, i cannot do it here.

    Also, i do not know anything about your risk profile, timescale and amounts involved. All of which would impact on where i would recommend (or point you in the direction of).
    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.
  • ok no problem, thank you.
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