Being that time of year I sat down and went through my funds holdings, as one should do. Well anyone with funds will have had a good 2019, the indices tell us that. It's important though to check whether active funds are outperforming their relative indices. I was happy to find that most of them are. But I was really surprised to find I have two turkeys, (based on 2019, at least), and both are Stewart Investors funds, Asia Pacific Leaders up only 3.8% against an index of +21%, and Worldwide Select (8.1 vs 22.1). Since both are in my SIPP I think I will ditch them both and put the money in my Vanguard funds - any comments, though, from those in the know?
One thing I was really pleased about is that among my best performers were funds in the "sustainable" niche. Janus Henderson Global Sustainable Equity, up 32.6%. ASI UK Ethical Equity, up 33.0%. Another reason to be a Greta Thunberg fan :-)
But the best one was Polar Capital Tech Trust, up 43.7%.
I haven't deep dived on the individual funds and I have chopped and changed through the year and also bought and sold individual shares, but my SIPP is up 21.7% on the year so more than happy with that overall. ISA up 16.2%.
It'll all be immaterial tomorrow anyway when the premium bond winners are announced
BNY Mellon Long-Term Global Equity Fund has always served me well, up about 24% the last 12 months. But 2020 could be an up and down road for shares I think, especially any held internationally.
Tricky year ahead. USA election in November & although Trump will want a buoyant economy pointers suggest a real.slowing down worldwide & maybe the US tipping into recession. I've got 3 investment seminars coming up in January & February, hosted by Invesco, JPMorgan & Jupiter. Will give you all updates on what they think the road ahead looks like after my attendances.
Fund tips.
Allianz Strategic Bond JPM Asia Growth Royal London Sustainable Leaders (Uk Equity) UBS US Growth
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
To be fair the UK stockmarket (FTSE100 & 250) is up by around 3% since the General Election alone.....with many European exchanges up by almost the same.
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
To be fair the UK stockmarket (FTSE100 & 250) is up by around 3% since the General Election alone.....with many European exchanges up by almost the same.
Yup!
Like I said, very happy with how it (being the market as a whole) is doing.
Always passive investment for me. Never been sold on the benefits of active.
@Huskaris I tried some of those (Wealthify, Nutmeg etc) and although they are slick apps, I wasn't overly impressed if i'm honest, but I like to be hands on. My Daughter for her LISA uses Nutmeg and has set to be adventurous and is up 16.18% since opening on Jan 8th 2019, so not too shabby but obviously slightly misleading figure as although doesn't include the government bonus, does include growth on the bonus.
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
That “annualisation” you’ve done there, is meaningless. That isn’t how you can evaluate markets. In fact what I did, looking at calendar year, is also a bit dodgy, since the previous Christmas markets collapsed a bit, whereas this year they had a Santa rally. As @Rob7Lee says, better to compare your Investments to market indices. In the case of your stuff, they should be tracking them, no more, no less.
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
That “annualisation” you’ve done there, is meaningless. That isn’t how you can evaluate markets. In fact what I did, looking at calendar year, is also a bit dodgy, since the previous Christmas markets collapsed a bit, whereas this year they had a Santa rally. As @Rob7Lee says, better to compare your Investments to market indices. In the case of your stuff, they should be tracking them, no more, no less.
Yes, I know, they track markets, no more, no less, but they will be a combo of various indices, it's not like it is solely tracking the FTSE 100, or S&P 500.
I apologise if my post was overly simplistic, I certainly could write a much longer thing on it if I knew it would be criticised! For the record, the reason I am so happy with the return is because previously all of it was in a savings account...
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
To be fair the UK stockmarket (FTSE100 & 250) is up by around 3% since the General Election alone.....with many European exchanges up by almost the same.
Yup!
Like I said, very happy with how it (being the market as a whole) is doing.
Always passive investment for me. Never been sold on the benefits of active.
Active's all the way with me. May use a passive fund as a core holding & build a number of "satellite" active funds around it, but 99% of the time my clients are in active funds only.
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
To be fair the UK stockmarket (FTSE100 & 250) is up by around 3% since the General Election alone.....with many European exchanges up by almost the same.
Yup!
Like I said, very happy with how it (being the market as a whole) is doing.
Always passive investment for me. Never been sold on the benefits of active.
Active's all the way with me. May use a passive fund as a core holding & build a number of "satellite" active funds around it, but 99% of the time my clients are in active funds only.
That's fine. but in the long term, very few managers actually have a positive alpha:
Have put my SIPP in Wealthsimples growth plan, and its up 10.4% this year, Stocks and Shares ISA there as well, which is more somewhere for spare cash to go
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
That “annualisation” you’ve done there, is meaningless. That isn’t how you can evaluate markets. In fact what I did, looking at calendar year, is also a bit dodgy, since the previous Christmas markets collapsed a bit, whereas this year they had a Santa rally. As @Rob7Lee says, better to compare your Investments to market indices. In the case of your stuff, they should be tracking them, no more, no less.
Yes, I know, they track markets, no more, no less, but they will be a combo of various indices, it's not like it is solely tracking the FTSE 100, or S&P 500.
I apologise if my post was overly simplistic, I certainly could write a much longer thing on it if I knew it would be criticised!
I didn't mean it personally. I rather meant that most of us amateurs fall into such traps, I was kind of making the same mistake by looking over a calendar year. But at least in my case the exercise uncovered a couple of turkeys with a performance that doesn't seem excusable - and I will exchange them for Vanguard passive stuff (as I'm looking to reduce volatility in my SIPP, due to my age.
I use roboinvesting, so a variety of indices, bonds etc, with exceptionally low fees. I started in October and I am currently up 4.31%, which annualised would be 17.24%, so I am quite happy with that.
That “annualisation” you’ve done there, is meaningless. That isn’t how you can evaluate markets. In fact what I did, looking at calendar year, is also a bit dodgy, since the previous Christmas markets collapsed a bit, whereas this year they had a Santa rally. As @Rob7Lee says, better to compare your Investments to market indices. In the case of your stuff, they should be tracking them, no more, no less.
Yes, I know, they track markets, no more, no less, but they will be a combo of various indices, it's not like it is solely tracking the FTSE 100, or S&P 500.
I apologise if my post was overly simplistic, I certainly could write a much longer thing on it if I knew it would be criticised!
I didn't mean it personally. I rather meant that most of us amateurs fall into such traps, I was kind of making the same mistake by looking over a calendar year. But at least in my case the exercise uncovered a couple of turkeys with a performance that doesn't seem excusable - and I will exchange them for Vanguard passive stuff (as I'm looking to reduce volatility in my SIPP, due to my age.
Ah that's ok! That's kind of my point, for every turkey, there might be a great performer, but that's how it goes when you trade stability for risk.
The reason it got me, is I don't consider myself a huge amount of an amateur...
My degree is an investment financial risk management degree, including financial econometrics and quantitative mathematics. My dissertation was on fund management!
But for the record, all of our lecturers, and all of our research, which included some very, very weighty formulas and analysis, concluded that there was no benefit in the long term to actively managed funds (only once fees are taken into account to be fair).
It actually put me off going into anything related to the trading side of finance, as I realised it is all a bit of a racket to be honest. I did a bit of it at uni with commodities trading and earnt a very nice amount of money from it for a student (trading on leverage). But to be 100% clear, I do not believe that this was because I was particularly astute (I'm sure many here would agree with that!), but instead was because I was glued to watching every little bit of news that came out of the Middle East, and guessing what way it would go in the future in relation to the price of Brent Crude. Even then, I would portion it more down to luck than anything, I really would.
The news today would have me putting everything on hold, for days. It wasn't much of a life!
That's very interesting that you have that background. Respect.
I've seen a number of articles highlighting research which questions the effectiveness and VFM of active funds, I know it's an active debate. I'm tending towards your view, because of what I've seen of the industry in action, most recently Woodford and Hargreaves Lansdowne. But that said, it seems that in the last few years I picked some active funds for solid reasons, and they seem to have paid back. I went into the two tech funds (Polar and Allianz) as a way of tapping into blockchain without getting involved in all the crypto hype; and into "sustainable" funds, well, because of all the hype, if you like. But that is hype that I expect to last, in business terms. It has to. Anyway those funds delivered 30-40% this year. But then again, I am one of the Woodford mugs, waiting to see how little I get back...
Comments
If it's the biggie then all round to Large's for a party....!!
but a lad who works for me who lost his wife, I persuaded to tuck a little away in bonds (about £18k) won £200, he’s returning about 6% so far!
One thing I was really pleased about is that among my best performers were funds in the "sustainable" niche. Janus Henderson Global Sustainable Equity, up 32.6%. ASI UK Ethical Equity, up 33.0%. Another reason to be a Greta Thunberg fan :-)
But the best one was Polar Capital Tech Trust, up 43.7%.
Anyone got any fund tips for 2020 to share?
I haven't deep dived on the individual funds and I have chopped and changed through the year and also bought and sold individual shares, but my SIPP is up 21.7% on the year so more than happy with that overall. ISA up 16.2%.
It'll all be immaterial tomorrow anyway when the premium bond winners are announced
BNY Mellon Long-Term Global Equity Fund has always served me well, up about 24% the last 12 months. But 2020 could be an up and down road for shares I think, especially any held internationally.
Fund tips.
Allianz Strategic Bond
JPM Asia Growth
Royal London Sustainable Leaders (Uk Equity)
UBS US Growth
Hope this helps.
Just checked, my best performing was a surprise actually, Investec Global Gold, 37%.
Special mention on the shares to;
Go Ahead Group (I think I could pack up work and just make a living from buying them at about £20 or less and selling at £22+),
Greggs,
BAT,
Metro Bank,
L&G,
Premier Oil,
Just Eat,
Capita,
BOKU,
Apple.
Like I said, very happy with how it (being the market as a whole) is doing.
Always passive investment for me. Never been sold on the benefits of active.
I apologise if my post was overly simplistic, I certainly could write a much longer thing on it if I knew it would be criticised! For the record, the reason I am so happy with the return is because previously all of it was in a savings account...
https://us.spindices.com/documents/research/research-spiva-institutional-scorecard-how-much-do-fees-affect-the-active-versus-passive-debate-year-end-2018.pdf
The reason it got me, is I don't consider myself a huge amount of an amateur...
My degree is an investment financial risk management degree, including financial econometrics and quantitative mathematics. My dissertation was on fund management!
But for the record, all of our lecturers, and all of our research, which included some very, very weighty formulas and analysis, concluded that there was no benefit in the long term to actively managed funds (only once fees are taken into account to be fair).
It actually put me off going into anything related to the trading side of finance, as I realised it is all a bit of a racket to be honest. I did a bit of it at uni with commodities trading and earnt a very nice amount of money from it for a student (trading on leverage). But to be 100% clear, I do not believe that this was because I was particularly astute (I'm sure many here would agree with that!), but instead was because I was glued to watching every little bit of news that came out of the Middle East, and guessing what way it would go in the future in relation to the price of Brent Crude. Even then, I would portion it more down to luck than anything, I really would.
The news today would have me putting everything on hold, for days. It wasn't much of a life!
That's very interesting that you have that background. Respect.
I've seen a number of articles highlighting research which questions the effectiveness and VFM of active funds, I know it's an active debate. I'm tending towards your view, because of what I've seen of the industry in action, most recently Woodford and Hargreaves Lansdowne. But that said, it seems that in the last few years I picked some active funds for solid reasons, and they seem to have paid back. I went into the two tech funds (Polar and Allianz) as a way of tapping into blockchain without getting involved in all the crypto hype; and into "sustainable" funds, well, because of all the hype, if you like. But that is hype that I expect to last, in business terms. It has to. Anyway those funds delivered 30-40% this year. But then again, I am one of the Woodford mugs, waiting to see how little I get back...