not on facebook
ANNOUNCEMENT : ALL OF ROYAL MAIL'S EMPLOYMENT POLICIES (AGREEMENTS) AT A GLANCE (UPDATED 2017)... HERE

ANNOUNCEMENT : NEW CORONAVIRUS FORUM... HERE



Tracker Funds

18 Mar 2020, 21:49

Who, if anyone is paying into tracker funds as part of their private pension, SIPP etc? If you are, I'm just wondering how they have done the last few weeks. Genuine question, I'm not taking the piss.

Tracker Funds

19 Mar 2020, 06:39

I recently opened a SIPP with Vanguard and transferred a sizable old pension from Aviva into it. Everything in it is invested in one of their Target Retirement Funds (approx 70% equities/30% bonds and diversified across lots of other funds including trackers).

Although 'on paper' it's lost value, luckily for me, the delay in the transfer process meant my Aviva holdings were sold at a 2% loss (near the start of the panic) and by the time the purchase had gone through on Vanguard there had been a further sizable drop so I got a lot more units for the money. Mind you it's still volatile and likely to drop a bit for a while.

I have stopped looking at the prices now (same with my Scottish Widows DC RM scheme). Investing is a long game and I have 10-15 years to go (I believe history has always shown a positive return over this sort of time period covering many other world issues).

Of course, the losses are only losses if you need to sell up now. I think what it does show is that, if you rely on these sort of pensions as your primary retirement income, you should have a strategy as you approach retirement to have a % of your assets in cash or low risk funds. I plan on having 3 years worth of income in cash when I retire so that if there is a market crash like this then I can leave the investments well alone to recover as otherwise you end up ravaging your pension pot by drawing on it. Obviously that does not apply to final-salary type defined benefit schemes where you have more protection.

It's a good time to buy at the moment so am waiting for start of new tax year to put another wedge of savings in as cash savings rates will be zero or negative soon at this rate.

If the markets never recover we will probably have other things to worry about than investments (pitchforks at the ready!!)

Tracker Funds

19 Mar 2020, 07:48

I haven't got any money invested in trackers, but in theory they should buy shares in all the companies in the index they're tracking, in proportion to the size of the companies within that index. Therefore your fund should should go up and down by very similar percentages to that index.

In practice some tracker funds don't always do that and only invest in a sample of the companies available, and so don't always follow the index exactly.

At the time of writing, the FTSE100 for example, has dropped from 7,457 on 19th February to 5,080 on 18th March. A reduction of nearly 32%.

Personally I have money invested in both equities and bonds via various funds in AVC's, a personal pension and an equity ISA.
In a similar period of time, my ISA has seen highest percentage reduction at 27.50%, and the lowest fall is my personal pension at 11.20%. Although I invest in a total of around 15 different funds over the two products.

Tracker Funds

19 Mar 2020, 17:49

I've been investing since 1991 in exchange traded shares, oeics and have dabbled in trackers. I can honestly say I've had the least amount of success with trackers. Never took a hit but never broke any pots either but of course that's not their remit really.

Tracker Funds

19 Mar 2020, 17:53

I should add, that I'm absolutely not qualified to give advice but without any doubt this is one of the unfortunate "gifts" that rarely come our way. 9/11 and 2008 being the other stand out ones. Obviously I'm not advocating profit making from loss of life but there is money to made at this time if you have both the capital and the balls...

Tracker Funds

19 Mar 2020, 22:23

Some very interesting comments. Cheers. I'm tempted to drip feed into the FTSE 250 from April as it has lost more than 25% of it's value.

Tracker Funds

20 Mar 2020, 09:36

lordthornber wrote:I should add, that I'm absolutely not qualified to give advice but without any doubt this is one of the unfortunate "gifts" that rarely come our way. 9/11 and 2008 being the other stand out ones. Obviously I'm not advocating profit making from loss of life but there is money to made at this time if you have both the capital and the balls...

Although I've 'lost' money in the last few weeks, overall I'm still making decent profits from my investments over the long term, and much more than if I'd just put it in the building society!
Most of that has been since 2008, in particular.

I agree there is money to be made after a market crash, whatever the reason for it.
To some people, it may seem an odd time to start piling in the money, but it really should be seen as an opportunity.

Tracker Funds

20 Mar 2020, 09:36

heapsy wrote:Some very interesting comments. Cheers. I'm tempted to drip feed into the FTSE 250 from April as it has lost more than 25% of it's value.

Between 20th Feb and 19th March it actually went down by over 41%. The question of course is will it, and other indices, go down further before they recover and will they go back up to anywhere near their previous value?

Share investment is always a gamble to one degree or another, and I suspect many companies may be irrevocably damaged by Coronavirus. But over the longer term, equities have always turned out to be a good investment.

Tracker Funds

21 Mar 2020, 02:29

I was watching CNN earlier today and they had an expert on from Yale University. He said that pandemics are episodic in nature and that they move in waves and will wash backwards and forwards over the earth until there is a level of herd immunity. By which time it is endemic in the species and we will never be able to fully eradicate it, much like flu is endemic in the human species. The difference being that covid 19 is a least 10 more deadly than flu. If it mutates like flu does each year then the level of herd immunity will be reduced and there will be major flare ups in future.
The government looks like it is going to throw at least a trilllion £££ to try and get it under control this time.
The worrying thing is that what the bloke from Yale said was that it was inevitable that China would have another outbreak.... everywhere will. .... it comes in waves remember....... until we have built up a level of herd immunity.
How much havoc will this wreak on the world economy....... at the moment they are talking recession...... if the Yale bod is right then we are staring down the barrel of an economic depression with governments hamstrung by owing trillion upon trillion trying to fight this disease..... its a real Doomsday scenario.
Let’s hope he is wrong.
I will be sitting on my hands for the time being...... waiting for loo rolls to reappear in the shops :nana :crazy:
Anybody ever watch a series called “Doomsday preppers”?....... everybody thought they were cranks...... no ones is laughing at them now. :arrrghhh :arrrghhh

Previous page Next page


Page 1 of 1