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Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

What should you do when a fund is removed from the Wealth 50 list?

The TM Sanditon European Fund, which was recently removed from the Wealth 50 list, was in my ISA account and held by a handful of clients, all of whom I have already contacted. However, I thought this would be a good opportunity to run through the support I can provide and the actions clients have been taking as the result of this Wealth 50 deletion.

Firstly, to set the scene, most clients have it as their core investment strategy to only hold funds in the Wealth 50 list, unless they can be very clear why there is an exception and they know how that fund will be monitored in future.

Hargreaves Lansdown will tell you when a fund has been removed from the Wealth 50 list but they will never tell you what to do next. My experience is that less than 25% of my clients wlll either act independently or ask me for guidance when they hear from HL, which is why my pro-active guidance service is so important.

I am not a regulated financial adviser and I cannot give personal buy/sell advice but I can put you in the position where you can make sound decisions for yourself.

In this case there are four other European Funds in the Wealth 50 list any one of which would be a sound alternative to the removed Sanditon Fund. However, if I am going to make a switch I want to get into the fund with the greatest possibility of out-performance (not guaranteed).

Past performance is no guarantee of future performance but, I have not been able to find a better predictor particularly when there is a sound monitoring process in place.

  • The next stage in the process is therefore to go into the Wealth 50 list – European Funds – and make a list of the four funds. If you click on any of them you will get some basic information. You should then click on “fund fact sheet” to get more detailed information.
  • From there you can go to “charts and performance” and get a performance chart for the fund you are looking at over 1, 3 or 5 year periods.
  • You can then add the other three funds to the chart and you will have a clear picture of how they are all doing.

That may be sufficient for you to make your own fund choice and make the required on-line switch.

If you would like more guidance there are normally a couple of other issues I can ask you to think about based on my knowledge/experience. For example, the Baring European Select Fund is a smaller companies fund. Some clients may decide to add a bit of diversification by holding two European Funds which sit in different stock-market sectors.

There is a great deal of press comment these days about the benefits of using low cost index tracker funds. In this case you will see that the actively managed funds have comfortably out performed the tracker even after higher fees.


I hope this has given you a better feel of how all this works. If you really don’t want to get too involved remember to get in touch immediately you are told that one of your funds has been removed from the Wealth 50 list. If you like to understand what is going on just work through the above exercise. I would love to know how you get on.

Finally, just to say that I am well aware of all the adverse publicity HL have received as a result of their support of Ian Woodford. That criticism is well deserved but I believe they have learnt their lesson and improved many of their processes. They continue to be the market leader in their sector and whilst I am always looking at alternatives I believe that, for now, they remain a good choice if you are looking for an online platform.

Nearly all my clients come to me by personal recommendation. I probably do my best work with clients in what I call  “The Retirement Risk Zone”. That period three years before and after retirement. That is the time when, if people are to have a comfortable retirement, they need maximum help and support without getting involved in high fees.

If you have friends or family in “The Retirement Risk Zone” please ask them to get in touch. A quick text or phone call to me, Richard, on 07770 575122 is all that is needed.

 

IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

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