Aviva Share Discussion Threads

[scrwal] 17/5/2021 13:06

HL charge holding fees on funds held starting with 0.45% on the first £250,000 . Interactive don't.

[fenners66] 17/5/2021 09:04

"Devonbeachbum
15 May '21 - 21:53 - 8473 of 8483

Whatsup - Those big charges aren't there on HL. Most funds can be bought and sold without charge and have a management fee under 1%. I haven't got any exposure to FAANG stocks but will change that with L&G's US Index. The current charge is 0.06%."

Have you also checked the bid / offer spread.

It's easy to have low management charges and trumpet them , but then have a 10% spread instead of say 5%.

I looked at the spreads of one provider , as far as I could , and that was the case...

[lancasterbomber] 16/5/2021 17:44

Reference housing, I brought my first house in 1972 and if you take the price of the one I live in now, I would be being paid £300,000 a year if wages had gone up as much.

[whatsup32] 16/5/2021 16:27

Axa’s asian operations hit in ransomware attack.



Becoming the norm to get ransom attacks . Wonder what protection our brokers/Aviva have in place

[bracke] 16/5/2021 16:14

"Good luck to you, richie1218. I learned the error of holding too few stocks years ago - the hard way. Holding just one is reckless gambling."
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Some years ago I had a number of posts with another who had invested virtually all his money in BP because it paid good divis and was a 'solid' company. I pointed out to him that other 'solid' companies had come to grief and he would be better spreading his risk by investing in some other companies but he disagreed.

Approx six months later the Macondo well blew out.....no more be said.

There are situations in life where the risk is small but the consequences are big.

Each to their own.

[father jack1] 16/5/2021 15:30

House prices will keep going up until rising interest rates put the brakes on. Might take some time for that to happen as central governments and bankers will be loath to do it, even with inflation poised to take off.

[devonbeachbum] 16/5/2021 15:13

Thanks for the warning Dr B. but I've done the homework. Fully aware of ongoing charges, fund classes, differences in Funds and IT's etc. Already in travel stocks pre crash Whatsup. May be in them for a long time!

[cjac39] 16/5/2021 12:38

off topic but its the weekend. will house prices keep going up? there is quite some decent theory to suggest that house price rises are correlated to the lowering of real yields over the past decades rather than some automatic process with rising gdp or household incomes.

personally I think we are now at an interesting inflexion point whereby the disinflationary forces of Chinese cheap labour is at an end. whether africa takes up the mantle is I think questionable and therefore I think that inflation risks are more abundant now than they have been in my investing career.

ergo i think historic long term trends and relationships and the unstoppable force of house prices only going up could be a questionable assumption moving forward.

theoretically speaking house prices should really be a function of their income and the discount rate applicable to that income. therefore it should be the case that rising interest rates threatens to destablise the value of this asset given that rents are on the whole more stable.

[whatsup32] 16/5/2021 12:35

Strong finish Stateside Friday night , may continue here tomorrow.

On a sideline , take a look at travel industries. IAG , Ryan, Easy all trading at fairly high prices . I can’t make sense of this given airlines have been all but grounded for nearly year and a half. They should surely be penny shares by now.

Is it a case of there is a lot of money out there looking for a home or are they afraid of sitting on the sideline and missing out.

[dr biotech] 16/5/2021 10:55

DBB

I’d be careful of HLs fund charges. As with most other brokers you don’t pay the initial charge, but the ongoing charges are there. HL will often have a special class of funds (ie Z) that offers a discount off the ongoing charge, but then add on a platform fee which makes it somewhat more expensive overall. I had an ISA with them (about £150k) and did the maths - saved about 3-400pa moving to the Halifax.

Have to be careful not to confuse funds with trusts which are similar but different. Trusts generally perform a little better, particularly if you buy when the discount to NAV is largest.

[whatsup32] 16/5/2021 10:11

If it makes anyone feel better I bought into Aviva shortly before it started dropping like a stone at 478p.
Done some research but not much and bought into insurance sector thinking of it as defensive stock with high returns .
SP subsequently dropped to 250p? And only now back into £4 .
I have a huge chunk in Aviva and believe it or not never lost any sleep even when it dropped like a stone.
Making decision to buy into Aviva was never a mistake , mistake was having " calamity CEO'S"run Aviva .

[devonbeachbum] 15/5/2021 21:53

Whatsup - Those big charges aren't there on HL. Most funds can be bought and sold without charge and have a management fee under 1%. I haven't got any exposure to FAANG stocks but will change that with L&G's US Index. The current charge is 0.06%.

[1robbob] 15/5/2021 19:39

In the longer term the AV shsre price and dividend growth will be determined by ABs ability to generate higher sustained returns from its businesses

I am mightily relieved to read cjac's comments that AV are at last recruiting 'Best-in-class' individual managers rather than promoting internal mediocrity

[brucie5] 15/5/2021 18:34

RCTurner215 May '21 - 16:36 - 8469 of 8470

In all honesty I have done better out of ITs then with my direct picks.
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That's not stupid. ITs give you the chance to rotate into and out of sectors, leaving the managers to choose the market leaders. You can mightily outperform that way, if you get the rotation right, with protected risk to the downside.

[whatsup32] 15/5/2021 17:41

Funds tend to charge quite a chunk in management fees . I bought into a fund charging 3.75% (Technology shares in Naz).
That should be taking into consideration if you want to trade frequently .

My best one was to buy and leave it alone , MSFT some 18 years ago with div reinvested automatically. Pension sorted:)

[rcturner2] 15/5/2021 16:36

There is a guy who occasionally writes in the IC (John Barron I think) who only invests in investment trusts and does not buy direct shares.

Since reading his articles I have followed him into many of the trusts he owns and also done my own research (trustnet is a good place to start).

In all honesty I have done better out of ITs then with my direct picks.

[brucie5] 15/5/2021 14:29

I notice AV gets a mention by Algy Hall in this week's IC as one of 12 'dirt cheap shares'.



Regarding having only only one stock - even if it is AV. - I would strongly urge against it.

I recall a well known poster the Motley Fool, who did similar with LLOY, right up to 2008, on basis that since it had been in existence since time immemorial and was a UK institution, it made perfect sense to assume that there were only buying opportunities when it went down. He fell strangely silent thereafter, only to come back and assure peeps, that contrary to every thing he's been saying for years, he also a BLT investor.

Diversification of some sort is really important, and on simple basis of maths, having your pot in more than one share materially reduces the risk to your folio, even on a 50% drop - never mind a wipeout, as did effectively happen at LLOY.

So assuming 50% drop in one stock, it takes the following to get back what you lost:

1 share folio (drops by half) - 100%
2 shares folio - 33%
3 shares folio - 20%
4 shares folio - 14%

And so on, till at 12 share folio, where each share has theoretical weighting of 12%, a complete wipeout of one share would necessitate 8.6% recovery of the folio; or 4.3% on 50%.

Obviously you might want to cut losses before any such hit, but that's not how life happens.

Another reason to diversify is to give you extra confidence that a more buy and hold approach with the shares you have actually researched and invested in, will pay off. I once put (almost) all my eggs into a share called BTG; but it made me too nervous to defend good gains, when I could have held on to buy out, if I wasn't so concerned to protect capital.

And to me it's axiomatic that an investment needs to allow me to sleep at night.

So in summary, some diversification is essential, imho. But you only learn from experience in this game, I'm afraid - which generally means, the worst has to happen before you learn it.

[alphorn] 15/5/2021 13:11

I prefer to look towards the future. ;)

(Mid 90's was an excellent moment to buy after the fall as was moving into foreign currency properties in early 2000's. Holding for ever as you infer is an option).

[spud] 15/5/2021 13:04

But house prices have gone up for ever, that's the point! spud

[alphorn] 15/5/2021 12:45

"House prices won’t go up for ever for sure". Neither of course will interest rates not go up for ever.

[devonbeachbum] 15/5/2021 11:17

Thinking funds / investment trusts may be the diversification I need in future - still with a holding in Aviva. Don't think I have the skill set (or luck) to pick consistent winners on an individual stock basis. Thanks again for your comments.

[woodhawk] 15/5/2021 10:47

LOL!! Yes, not sure I'll ever top the profits I made from trading GVC (for an individual company). It more than paid for all my losers! Surprisingly, staid old LGEN and GSK have been my other biggest 'winners' to date.

[devonbeachbum] 15/5/2021 10:41

Forgot to say Woodhawk - congrats on getting great results from GVC - (now Entain, a gambling company) - But that did give me a big ironic chuckle!

[woodhawk] 15/5/2021 10:36

Devonbeachbum,

Most of us have strokes of luck from time to time - but consistency over the long term is where the the largest profits are made by reinvestment of divis and cap gains/trading profits. The compounding/snowball effect. For that you need diversification - it just gives you way more options. I tend to hold up to 15-20 stocks at any one time. Historically, I've made circa 33% of my profits from divis and 66% from cap gains/trading. My divi percentage is likely to increase and my trading/cap gains to decrease as I get older and less directly involved in trading the market on a frequent basis.