Legal & General Share Discussion Threads

[zac0_4] 28/6/2020 21:43

GrowthPotential - their active portfolio performance may disappoint but I've no real complaints with regards to their passive, index type funds. I hold 3 as listed with the associated 5 year performance attached. L&G Global Technology +210%, L&G International Index +75% and L&G Global Health and Pharma +73%. I'm more than happy with that performance when I compare it to my underperforming UK based dividend paying shares. Good luck in your investing.

[pierre oreilly] 28/6/2020 21:19

Fg, please provide some evidence that my views on pension charges are incorrect, instead of simply stating they are. What lifetime charges do you think pensions take out of a typical pension? (And please not 'the charges are clearly stated as 0.75%pa'- I'm asking about the total charges including the hidden and obscure ones). Tia.

[growthpotential] 28/6/2020 20:37

I must admit, LGIM active portfolio performance is awful. Among their funds to disappoint was their UK Alpha Trust fund. This fund manages £117.9 million of client assets and sits within the competitive IA UK All Companies sector. Over the past 5-years, this fund returned negative growth of -3.39%, which not only fell well short of the 26.09% sector average, but it was the worst performing fund in its sector ranking 232nd out of 232 funds.

[financeguru] 28/6/2020 17:15

qvg ..... "you are going to make mistakes and sometimes pay dearly for it." this was said in response to PO's rant against pensions which was completely and utterly wrong and clearly spoken without knowledge and therefore cause for expensive mistakes. It was misleading and without fact!

For what its worth the names you quote are Fund Managers not Financial Advisors.

[qvg] 27/6/2020 08:09

finance guru
"you are going to make mistakes and sometimes pay dearly for it." yes, of course us individual investors do make mistakes, and we pay for them. But by making a statement like that you somehow seem to be trying to insinuate that your industry (in the broadest sense) does not make mistakes, and investors never "pay for them". Darwall? Woodford? Get real!

[pierre oreilly] 26/6/2020 14:28

zac, yes, no probs disagreeing, everyone's different, would be boring if everyone agreed.

I deal in averages, not specific examples, which partly explains why we think differently.

[zac0_4] 26/6/2020 14:21

Hi PO - I think we're going to have to agree to disagree. Nothing wrong in that. I'm happy to pay the 0.36% annual charge to Legal and General for the 204% return they've given me over 5 years with their Global Tech fund rather than pay nothing directly to them to invest in their company via this share for a 15% total return over the same 5 year period. Good luck in your investing.

[pierre oreilly] 26/6/2020 14:17

Wood, yes, they are a gift from god, or at least the taxman. Again, the benefits build up exponentially over the years.

I've put the max in every year from year 1 and still do. Probably 30 years at a guess. I keep dreading one day they'll get the chop, that'll suddenly be a lot more to pay in tax each year.

[pierre oreilly] 26/6/2020 14:11

Zac, the charges on funds are not what I think in my bones, my view comes from academic research by uni researchers who look into these things, and is the nearest we can get to the truth of the situation. The charges aren't simply the 1% they tell you about. Churn is another good money earner. You agree with your mate in the Lamb to buy £10m of BT and sell £10m of lgen. Your mate does the opposite. 3 months ater you both do the opposite to get back to where you were, except, at 1.65% dealing charges your associate stock broker charges per trade, you transfered £50k from the fund to your company for two phone calls. There are lots of other hidden charges.

I'm here, in lgen, because they are the ones gaining most from your fund and pension investments. If your funds are doing very well for you, then great, they are doing much better for the likes of lgen.

[woodhawk] 26/6/2020 14:09

PO, that pretty sums up what I've been doing - self-select shares ISAs has been the way for me for the last decade. Hence largish income from divis and trading profits and no tax.

[pierre oreilly] 26/6/2020 14:05

fg, I take it you are an ifa, and that explains an awful lot.

[financeguru] 26/6/2020 14:04

PO.... I take it you are a "french pike" explains an awful lot.

[zac0_4] 26/6/2020 13:59

PO - you are correct there are charges with funds but not as high as you might think. And don't forget you've trading costs with shares. So, if you reinvest your dividend payment each year you've a 0.5% stamp duty cost and a £10.95 (??) trading cost to factor into the equation.

[zac0_4] 26/6/2020 13:48

Hi EJ - Thanks for the reply. I am aware of investment trusts and have a couple of holdings (SSON is worth a look - but not advice!). The downside to me is that as they are traded like shares it's probably not worth investing less than £500 (maybe £1,000) due to trading costs. I like funds as if I've a spare £100 I can top up at no cost at all. Good luck in your investing.

[financeguru] 26/6/2020 13:43

PO as I said don't come back with the mantras. You are wrong and clearly pig headed with it. trying to invest in anything including pensions require some knowledge and if as in your case you venture into a world that you know little about you are going to make mistakes and sometimes pay dearly for it. I would not worry about my income thank you my clients are very happy to pay my fees for the benefit they receive. Your penny income/investing would probably not meet my minimum requirement.

Please do not respond as I will not waste my time trying to help those that will not be helped.

[pierre oreilly] 26/6/2020 13:24

I couldn't care what you are fg. (and being an ifa doesn't make you brain of britain, far from it).

There have been proper academic reports looking at the costs taken out of pensions, and their conclusions were that charges make up half the gain made in them. Not me saying that, but qualified academic economists (who sometimes are the brain of britain). It's just numbers and research - just flogging them gives you no particular insight.

I'm sorry if this fact is a threat to your income, so i suppose you have to think, and probably actually believe, charges are minimal.

Where does your salary come from? Where do the million pound city bonuss come from?

[financeguru] 26/6/2020 13:04

PO your reference to pensions and charges and performance are so completely wrong as to be almost criminal. Instead of just repeating the negative mantras you should perhaps "look under the bonnet".

Before you come back at me with more mantras I should tell you that I am an IFA and have knowledge of which I speak.

[zac0_4] 26/6/2020 12:41

Pierre Oreilly - People keep telling me funds don't produce. That's not something I've experienced. Yes, there are costs. But invest in the right fund and I'm happy to pay those costs. Compare this share, which I'm invested in, to my best performing fund. Total return here over the last 5 years is 15%. Total return over the same period, nett of fees, from L&G Global Tech fund is 204%. Costs associated with the fund, as it's basically a tracker fund, are 0.32% pa. You do the maths!

[pierre oreilly] 26/6/2020 11:30

zac, there's something wrong if your shares underperform any funds you have.

Buying shares directly is like buying wholesale, and funds like buying retail. Pensions for example invest in the same wholesale stuff you can, and take out half the profit, giving you the remnants. It's just that the profit, on average, is so large after 30/40 years that half of it seems to keep people happy. They have to be much better stock pickers than you (and much better than purely random) to make up for what they take in charges (total charges, not just the 1%pa or whatever they tell you about, but even that 1% is bad enough!).

It's just exponential maths. The opposite of mortgages, where you pay masses of interest compared to capital over the term. Invest direct, and reinvest divis and you get the benefits of exponentiation (aka the 'magic' of compounding) - small to start with, but very big after 20 years eg. If you get 7% compounded for 20 years that works out a lot.

[bothdavis] 26/6/2020 09:05

I agree, long term holdings for me too. I am hoping that the yield on my portfolio will significantly enhance my pension income, so I buy, hold, reinvest dividends...so more dividend income for retirement, hopefully!!

[skinny] 25/6/2020 21:45

EJ your sentiments are true for a lot of us long term investors - I personally bought these @99.89p (as I've of posted over the years) but it comes down to timing - not just longevity.

[zac0_4] 25/6/2020 21:23

Hi EJ - I totally agree with your sentiment. I, too, invest for the long-term having started to develop my own portfolio around 20 years ago. I don't trade. I simply buy and hold. However, irrespective of market conditions, I think it's important to regularly compare how individual holdings perform against each other. This share, compared to a number of my other holdings, is seriously lagging behind. Look at the 1, 3 and 5 year performance at -14%, +2% & 13%. Compare this to +38%, +85% & +202% which I've enjoyed from L&G Global Tech fund, or +15%, +46% & +109% from Rathbone Global Opportunities as just 2 examples. All my individual shares underperform my better fund holdings. It's probably my poor choice of single holdings!!