Equity ISA - recommendations

[dibbly_dobbler]

Hello All.

I am considering starting up an equity ISA - regular payments, long term time horizon (ie early retirement fund so 15-20 years alas!).

The front runner is Jupiter - probably one of their multimanager funds to spread the risk.

Anybody used them or have any alternative suggestions ?

Cheers, DD.

[NoelWatson]

dibbly_dobbler said:

Hello All.

I am considering starting up an equity ISA - regular payments, long term time horizon (ie early retirement fund so 15-20 years alas!).

The front runner is Jupiter - probably one of their multimanager funds to spread the risk.

Anybody used them or have any alternative suggestions ?

Cheers, DD.

What is the TER of the fund?

[dibbly_dobbler]

NoelWatson said:

dibbly_dobbler said:

Hello All.

I am considering starting up an equity ISA - regular payments, long term time horizon (ie early retirement fund so 15-20 years alas!).

The front runner is Jupiter - probably one of their multimanager funds to spread the risk.

Anybody used them or have any alternative suggestions ?

Cheers, DD.

What is the TER of the fund?

Hi Noel.

Cant find a TER but the initial charge is 5.25, the annual charge is 1.19 and the 'other expenses' figure is 1.20 (not sure what this is tbh ?).

This probably seems like a lot but if the returns are good enough then I'm not going to sweat too much about the expenses side...

What do you think ?

[NoelWatson]

dibbly_dobbler said:

NoelWatson said:

dibbly_dobbler said:

Hello All.

I am considering starting up an equity ISA - regular payments, long term time horizon (ie early retirement fund so 15-20 years alas!).

The front runner is Jupiter - probably one of their multimanager funds to spread the risk.

Anybody used them or have any alternative suggestions ?

Cheers, DD.

What is the TER of the fund?

Hi Noel.

Cant find a TER but the initial charge is 5.25, the annual charge is 1.19 and the 'other expenses' figure is 1.20 (not sure what this is tbh ?).

This probably seems like a lot but if the returns are good enough then I'm not going to sweat too much about the expenses side...

What do you think ?

The concern I have with actively managed funds is that I have found no evidence that the average active fund can beat the index on a risk adjusted period over a long period. You could argue that you would not be buying the average fund as you would be buying one that has historically shown outperformance - however, studies have shown no link bettween current outperformance and future outperformance.

If you accept that it is impossible to beat the index, I would therefore be tempted to buy a fund that tracked the index as accurately and cheaply as possible.

[dibbly_dobbler]

NoelWatson said:

dibbly_dobbler said:

NoelWatson said:

dibbly_dobbler said:

Hello All.

I am considering starting up an equity ISA - regular payments, long term time horizon (ie early retirement fund so 15-20 years alas!).

The front runner is Jupiter - probably one of their multimanager funds to spread the risk.

Anybody used them or have any alternative suggestions ?

Cheers, DD.

What is the TER of the fund?

Hi Noel.

Cant find a TER but the initial charge is 5.25, the annual charge is 1.19 and the 'other expenses' figure is 1.20 (not sure what this is tbh ?).

This probably seems like a lot but if the returns are good enough then I'm not going to sweat too much about the expenses side...

What do you think ?

The concern I have with actively managed funds is that I have found no evidence that the average active fund can beat the index on a risk adjusted period over a long period. You could argue that you would not be buying the average fund as you would be buying one that has historically shown outperformance - however, studies have shown no link bettween current outperformance and future outperformance.

If you accept that it is impossible to beat the index, I would therefore be tempted to buy a fund that tracked the index as accurately and cheaply as possible.

Thanks for your input Noel.

I'll be honest I'm not a massive fan of trackers but I can see where you're coming from. It seems like a bit of a cop out to just follow the index and it can force the fund managers to buy or sell at a bad time if they need something which has come in or out of the index.

I take your point about the evidence but these Jupiter funds have certainly done a lot better than the footsie over the last year or two. Does that mean they will continue to do so though ?!

Hmm - some pondering to do methinks.

[ukshooter]

I would suggest you research the individiual managers not the investment houses they are currently working for. It is the individual mangers that either get it right or wrong and are responsible for the over or under-performance.

As in all other walks of life, these guys move around.

There are a good number of individual managers that have consistently outperformed the relevant indices, it's just that a good few of them have moved around a bit. That can account for fluctuations in fund performance.

[dibbly_dobbler]

ukshooter said:

I would suggest you research the individiual managers not the investment houses they are currently working for. It is the individual mangers that either get it right or wrong and are responsible for the over or under-performance.

As in all other walks of life, these guys move around.

There are a good number of individual managers that have consistently outperformed the relevant indices, it's just that a good few of them have moved around a bit. That can account for fluctuations in fund performance.

Thanks Ian.

Any 'stars' that I should look out for in particular ?

Cheers, DD

[ukshooter]

There are a few that cannot be accessed directly by the general public except via company's like mine. However, some that are available would include Neil Woodford at Invesco Perpetual, Hugh Young at Aberdeen Asia, Nick Purves at Schroder, Andrew Green at GAM. Of course,it could be quite easy to pick holes in any of these choices and you should not construe this to be any kind of recommendation from me. They are purely some names that you could start researching to see whether their style of management and areas that they cover might fit with your own risk profile and objectives.

Looking at some of the other financial topics on here, it would seem that there are a number of us that are regulated financial advisers and I'm sure that any of us would be happy to give you some decent advice based on your exact circumstances should you want it.

[dibbly_dobbler]

ukshooter said:

There are a few that cannot be accessed directly by the general public except via company's like mine. However, some that are available would include Neil Woodford at Invesco Perpetual, Hugh Young at Aberdeen Asia, Nick Purves at Schroder, Andrew Green at GAM. Of course,it could be quite easy to pick holes in any of these choices and you should not construe this to be any kind of recommendation from me. They are purely some names that you could start researching to see whether their style of management and areas that they cover might fit with your own risk profile and objectives.

Looking at some of the other financial topics on here, it would seem that there are a number of us that are regulated financial advisers and I'm sure that any of us would be happy to give you some decent advice based on your exact circumstances should you want it.

Grand - thanks for the (non ) recommendation - I will of course do my own investigation as you suggest.

Cheers, DD.

[rolex]

Regards to 5.5% initial charges, if you buy the fund through a discount broker such as Hargreaves Lansdown http://www.h-l.co.uk/ you will probably save all that

Edited by rolex on Tuesday 19th May 23:35

[dibbly_dobbler]

rolex said:

Regards to 5.5% initial charges, if you buy the fund through a discount broker such as Hargreaves Lansdown http://www.h-l.co.uk/ you will probably save all that

Edited by rolex on Tuesday 19th May 23:35

Funnily enough that is exactly what I have done !

Went for Jupiter Merlin through HL as a start. Will seek out others in due course.

Cheers, DD.