MONEY MATTERS with Scott Woods of Bingham-Woods Independent Financial Advisors, Spalding

Staff at Bingham-Woods Independent Financial Advisors, Spalding.  Photo by Tim Wilson.
Staff at Bingham-Woods Independent Financial Advisors, Spalding. Photo by Tim Wilson.

Make time to review your ‘dinosaur investments’

Around £400 billion is held in investment funds that are not suitable in the modern world, according to global financial advisors Hargreaves Lansdown. 
The company said some of the investment funds in which money is held date back to the 1970s and have since become outdated as more recent investments charge less and the internet makes them more portable and accessible. 
Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “These dinosaur investments are the funds that time forgot as, when launched, they may well have been top of the food chain.

Money Matters by Scott Woods.

Money Matters by Scott Woods.

“But since then, they have been superseded by more modern products as older offerings have often failed to keep up because they were built for a bygone era. “In many cases, providers aren’t even promoting them anymore so upgrading them is likely to be a low priority for these companies.” 
One such investments is a with-profit fund - popular in the 1970s, 80s and 90s which then fell into disrepute at the turn of the century when investors’ policy values were cut. 
According to Hargreaves Lansdown, around £220 billion is thought to still be invested in with-profits funds, with around £100 billion still invested in underperforming stakeholder pension funds. 
Meanwhile, a further £75 billion remains invested in fund manager ISAs - an older method of accessing stocks and shares. 
Child trust funds are another “dinosaur investment”, with around £5 billion though to be invested in them, despite the fact that no further payments are being made into them by the Government. 
As a result of these sums, Hargreaves Lansdown has urged investors to review even their recent investments and seek financial advice if they need help managing their portfolios.

Laith Khalaf said: “It makes sense to keep on top of your investment portfolio by making time for a regular, annual review.”

These dinosaur investments are the funds that time forgot and, in many cases, providers aren’t even promoting them anymore

Laith Khalaf, senior analyst at Hargreaves Lansdown