Comparing Pension Charges / TERs etc.

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Comments

  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    Rather than continue to speculate, I suggest you check with HL. RIYs are not normally used with SIPPs because the charge for the wrapper is separate from the charge for the investments within it.
    Trying to keep it simple...;)
  • dunstonh
    dunstonh Posts: 116,258 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    RIY will be used with SIPPs from April when it becomes regulated. HL may be offering the information now in readiness of that.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • moneyandmountains
    moneyandmountains Posts: 231 Forumite
    I have received a response from H&L:

    "The reduction in yield figures that you see in the key features are provided by the groups and as well as the annual charges, they take account of the initial charge that is applicable to purchase of the fund. However the figures do not take into account any saving on the initial charge provided by a financial intermediary such as ourselves.

    What you are seeing in the reduction in yield figures for the Artemis European Growth therefore is the effect of the annual Total Expense Ratio of 1.54% and a full Initial Charge of 5.25% being applied to the purchase. No account is taken of the 5% saving on this charge that we offer. We hope soon to be producing reduction in yield figures that do take account of our savings on the initial charge, however these are not presently available."

    So H&L is actually pretty good.
    However, I thought the point of RIY and TER figures was to make easier to compare charges for the investor. Apparently not.

    An additional unknown is the following statement:
    "One difference between the SIPP account and the other Vantage accounts is that there is no annual loyalty bonus payable on funds held in the SIPP. This is the annual renewal commission that we share with you in the other Vantage accounts. We have been informed by HMRC that such payments are not permissible from a SIPP account."

    Whether this makes the SIPP 0.25% a year more expensive or not than the equivalent ISA is anyone's guess.
  • dunstonh
    dunstonh Posts: 116,258 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Whether this makes the SIPP 0.25% a year more expensive or not than the equivalent ISA is anyone's guess.

    TERS wont consider the rebate. TER data would be supplied by the fund house and assumed on normal charging. Rebates would not come under TER but should come under RIY.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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