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  • FIRST POST
    • mgarl10024
    • By mgarl10024 9th Oct 16, 3:11 PM
    • 514Posts
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    mgarl10024
    Pension/Investments - Combining Pots and Fund choices.
    • #1
    • 9th Oct 16, 3:11 PM
    Pension/Investments - Combining Pots and Fund choices. 9th Oct 16 at 3:11 PM
    Hi all,

    This is really to do with my pension, but the question is more about the investments inside so I'll try here.

    From time with an old employer I built up a pot of about £13k. The pot is now managed by Zurich, and is currently in http://factsheets.financialexpress.net/ZCPBF/EverythingEverywhereOMP_ICFV.pdf
    There are currently charges of 0.46%, but no other fees. I am also free to transfer out with no other exit fees.

    I also have a similar sized pot, which I have with HL in a SIPP, and have invested that into Vanguard's LifeStrategy 100%. I chose Vanguard as they come highly recommended on many forums and blogs, appears well diversified, and I chose 100% Acc because this pot will not be touched for 20-30yrs and so I can ignore the turbulence now and perhaps switch it gradually for something less variable as my retirement date approaches.
    https://www.vanguard.co.uk/uk/portal/detail/mf/overview?portId=9232&assetCode=BALANCED##portfolio data
    Charges here are 0.45% to HL, and 0.24% to Vanguard (0.69% total).

    In the next year or so, I may be able to add a further £20k or so (I run a limited company and so have flexibility on how and when). I can only add this to the HL SIPP (or elsewhere) but not the Zurich fund as I am no longer with that employer.

    So, a few questions:
    a) Is the Zurich fund a 'good' one? Charges look good (I can't find lower when you combine the Vanguard fees and the Broker fees). However the charges are irrelevant if the fund isn't appropriate.
    Looking at both funds, they both seem about 25% in the UK, whereas the Vanguard fund seems more US centric? Should I keep it where it is? Should I sell, transfer, and buy Vanguard creating just a single pot? How do I even start going about making this decision?
    b) HL seem expensive. Looking through the Monevator list, Close Brothers and Best Invest seem more competitive (0.25% or 0.3% compared with HL's 0.45%). Switching from HL to either of these seems sensible whether I move the Zurich fund or not, and the £25 exit fee from HL would be recovered in the first year alone. Does anyone have experience with either of these? Can anyone recommend anyone else? Any thoughts on whether a move is sensible?

    Any help appreciated!
Page 1
    • bigadaj
    • By bigadaj 9th Oct 16, 6:35 PM
    • 7,842 Posts
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    bigadaj
    • #2
    • 9th Oct 16, 6:35 PM
    • #2
    • 9th Oct 16, 6:35 PM
    Can't find much detail on the Zurich funds on trustnet, looks ok but has a very weird benchmark, possibly indicating it's performing better than it actually is.

    Also I would check if there other charges from teh constituent funds as its has sub funds, 0.46% is fine but there could be hidden charges.

    Otherwise in relation to vanguard then that looks fine to me, hl are relatively expensive so a transfer out could be good.

    I've recently transferred out from close bros on a legacy contract which I complained about, didn't get anywhere but they were misleading in my opinion on their charging structure.

    I use bestinvest for a current sipp and all is fine with them in my limited interactions.

    One thing to consider is that once you get a little larger in terms of funds, possibly around £30k or more, then fixed fee providers will become more attractive than those charging percentages.

    have a look on monevator for various changing structures.
    • bigfreddiel
    • By bigfreddiel 9th Oct 16, 8:03 PM
    • 4,071 Posts
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    bigfreddiel
    • #3
    • 9th Oct 16, 8:03 PM
    • #3
    • 9th Oct 16, 8:03 PM
    I think you need to employ an IFA, be well worth the cost for some professional advice and ongoing support.

    Cheers fj
    • mgarl10024
    • By mgarl10024 18th Oct 16, 12:21 PM
    • 514 Posts
    • 335 Thanks
    mgarl10024
    • #4
    • 18th Oct 16, 12:21 PM
    • #4
    • 18th Oct 16, 12:21 PM
    have a look on monevator for various changing structures.
    Originally posted by bigadaj
    Hi bigadaj - thanks for all your comments - very useful.
    That monevator list is the one I've been working through.
    Incidentally, have you seen snowman's spreadsheet kicking about. I did a search and the google link seems dead?

    I think you need to employ an IFA, be well worth the cost for some professional advice and ongoing support.
    Cheers fj
    Originally posted by bigfreddiel
    Hi fj - thanks.
    I thought I was doing a pretty good job as I'm simply comparing the costs of brokers (easy-ish).
    The bit I'm currently asking for help on is comparing two funds which seem similar. Surely people do this all the time without resorting to an IFA? And at my levels of investment, I doubt an IFA would be interested, or the costs would be disproportionate?
    • dunstonh
    • By dunstonh 18th Oct 16, 12:29 PM
    • 85,141 Posts
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    dunstonh
    • #5
    • 18th Oct 16, 12:29 PM
    • #5
    • 18th Oct 16, 12:29 PM
    he bit I'm currently asking for help on is comparing two funds which seem similar. Surely people do this all the time without resorting to an IFA? And at my levels of investment, I doubt an IFA would be interested, or the costs would be disproportionate?
    IFAs are usually best with the more complicated case, larger cases or where people dont know the issues or dont have the time and prefer to employ someone to do it.

    Some Zurich plans do have quirks. For example, the old Allied Dunbar plans often had an annual management charge whilst you were making contributions (along with a contribution charge) and were quite expensive. However, if you ceased the contributions and made the plan paid up, they not only stopped the contribution charge but they also stopped the annual management charge too. On their paperwork they would say the fund had a 1% (or whatever) charge. However, you had to dig deeper to find out that they did not charge it on paid up plans.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
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