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  • FIRST POST
    • zebra
    • By zebra 8th Sep 17, 10:05 AM
    • 12Posts
    • 1Thanks
    zebra
    Anyone care to decide what they think of this investment fund?
    • #1
    • 8th Sep 17, 10:05 AM
    Anyone care to decide what they think of this investment fund? 8th Sep 17 at 10:05 AM
    Legal and General "Primary fund" was recommended to me by Nationwide BS. I can't find any independent opinions about it online. Do any of MSE forum users fancy having a peek & proffering an opinion?

    I can't post links, but it's top link if you google "nationwide fund range primary legal and general"

    I would be switching into this from a more conventional type of investment wrapper, which Nationwide calls a "Portfolio investment". About £25k total.

    NWide says the Primary fund has advantage of more indexed management, lower management charges and "simplicity" because it's just one line summary to compare old & new balance. The Primary Fund is still spread across a range of risk levels/asset classes. I think only 8 actual fund choices to achieve that spread, though. I've had good experiences with L&G before.

    It suits me to keep using Nationwide as fin. advisor, so only question is whether I want to go to the L&G Primary Fund. I want a relatively hands-off approach with this investment pot, review it every 4-6 yrs maybe. I'm looking for long-term growth but not saving for anything specific.

    Thanks to anyone who feels curious enough to have a look at the link & give an opinion!
    Be ALERT - The world needs more LERTS
Page 2
    • dunstonh
    • By dunstonh 9th Sep 17, 12:07 PM
    • 89,603 Posts
    • 56,092 Thanks
    dunstonh
    It's certainly expensive and poor but as an ifa could you really say the 0.4% charge is expensive?
    Yes. Because Nationwide Primary funds is not a full advice service. Its a self directed service. You could compare it to robo-advice options.

    The OP seeme to have invested £25k, so an ifa would typically want 3% set up and 1% ongoing, even then would many want to deal with someone on the basis of £750 upfront and £250-£300 a year ongoing?
    The OP doesnt need ongoing servicing. They have said they just want someone every 3-5 years. So, transactional is better. So, there would be no 1% p.a. IFA charge (and no 0.4% nationwide charge) but perhaps a £250-£500 charge every 3-5 years. As the OP likes L&G funds, the IFA could use L&G directly and cut out the cost of the platform (superclean share class is not available direct but its cheaper than platform plus superclean)

    The adviser has to make money but surely the sums involved here are just to small to benefit from advice.
    It could easily be cheaper. Certainly would be if the value was higher. However, the big problem would be finding an IFA willing to deal with someone with that sort of amount. You would be looking for a new IFA or trainee (although what the op wants is so basic, trainee is not a problem). Most IFAs are not going to be interested.

    Another consideration is that the OP bought the investment pre-RDR. So, at purchase, it was bundled funds using the expensive (N) L&G funds. It is post RDR now and the Nationwide process is different. It has been dumbed down but they are still charging on an ongoing amount that is 0.1% lower than what they were on the pre-RDR stuff. However, the platform cost is more than 0.1% difference.

    This is where robo-advice solutions are likely best in this scenario.
    Last edited by dunstonh; 09-09-2017 at 12:10 PM.
    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 an Independent Financial Adviser local to you.
    • Eco Miser
    • By Eco Miser 9th Sep 17, 1:19 PM
    • 3,179 Posts
    • 2,944 Thanks
    Eco Miser
    All looks very expensive and I struggle to understand why people tie up their investments with high street banks when there are such superior and simpler options with Vanguard who will do platform and VLS fund for 0.37pc total.

    I wouldn't invest too much time trying to determine which bad high street choice is better or least worse.
    Originally posted by Alexland
    One of the High Street banks actually has an investment platform that can be cheaper than Vanguard's, since it is flat-fee, and zero % flat-fee at that.
    It's not Nationwide Building Society though.
    Eco Miser
    Saving money for well over half a century
    • IanSt
    • By IanSt 9th Sep 17, 8:57 PM
    • 128 Posts
    • 82 Thanks
    IanSt
    One of the High Street banks actually has an investment platform that can be cheaper than Vanguard's, since it is flat-fee, and zero % flat-fee at that.
    It's not Nationwide Building Society though.
    Originally posted by Eco Miser
    Which one is it then? I wonder if they make it up by offering a poor/expensive list of funds or expensive trading?
    • grey gym sock
    • By grey gym sock 9th Sep 17, 9:30 PM
    • 4,131 Posts
    • 3,643 Thanks
    grey gym sock
    Which one is it then? I wonder if they make it up by offering a poor/expensive list of funds or expensive trading?
    Originally posted by IanSt
    i guess that refers to halifax share dealing (a.k.a. iweb), which is owned by lloyds banking group.

    however, i very much doubt that, if you walk into a lloyds branch, and ask about investments, they'll even mention that cheap platform.
    • bigadaj
    • By bigadaj 9th Sep 17, 11:02 PM
    • 10,725 Posts
    • 7,012 Thanks
    bigadaj
    Which one is it then? I wonder if they make it up by offering a poor/expensive list of funds or expensive trading?
    Originally posted by IanSt
    Nope, it's arguably the cheapest platform available for moderate to large portfolios.

    There's a few complaints about a lack of some funds, trading isn't as cheap as some but no more expensive than most, so a good option for many with a high five to six figure portfolio who don't trade too often.
    • dividendhero
    • By dividendhero 10th Sep 17, 1:15 PM
    • 103 Posts
    • 84 Thanks
    dividendhero
    Goverment bonds are good long term investments
    Originally posted by bengalknights
    Presumably you're talking about UK Govt bonds?

    I wouldn't put a penny of my money in them. They're overpriced via the BoE's QE program and the Govt debts are so high the only way out of it is for Govt to inflate it's way out of trouble
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