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  • FIRST POST
    • Yanling
    • By Yanling 8th Feb 18, 11:40 AM
    • 45Posts
    • 5Thanks
    Yanling
    Nutmeg fully managed portfolio for pension
    • #1
    • 8th Feb 18, 11:40 AM
    Nutmeg fully managed portfolio for pension 8th Feb 18 at 11:40 AM
    Hi there, Has anyone got an experience with Nutmeg fully managed portfolio for pension? Any comments? Thank you!
Page 1
    • dunstonh
    • By dunstonh 8th Feb 18, 12:17 PM
    • 91,128 Posts
    • 58,147 Thanks
    dunstonh
    • #2
    • 8th Feb 18, 12:17 PM
    • #2
    • 8th Feb 18, 12:17 PM
    Do you like paying high charges for an DIY option in a company with poor financials?

    Their ongoing charges are higher than an equivalent via an IFA and higher than most other similar DIY options. (its not 0.75% as they say. Its 0.75% plus 0.19% for the investments plus 0.10% for effect of spreads = 1.04%)
    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.
    • Farel01
    • By Farel01 8th Feb 18, 5:43 PM
    • 94 Posts
    • 115 Thanks
    Farel01
    • #3
    • 8th Feb 18, 5:43 PM
    • #3
    • 8th Feb 18, 5:43 PM
    Ok, different opinion. I have part of my pension with Nutmeg, was able to get the first year managed for free so that was a bonus. Reasons why I have Nutmeg:

    - I can see performance without having to spend hours putting figures together. My workplace pension is with Legal And General and I can see what I'm invested in but I have no idea how it's doing.
    - I have talked to 2 IFA firms. About 4 hours of talking, sending over documents, figures etc and then ... nothing. The second firm came back 3 months later saying they fired the first adviser and they had assigned me a new one but would need to go through discovery again. Yeah. no.

    It's done well for me the last year, good returns so I'm not complaining. Might move it at some point but happy for now.

    But, as dunstonh says, you can do it all for much cheaper.
    Last edited by Farel01; 08-02-2018 at 5:45 PM.
    Debt free as per 22/12/16 -
    • Yanling
    • By Yanling 8th Feb 18, 10:07 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    • #4
    • 8th Feb 18, 10:07 PM
    • #4
    • 8th Feb 18, 10:07 PM
    Hi, thanks for the help.
    the problem is that i do not know investment at all. I have to rely on a fully managed portfolio.
    Nutmeg charge is 1.04%, return is about 8%?
    HL charge is 1.89%. it shows on their website: £5000 fully managed portfolio for 5 yrs, could earn £625 net return after all charges. is this good earning?
    • ValiantSon
    • By ValiantSon 8th Feb 18, 10:12 PM
    • 858 Posts
    • 695 Thanks
    ValiantSon
    • #5
    • 8th Feb 18, 10:12 PM
    • #5
    • 8th Feb 18, 10:12 PM
    Hi there, Has anyone got an experience with Nutmeg fully managed portfolio for pension? Any comments? Thank you!
    Originally posted by Yanling
    Expensive compared to other options available.
    • ValiantSon
    • By ValiantSon 8th Feb 18, 10:21 PM
    • 858 Posts
    • 695 Thanks
    ValiantSon
    • #6
    • 8th Feb 18, 10:21 PM
    • #6
    • 8th Feb 18, 10:21 PM
    Hi, thanks for the help.
    the problem is that i do not know investment at all. I have to rely on a fully managed portfolio.
    Nutmeg charge is 1.04%, return is about 8%?
    HL charge is 1.89%. it shows on their website: £5000 fully managed portfolio for 5 yrs, could earn £625 net return after all charges. is this good earning?
    Originally posted by Yanling
    The return is entirely dependent on what happens in the market. 8% is a completely notional rate of return. You could get nothing, or even make a loss. That is the nature of investments.

    HL are expensive as a platform and their managed portfolios are overpriced compared to other funds available. I don't know exactly which portfolio you were looking at, but the charge you state is probably without the platform fee of 0.45% added on.

    Consider multi-asset funds such as Vanguard LifeStrategy, Blackrock Consensus and HSBC Global Strategy. (N.B. Due to a discount on the Blackrock funds, HL are actually a cheap option for holding that fund). Links below to these range of funds:

    Vanguard:https://www.trustnet.com/fund/search/vanguard%20lifestrategy (top 5)

    Blackrock: https://www.trustnet.com/fund/search/blackrock%20consensus (top 5)

    HSBC:
    https://www.trustnet.com/fund/search/hsbc%20global%20strategy (top 4)

    Also have a look at different platforms to get an idea of cheaper alternatives to HL (and Nutmeg). Use this link for a comparison table showing all charges: http://monevator.com/compare-uk-cheapest-online-brokers/
    • Alexland
    • By Alexland 8th Feb 18, 10:28 PM
    • 1,670 Posts
    • 1,136 Thanks
    Alexland
    • #7
    • 8th Feb 18, 10:28 PM
    • #7
    • 8th Feb 18, 10:28 PM
    Yanling from your previous SIPP thread you seem keen to have a fully managed portfolio but holding a single mixed asset fund inside a SIPP is almost as easy at a significantly lower cost.

    I repeat my suggestion to consider holding either HSBC Global Strategy Balanced or Dynamic (if you don't mind ups and downs) fund inside a Cavendish SIPP.

    Alex
    • Yanling
    • By Yanling 8th Feb 18, 10:37 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    • #8
    • 8th Feb 18, 10:37 PM
    • #8
    • 8th Feb 18, 10:37 PM
    Yanling from your previous SIPP thread you seem keen to have a fully managed portfolio but holding a single mixed asset fund inside a SIPP is almost as easy at a significantly lower cost.

    I repeat my suggestion to consider holding either HSBC Global Strategy Balanced or Dynamic (if you don't mind ups and downs) fund inside a Cavendish SIPP.

    Alex
    Originally posted by Alexland
    Hi, thanks for the thought, but I do not know how to rebalance the portfolio, if a fund is dropping the value I do not know how to remove it. x
    • ValiantSon
    • By ValiantSon 8th Feb 18, 10:43 PM
    • 858 Posts
    • 695 Thanks
    ValiantSon
    • #9
    • 8th Feb 18, 10:43 PM
    • #9
    • 8th Feb 18, 10:43 PM
    Hi, thanks for the thought, but I do not know how to rebalance the portfolio, if a fund is dropping the value I do not know how to remove it. x
    Originally posted by Yanling
    You don't need to rebalance because you will only hold one fund, so the rebalancing is done by the fund manager.

    Rebalancing is to do with the proportion of equities and bonds you hold, not how much the investment is worth.
    • Alexland
    • By Alexland 8th Feb 18, 10:51 PM
    • 1,670 Posts
    • 1,136 Thanks
    Alexland
    Also if the stock markets drops this will affect both a fully managed and a fixed allocation portfolio in similar ways. The active management from Nutmeg, etc is not going to protect your investments from going up and down.

    Remember it's only a loss if you sell after a fall. If you stick with a well diversified investment it is most likely to recover eventually.

    Alex
    • Yanling
    • By Yanling 8th Feb 18, 11:00 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    Cheers!
    So I do not need to rebalance by myself. the manager who runs the fund in a portfolio will rebalance it , it is right?
    Last edited by Yanling; 08-02-2018 at 11:09 PM.
    • Alexland
    • By Alexland 8th Feb 18, 11:12 PM
    • 1,670 Posts
    • 1,136 Thanks
    Alexland
    Cheers!
    So I do not need to rebalance by myself. the manager who runs the fund in a portfolio will rebalance it , it is right?
    Originally posted by Yanling
    Yup you just need to pick the mixed asset fund that matches your investment outlook and risk appetite and buy units with your contributions. The fund manager will automatically rebalance the assets within the fund.

    If you pick an accumulation fund the dividends are also automatically reinvested by the fund manager.

    Then you just need to make sure you are paying your ongoing platform fees. The fund fees are automatically deducted from within the fund.

    Alex
    • Yanling
    • By Yanling 8th Feb 18, 11:20 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    I can not believe it. it is so easy?
    I will definitely look into Cavendish tomorrow.
    Thanks so much folks!
    Good night
    • Joey Soap
    • By Joey Soap 9th Feb 18, 4:30 AM
    • 128 Posts
    • 40 Thanks
    Joey Soap
    I can not believe it. it is so easy?
    I will definitely look into Cavendish tomorrow.
    Thanks so much folks!
    Good night
    Originally posted by Yanling
    You may also choose to look at Close Bros who offer a low cost SIPP for the same 0.25% annual fee as Cavendish. At Cavendish you will use the Fidelity fund shop and I know a lot of people complain about Fidelity for poor admin and poor customer service. At Close Bros, you use their own platform and my own experience with them (3 SIPPs in the family) has been very positive.
    • Yanling
    • By Yanling 9th Feb 18, 8:49 AM
    • 45 Posts
    • 5 Thanks
    Yanling
    You may also choose to look at Close Bros who offer a low cost SIPP for the same 0.25% annual fee as Cavendish. At Cavendish you will use the Fidelity fund shop and I know a lot of people complain about Fidelity for poor admin and poor customer service. At Close Bros, you use their own platform and my own experience with them (3 SIPPs in the family) has been very positive.
    Originally posted by Joey Soap
    Hi, thanks for the help. At Cavendish, does HSBC Global Strategy include Fidelity fund shop? A I able to avoid Fidelity fund?
    • MallyGirl
    • By MallyGirl 9th Feb 18, 9:39 AM
    • 2,473 Posts
    • 7,470 Thanks
    MallyGirl
    Yanling - I would just ignore Joey's suggestion as he has confused you again when you had reached a level of comfort. For someone who is just going to hand over your money, rather than actively trading, I am sure that using the Cavendish platform to hold a mixed asset fund such as HSBC will be fine.
    • Yanling
    • By Yanling 9th Feb 18, 10:19 AM
    • 45 Posts
    • 5 Thanks
    Yanling
    Yanling - I would just ignore Joey's suggestion as he has confused you again when you had reached a level of comfort. For someone who is just going to hand over your money, rather than actively trading, I am sure that using the Cavendish platform to hold a mixed asset fund such as HSBC will be fine.
    Originally posted by MallyGirl
    Thanks MallyGirl x
    I am going to invest for pension for 12 years when I am 67. Do I need to do something by myself for the investment needs such as changing the proportion of the equality, fund, bond ect over the years?
    Last edited by Yanling; 09-02-2018 at 10:39 AM.
    • MallyGirl
    • By MallyGirl 9th Feb 18, 11:07 AM
    • 2,473 Posts
    • 7,470 Thanks
    MallyGirl
    I would do a bit more research to work out what you attitude to risk is. If you are thinking HSBC Global Strategy this will guide you to whether you are a 'Balanced' type of person or a 'Dynamic' (higher risk might lead to higher returns but it also might not).
    You then open your new SIPP on Cavendish (for example) and deposit some money. You buy your chosen fund for that money and sit back and wait till you retire. You can put more money in use that to buy the same fund. Within the fund they adjust the ratio of equity to bonds/property/cash/whatever else is in there all for you. You do not need to do anything.

    If you started out as a higher risk tolerant person with the Dynamic fund you might choose to move to a lower risk level as you near retirement. You could swap everything to the new fund or you could gradually transfer over time or you could just choose to put new money in the lower risk selection. That is something to think about in the future.
    • Yanling
    • By Yanling 9th Feb 18, 7:17 PM
    • 45 Posts
    • 5 Thanks
    Yanling
    Good evening all, Thank Alex and MayllyGirl in particular.
    I am looking into the Cavendish website, seeing HSBC global strategy funds, they have
    HSBC global strategy balanced portfolio C Acc
    HSBC global strategy balanced portfolio C Inc,
    HSBC global strategy dynamic portfolio Acc,
    HSBC global strategy dynamic portfolio Inc.
    For balanced portfolio which one should I take?
    For dynamic portfolio which one should I take?
    https://www.cavendishonline.co.uk/investments/fund-research/
    • ValiantSon
    • By ValiantSon 9th Feb 18, 8:41 PM
    • 858 Posts
    • 695 Thanks
    ValiantSon
    Good evening all, Thank Alex and MayllyGirl in particular.
    I am looking into the Cavendish website, seeing HSBC global strategy funds, they have
    HSBC global strategy balanced portfolio C Acc
    HSBC global strategy balanced portfolio C Inc,
    HSBC global strategy dynamic portfolio Acc,
    HSBC global strategy dynamic portfolio Inc.
    For balanced portfolio which one should I take?
    For dynamic portfolio which one should I take?
    https://www.cavendishonline.co.uk/investments/fund-research/
    Originally posted by Yanling
    As your current aim is to increase your wealth, you would want the accumulation version of the funds, so that would be either:

    HSBC global strategy balanced portfolio C Acc

    or;

    HSBC global strategy dynamic portfolio Acc

    Acc stands for accumulation and Inc stands for income. With accumulation your dividends are reinvested, which is what you want at the moment.
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