Aviva CIS Sustainable Diversified

Keybiz

Yes, the best advice is the ISA for sure, then UT, then Bond in most cases.

It was wrong for the adviser to suggest Bond is cheaper as it negates the 5% upfront. A Unit Trust is cheaper in the long-run

The fund has performed reasonably given it's risk rating. Since lauch it is ranked quartile 1 vs. IMA Cautious Managed Avg. and was highlighted positively in a Which investment article. It is also a highly ethical based Unit Trust which has positives for the environmentally conscious but obviously limits the investments it may consider.

To clear up the 'so what' debate, from my knowledge, Co-op advisers have no commission bias whatsoever, so should be offering the correct solution at all times if they want to remain in the industry as per any IFA.

IFA's rarely pick products that sell them the lowest commission. evidence to support that wild claim? Especially as most have already moved to agreed remuneration.

Not from my experience, agreed remuneration simply means client can choose commission or fee. When presented with an hourly rate of over £100.00 for example, or commission, it is very easy to see many clients bulking at an hourly rate. It plays into the hands of IFA's seeking trail maximisation.

dunstonh

Not from my experience, agreed remuneration simply means client can choose commission or fee. When presented with an hourly rate of over £100.00 for example, or commission, it is very easy to see many clients bulking at an hourly rate. It plays into the hands of IFA's seeking trail maximisation.

Lets say we have a bond of £100k. Not likely to be smaller as it gets harder to justify smaller bonds. The IFA charges £1000 and all commission is rebated except £1000 to cover the fee.. CIS sales rep gets 3% £3000. We dont know how much CIS are taking. Probably the other 3%. So, CIS agent gets 3x more and client pays charges based on full commission instead of the lower charge via the IFA because of fee basis and rebated commission.

You are right that many dont like hourly rate. Its too open ended and leaves a fee to be unknown. However, fixed priced fees are very popular.

jem16

dunstonh wrote: »

CIS sales rep gets 3% £300..

Did you mean £300 Dh or is that a typo and it should read 3% £3000?

dunstonh

thanks jem, I clicked the wrong key. I corrected it.