investment wrappers

GeoH_2

I have been advised by an IFA to put all my current investments and future investments into a Transact wrapper,

IFA will not take anything on existing investments being transfered. But 0.5% will be deducted by the Transact wrapper company.

Transact will 0.5% on all other investments and take a 0.6% per quarter of fund value

IFA will get 0.25% per quarter of fund value and 3% of any new investments.

What my questions are?.
Is this wrapper system any good.
Are the charges competitive.

I really need someone to organise and manage my investements

Ta

George

dunstonh

Transact are quite well priced for larger transactions and can work out cheap over the longer term, particulary if there are going to be switches. Family members can be linked to your account, not for transaction purposes obviously but as values. The more money a family collective have, the cheaper it is.

Personally, i see no need for wrappers like that. There is nothing the wrap can do which decent back office software can do for free. The fund supermarkets can offer most of what you need and just as cheap, if not cheaper in some circumstances. Although, as I said, larger holdings could find the transact charging structure favourable over time.

If I was to comment on charges, I would suggest you get an IFA that is paid 0.5% on fund value (which is industry standard) and pay only 1% on initial investments. The incentive then is to service the money that is held and not pay the adviser to place the money.

So, in summary, transact does the job. They are a quality provider who do offer a bit more than a fund supermarket but you do pay for that bit more. You could find the same service cheaper with alternatives but it depends on what servicing you want.