Prudential closing a shed load of life/endowment/pension funds....management charges?

sunshinesadly

Greetings all...!

I'm looking for a bit of advice from someone a tad more savvy on investment funds than me!

My current mortgage is part repayment and part endowment. The endowment part is with Prudential (originally with Scottish Amicable, but there was a take-over thing).

My endowment is in two funds: the Newton Managed and the Prudential Managed Tracker. The Prudential are closing the latter and automatically transferring my funds to their Managed Fund unless I state otherwise.

I've just done a self-taught crash course in Investment Funds and looked up information on the funds available to me and the Fund Managers on Citywise and Trustnet. Can thoroughly recommend it. I actually got a bit excited about something financial. Way-hey! :cool:

Anyways, I've got it pared down to two funds. The biggest difference is the size of the management charges. See below:

Prudential International Fund
5 year total return = 31.57%
Performance = above average
Risk = medium to high (I'm happy with this by the way)
Manager = Matthew Williams (annualised total return over 9.9 yrs is +2.2%, yet Trustnet blurb says that while he performs about the same as peer group, over a long track record he underperforms his peers).
Management Charge = 0.25%

Invesco Perpetual Managed Fund
5 year total return = 54.48%
Performance = Average
Risk = medium to high
Manager = Bob Yerbury (annualised total return over 8.7 yrs is +1%. Trustnet describe him as better than peer group and consistently outperforming peer group over a long track record).
Management Charge = 1.10%

I have no idea of how the management charge might impact upon my investment and, as I'm quite new to this, would really appreicate a bit of advice you have some experience in this area.

As time goes by I'm gradually eeking the endowment out of my mortgage equation :Tso that eventually I'm on a repayment only mortgage and the endowment will act as savings vehicle.

Any advice anyone please?!!:j

dunstonh

Prudential have a good with profits fund but their unit linked funds tend to be quite poor.

Anyways, I've got it pared down to two funds

Why are you looking at having just one fund?
The risk profiles of both funds is very different. So, what risk profile are you?

sunshinesadly

Hi, thanks for posting.

My endowment is in two funds: the Newton Managed (fund manager Nick Clay) and the Pru Managed Tracker. The latter is closing so I'm being asked to pick a replacement fund. That's why I'm just looking a one fund.

The Pru have the Invesco Perpetual and the Pru International in their medium to high risk category. They also have the Newton in this category. I think the Pru Managed Tracker (the one they're closing) must have been in their medium risk category as they are automatically transferring me into a fund of medium risk. I can still do a free transfer though.

When I took out my mortgage I would say I was very risk adverse, but now I've moved on a bit and I am planning for the endowment to not form part of my mortgage so I feel able and comfortable to take more of a risk. I felt that medium to high (rather than high or very high) was probably a good place for me.

I don't think I can choose a with profits fund to switch into. It wasn't on the list that I'm able to choose from.