New Aviva Pension - Portfolio choice

BLB53

You are wrong. Look at the Cavendish website.

Always happy to stand corrected - and yes, amazed at this 0.4% total charge on quite a decent range - are there any other charges with AMC? Its a bit confusing when others have TER or now Ongoing charges! What is the difference?

sterlingstash

Many of the funds available within the personal pension have additional AMCs and manager expenses, so if you want to go for the well known funds like Invesco perpetual, Blackrock Gold & General etc, then you could be looking at an additional 0.9% or more on top of the 0.4% base AMC.

jem16

BLB53 wrote: »

Always happy to stand corrected - and yes, amazed at this 0.4% total charge on quite a decent range - are there any other charges with AMC? Its a bit confusing when others have TER or now Ongoing charges! What is the difference?

With pension funds the AMC is the TER ( or Ongoing Charges as it's now called) so the only additional charge is when choosing some of the external funds.

Jack_Griffin

I had to look up TER & AMC, hope this helps... http://monevator.com/what-is-ter/

mania112

jem16 wrote: »

With pension funds the AMC is the TER ( or Ongoing Charges as it's now called) so the only additional charge is when choosing some of the external funds.

Not quite true, there are additional charges that aren't explicitly shown, but none that are highlighted in the Cavendish offer.

If you were to invest in Aviva's Multi-Asset fund range, for example, the AMC's are 0.35% or 0.5% with a slightly hidden additional fund charge of 0.6%.

mania112

Here's a page of an illustration, those 3 charges need to be added together... (one of which is zero)

http://i47.tinypic.com/es8a3r.jpg

dunstonh

I may be wrong but I would be amazed if Aviva were charging just 0.4% for the whole package given their charges in the past for PPs were of the order of 1.7% on average.

Aviva havent offered charges at that level on internal funds for the best part of 15 years. 0.4% is easily achievable. Done several at that cost this year already.

Pension fund AMCs should be compared to UT/OEIC TERs for a like for like comparison. Aviva's contract is a little different as it has a base price (Say 0.40% but then some funds may have additional charges on top of that base price e.g. 0.40% with FMEC of 0.20%. That would be a .60% TER)