St James Place Charges

gadgetmind

RVS6 wrote: »

I could have an IFA set up a portfolio for me but I wouldn't have a clue when I would need to review/change funds

Neither would most IFAs as they mostly seem to outsource portfolio construction and management.

Linton

gadgetmind wrote: »

Investing is one of those areas where putting more thought/work in doesn't necessarily lead to better results. In fact, it's a bit like horse races where the horse that's lost its rider beats the others as it doesn't have as much weight on its back.

.....

As long as its going in the right direction and doesnt misjudge a fence.

gadgetmind

Linton wrote: »

As long as its going in the right direction and doesnt misjudge a fence.

In the investing world, loads of jockeys get these very wrong while simultaneously spouting on about how they are so good at getting it right.

Linton

gadgetmind wrote: »

In the investing world, loads of jockeys get these very wrong while simultaneously spouting on about how they are so good at getting it right.

I cant see dispensing with jockeys as an improvement to horse racing.

And to continue the metaphor, an arthritic old nag is unlikely to get very far with or without a jockey.

Sobryma

Interesting discussion. I think the cost depends whether you want active or passive management.

I have a SIPP through Bestinvest with ongoing advice 1.0% + VAT plus funds 0.6% largely active funds = 1.8% all in - I need ongoing advice (or at least value it). Fund size is significant.

Separately I have a low value (£30k) AEGON SIPP which has a platform cost of 0.34% non advised and the cheapest funds are probably Vanguard Life Strat 0.3% or 0.27% for Blackrock Consensus = ~0.6% pa. 0.4% is really low and presumably passives (nothing wrong with that as such). For this plan I eventually chose Cazanove Diversity range of funds TER ~1.48% so total cost is ~1.8% - but personal choice.

My choices are both top end on cost as I am in effect paying for an active manager to manage active funds.

Sobryma

RVS6 wrote: »

Managed - 1.7% (1.25% AMC + 0.45% funds)
Balanced - 1.88% (1.25% AMC + 0.63% funds)

Are you SURE the 1.25% is not + VAT a lot of managers are not open about that - 1.25% does not sound VAT inclusive....

gadgetmind

Sobryma wrote: »

I have a SIPP through Bestinvest with ongoing advice 1.0% + VAT plus funds 0.6% largely active funds = 1.8% all in - I need ongoing advice (or at least value it). Fund size is significant.

I have a SIPP with BestInvest without ongoing advice. I pay £120 inc VAT pa platform fees plus overall fees of 0.4% using mostly passive funds and some Investment Trusts. I don't need ongoing advice as rebalancing to my target allocation is trivial.. Fund size is significant.

Linton

gadgetmind wrote: »

I have a SIPP with BestInvest without ongoing advice. I pay £120 inc VAT pa platform fees plus overall fees of 0.4% using mostly passive funds and some Investment Trusts. I don't need ongoing advice as rebalancing to my target allocation is trivial.. Fund size is significant.

Bestinvest at the moment dont have Clean funds though they operate a partial rebate. They will be moving to them in the new year. I have my SIPP with them as well.

Sobryma

Linton wrote: »

Bestinvest at the moment dont have Clean funds though they operate a partial rebate. They will be moving to them in the new year. I have my SIPP with them as well.

I think most of mine are clean funds, where they aren't they rebate 100% of commission then charge the 1% - but that is as part of their Managed Portfolio Service.

Sobryma

gadgetmind wrote: »

I have a SIPP with BestInvest without ongoing advice. I pay £120 inc VAT pa platform fees plus overall fees of 0.4% using mostly passive funds and some Investment Trusts. I don't need ongoing advice as rebalancing to my target allocation is trivial.. Fund size is significant.

0.4% is good including IT charges.

I toyed with passives in the Aegon plan, having read and been impressed by the arguments in Smarter Investor. Aegon do a series of Core Portfolio's multi asset risk rated at minimal cost or mixed Active/Passive Select range low cost.

I built model portfolios on Trustnet for a whole raft of passive / active multi asset portfolio funds using Bestinvest Income & Growth oiec as a benchmark (which is very close in allocation to my BI portfolio).

I want(ed) to be convinced by passives but the ones I tracked underperformed active for a similar FE risk level (expect for Vanguard Life Strategy) - and most focus just on equity and bonds. There is also still in the UK limited options on passives (I can't access ETF's in Aegon without engaging an IFA which sort of defeats the low cost objective).

That said the passive funds were often relatively short life vs active, so will review in a few years.