Best SIPP for passive investor?

jem16

racing_blue wrote: »

Thanks Jem16. It is significantly less.

To share in the long term growth of global equities, I am currently paying HL's charge of £24 per year and Vanguards annual management charge of 0.33%. A very fine deal but the terms are changing.

From 1st March HL will charge 0.45% per year. The total cost of holding the Vanguard Lifestrategy 100 fund in a HL SIPP will rise to 0.78% per year, rather than (0.33%+£24).

That wasn't what I was asking though.

What I meant was how the charges of the fixed fee SIPP plus AMC of the Vanguard fund stacked up against the PP AMC which includes the fund charge?

racing_blue

Jem16, thanks, I am trying to understand.

Taking an example recommended above, I looked up the annual management charge for a Scottish Widows personal pension through Cavendish Online and it would be 0.5% "choosing to invest in basic internal funds".

Following the links to the Scottish Widows funds, and I would be looking at global equity, these quote a total expense ratio of 1%?

jem16

racing_blue wrote: »

Jem16, thanks, I am trying to understand.

Taking an example recommended above, I looked up the annual management charge for a Scottish Widows personal pension through Cavendish Online and it would be 0.5% "choosing to invest in basic internal funds".

Following the links to the Scottish Widows funds, and I would be looking at global equity, these quote a total expense ratio of 1%?

I'll assume you mean Scottish Life as I didn't see an option for Scottish Widows through Cavendish.

That means that the charge is 0.5% if you go through Cavendish Online and 1% if you go direct to the provider - ie the full retail price.

racing_blue

Er whoops, you are right, I meant Life. Not sure how the widow sneaked in there! 100% equity probably no place for widows or orphans anyway.

Linton

racing_blue wrote: »

Thanks for that, perfect. Confirms that interactive investor and Bestinvest are pretty much top of the pile and gives net annual cost of 0.38%-0.54% based on similar assumptions to above.

BestInvest have yet to declare their RDR compliant charges. Currently they dont offer clean funds.

racing_blue

What do I know, but it all seems rather opaque.

Bottom line, I'm unwillling to pay the SIPP provider a % of the value of the pension each year. There seem to be alternative offering a set fee, and I'm planning to vote with feet/wallet.

madeinireland_2

I've seen in another thread that ii have confirmed they won't be changing their charges - which given the statement above makes then the front runner for me.