The Cavendish Online FundSupermarket Pension

MiserlyMartin

About to launch they say, a pension with an annual fee of just 0.30%. Access to over 2,300 funds on the FundSupermarket and only pay the fund charge, a 0.25% platform fee to FundsNetwork and a 0.05% annual fee to Cavendish Online. Its on the pensions section of their website

On typical funds the charges will be broken down as:
Fund Charge 0.75%, FundsNetwork fee 0.25%, Cavendish Online fee 0.05% = Total Charge of 1.05% per year
On typical tracker funds the charges will be broken down as:
Fund Charge 0.10%, FundsNetwork fee 0.25%, Cavendish Online fee 0.05% = Total Charge of 0.40% per year


My question is how much better is this compared to their old broker schemes of about 0.5% direct to the pension company??Yes it seems low cost but that depends on the funds you choose

greenglide

The funds are the ones on fundsnetwork which is the 2000+ range that Fidelity provide.

Fidelity do this for their platform charge of .35%.

It makes no real difference who the SIPP provider is (I assume you are talking about a SIPP) if the same funds are the same.

mania112

Just to clarify guys:

Fidelity pension is the same as the pension on Funds Network, they're the same company and we're talking about their new pension offering on their platform (which has previously been just for ISA and investments).

The fidelity funds network pension is 0.25% pa (not 0.35%) plus £45 pa.

You'll pay an extra 0.05% if you go thru cavendish.- alternatively you can access this pension via an IFA.

jem16

mania112 wrote: »

The fidelity funds network pension is 0.25% pa (not 0.35%) plus £45 pa.

You'll pay an extra 0.05% if you go thru cavendish.- alternatively you can access this pension via an IFA.

The price you are quoting is when investing via an adviser. Cavendish Online are acting as the adviser and charging 0.30% but with no £45pa fee.

The DIY version of the SIPP through Fidelity Funds Network is 0.35% as greenglide says.

https://www.fidelity.co.uk/investor/pensions/fidelity-sipp/charges-fees.page

mania112

So if you want some admin done on your pension if you go via the cavendish route, will cavendish do it?

Normally on these platforms, the provider doesnt want to deal with a client directly.

jem16

mania112 wrote: »

So if you want some admin done on your pension if you go via the cavendish route, will cavendish do it?

Yes they do. Basically Cavendish are not offering advice but will deal with all of the other stuff.

mania112

they must have massive numbers to be able to do that for 0.05% pa.

(because there are no kickbacks any more, riiiight??!)

jem16

mania112 wrote: »

they must have massive numbers to be able to do that for 0.05% pa.

The whole point is that once the SIPP is set up, you have full control via online access just as the DIY Fidelity SIPP which is available to DIY clients as per the link I gave in my earlier reply. Fidelity doesn't just offer products to the IFA market as you appear to think. So in most cases Cavendish have to do very little once it's set up.

(because there are no kickbacks any more, riiiight??!)

Correct.

bigadaj

This could be analogous to the travel agent scenario. Used to be a good business but once the internet comes along people are happy to go direct online if the price is right, and the only agents that survive are those that are specialist or top end to justify the extra expense, maybe the same future for IFAs?

pathsofdarkness

Is there any indication of when they will launch so that people can apply?

Are there any articles on MSE or elsewhere which say if this is a good option?

dunstonh

Are there any articles on MSE or elsewhere which say if this is a good option?

MSE tend to avoid regulated investment options (and when it has dabbled in the past, it has often used incorrect or obsolete information).

Its not the cheapest on the market but its not the most expensive. However, and I do not mean to sound rude by this, but if you cannot work it out for yourself then that sort of pension product is highly unlikely to be suitable for you.