The Cavendish Online FundSupermarket Pension

puk999

I recently did a change of agency on my Fidelity ISAs to Cavendish which reduced my platform fee from 0.35% to 0.25%.

Wonder if I can do the same with my Fidelity SIPP to reduce fee from 0.35% to 0.3%. Only got £60k there currently, so a fairly small saving of £30/annum, but rather in my pocket than theirs! I have a few gripes with the Fidelity SIPP though, so am thinking about moving away from FundsNetwork altogether. The main thing stopping me is they gave me a 1% financial incentive to transfer my pension from Standard Life with the stipulation that I keep my pot with them for at least 2 years.

SnowMan

zagfles wrote: »

I can't see anything about drawdown charges. Do they allow drawdown without advice? I guess if not you could just transfer to someone else when you want to drawdown.

My understanding is that they don't allow drawdown without advice currently. The blurb I've got in opening a SIPP with Fidelity a few days ago seems to confirm that. That has to change at some point I guess.

But for someone like me who is a considerable number of years off being able to access benefits, then the ability to leave without charge in the future is the important thing rather than what they currently offer drawdown wise.

puk999

SnowMan wrote: »

The Fidelity platform is now offering access to Vanguard funds...

https://www.fidelity.co.uk/investor/fund-supermarket/vanguard.page

I did a search a few weeks back for Vanguard on Fidelity and saw a few results but didn't see their LifeStrategy range IIRC. They are now there. Are they a very recent addition to FundsNetwork?

SnowMan

puk999 wrote: »

I did a search a few weeks back for Vanguard on Fidelity and saw a few results but didn't see their LifeStrategy range IIRC. They are now there. Are they a very recent addition to FundsNetwork?

I asked Fidelity back in February (2014) whether they had any intention of adding Vanguard funds to the platform, and they said they had no plans.

I've not looked since, but came across their existence accidentally a few days ago when in their fund search tool. I then did a google search for 'Fidelity Vanguard' or something and found that Fidelity page about them. So can't answer your question but it could be quite recently as I've not heard anyone else mention it.

Worth remember that Fidelity have its own range of trackers, and so would get extra revenue through investors using those rather than the Vanguard funds. Perhaps why they seem to have been very quietly added.

puk999

SnowMan wrote: »

Worth remember that Fidelity have its own range of trackers, and so would get extra revenue through investors using those rather than the Vanguard funds. Perhaps why they seem to have been very quietly added.

Good point. The core of my portfolio is the Fidelity Index World P Acc which tracks the MSCI World Index. This index doesn't include emerging markets but I would like some exposure to them. Was thinking of using an active component (like Lazard Emerging Markets Institutional Acc) but I see the Vanguard LifeStrategy includes some emerging, so might go with that. I'm unsure whether emerging and passive are good partners? Active managers can consider corporate governance and political concerns whereas a "dumb tracker" cannot.

Probably a topic for another thread! Thanks again for pointing me towards VLS on Fidelity :beer:

crystal_pixie_2

Hi,

Just wondered now this pension has now been announced if anyone has had any experience of this?

I am seriously considering transferring some funds into either their SIPP or Hargreaves Landsdown.

Both look good funds and HL seem to have loads of help and information on their site.

Anyone had experience of either of these companies before I part with my hard earned cash?

SnowMan

crystal_pixie wrote: »

Hi,

Just wondered now this pension has now been announced if anyone has had any experience of this?

I am seriously considering transferring some funds into either their SIPP or Hargreaves Landsdown.

Both look good funds and HL seem to have loads of help and information on their site.

Anyone had experience of either of these companies before I part with my hard earned cash?

I've just opened a Fidelity SIPP. Has been very straightforward. As the Cavendish SIPP uses the same Fidelity platform the experience should be similar.

As the ongoing platform charge is 0.3%pa with Cavendish vs 0.45%pa at HL, and more importantly there are no exit charges with Cavendish but lots of exit charges with HL, then Cavendish is a clear winner out of these two.

If you are not happy with Cavendish then you can always transfer away later at no charge (as opposed to HL where you are trapped in by the exit charges).

There are other platforms of course which can work out cheaper for larger investment amounts.

If you want to use individual shares or ETFs as opposed to funds then that is where another SIPP than Cavendish will be needed.

crystal_pixie_2

Snowman - thanks for your thoughts.

I have been on the fidelity website and it does look very straightforward.

As a SIPPS newbie I am looking at ways of "dipping my toe" with a small pot that doesn't seem to be doing all that well.

I have £12k in this pot and looking to add to it as well - probably £150 pm as a start.

SnowMan

crystal_pixie wrote: »

Snowman - thanks for your thoughts.

I have been on the fidelity website and it does look very straightforward.

As a SIPPS newbie I am looking at ways of "dipping my toe" with a small pot that doesn't seem to be doing all that well.

I have £12k in this pot and looking to add to it as well - probably £150 pm as a start.

At that level you are looking at a Cavendish custody charge (including platform charge) of currently about £40pa (12,000 x 0.003). So marginally cheaper than HL, but the more important advantage of Cavendish is the lack of exit charges.

Of course you will be aware of the need to distinguish between a) the platform to use for your SIPP and b) the underlying investments that you hold within that SIPP.

Your comment about 'not doing very well' I'm guessing is more relating to b).

There is a lot of information on monevator about choosing a good passive selection of investments to go within your SIPP (and lots of useful info about understanding risk and return) have a look at

http://monevator.com/category/investing/passive-investing-investing/

Retyre

On the Cavendish site for this new pension product their model portfolios list "Inc" rather than "Acc" funds. Thought the general wisdom was "Acc" for pre and "Inc" for post retirement?