Pension funds vs standard funds charges confusion

dellboy102

Hi All

I wanted to migrate from the default lifestyle fund that i'm enrolled in to a couple of other funds I'm interested in however i've noticed some funds have Aegon branded equivlents with higher charges.. for example I was interested in:
I Class Shares in Fundsmith Equity Fund Accumulation Shares (ISIN: GB00B41YBW71)

However theres also the choice of Aegon Fundsmith Equity (GB00BYZX3J10)

Annual management charge of the first is 0.90% vs 1.10% for Aegons version, I dont understand why I would choose the Aegon version unless i'm missing something in terms of other benefits?

dunstonh

Pension funds AMCs are the equivalent of the OCF on UT/OEICs. Do not compare them with the AMC on the OEIC. Fundsmith OCF is 0.95%. Not 0.90%.

I dont understand why I would choose the Aegon version unless i'm missing something in terms of other benefits?

It is an insured fund. Not a unit trust. It is also a mirror fund. So incurs an additional cost. Mirror funds are the old way of giving access to external fund houses via insured funds. You tend to see it on older contracts. Modern contracts just use the UT/OEIC version.

Many auto-enrolment schemes are kept basic on purpose and will use insured pensions as a preference.

dellboy102

Many thanks Dunston for the info, sounds like I should just go for the Fundsmith then rather then the Aegon mirrored fund