Aviva Life Distribution AL

fwor

I'm reviewing the investments held by an elderly relative, with the aim of doing a sanity check to make sure nothing is completely inappropriate.

The relative is in her early 90's, in a nursing home, bed-bound and requiring full-time carer attention, and I hold LPOA for her.

I've rearranged her cash savings to put them into a fixed-term savings bond ladder so that the next 5 years worth of nursing home fees are covered.

However, she also has an Aviva Life investment policy of just over £100k, which has been in place for many years, in which the underlying fund is Aviva Life Distribution AL (Citicode QQ04). This investment will start to be drawn on in 6 years time when the cash reserves run out.

What I'd be grateful for are opinions on whether this fund is appropriate, given her current circumstances, as the fund must have been set up originally 20 years ago by her husband (now deceased). My specific concern is that the fund is quite strongly UK-centred, and that perhaps the fees are high compared with what's available now. As above - opinions would be appreciated.

dunstonh

My specific concern is that the fund is quite strongly UK-centred, and that perhaps the fees are high compared with what's available now. As above - opinions would be appreciated.

There is a good chance the charges are lower than what you get now or broadly similar. Many of these plans are on 1% flat or thereabouts all in.

My specific concern is that the fund is quite strongly UK-centred

It would be given the objective and risk profile.

When it comes to benefits, do remember that this investment bond is not included in means tests. This can make a big difference when it comes to qualification. You often see people with hundreds of thousands in investment bonds but getting credit.

fwor

dunstonh wrote: »

There is a good chance the charges are lower than what you get now or broadly similar. Many of these plans are on 1% flat or thereabouts all in.



It would be given the objective and risk profile.

When it comes to benefits, do remember that this investment bond is not included in means tests. This can make a big difference when it comes to qualification. You often see people with hundreds of thousands in investment bonds but getting credit.

Thanks - yes, the charge seems to be 1%.

Good point about the benefits, but as far as I'm aware she is not getting any means-tested benefits - all she receives is Attendance Allowance, plus a small contribution to the nursing home fees (which IIRC is called FNC allowance).

I think I'll just leave it alone then. The policy does permit a choice of around 20 other funds, but if I stick with what they define as "Medium Volatility", the only alternative with obviously greater ex-UK content is Aviva Life Global Distribution AL and that seems to be almost exactly the same - the extra global content amounts to something like 1-2%, so not really worth changing, I would have thought.