Aviva Mulit-Asset III 2 S&SISA

SMcGill

Hello everyone 
My IFA has suggested this as part of my retirement plan. It’s actively managed and the costs are 0.58% admin and 0.25% service. 

I have a middle of the road risk appetite (5 by Aviva criteria) and expect to be able to leave this untouched for 7-8 years. I don’t expect the community here to suggest a better product given how little info I’ve provided (although suggestions are welcome!) but I did want to see if anyone had knowledge of this product or Aviva which might make me think twice before going with it?

dunstonh

My IFA has suggested this as part of my retirement plan. It’s actively managed and the costs are 0.58% admin and 0.25% service. 

That is a strange choice for an IFA recommendation.  Are you sure its an IFA?   Its the sort of fund you see being used on robo-advice services rather than full advice services.  The fact you mention Aviva's risk scale makes it look more likely its not an IFA full service recommendation but robo-advice (some IFAs use robo-advice options for smaller investors).

Nothing wrong with it. However, its performance is lower than comparable funds of the same risk level.  You wouldn't expect to see it being used outside of robo-advice.

SMcGill

Hello Dunstonh and thanks for your comments. The advisor is an IFA but perhaps as an investor with £50,000 I might still be considered a smaller investor? Either way I can’t say I like the idea of a recommendation based on an algorithm. I was simply keen to explore providers other than the obvious Vanguard Lifestrategy. I definitely need a do-it-for-me product, and if you have any suggestions I could investigate I’d much appreciate it. Either way, your comments have been helpful thank you.

dunstonh

 The advisor is an IFA but perhaps as an investor with £50,000 I might still be considered a smaller investor?

With many IFAs that would be at their lower end or even a complete refusal to offer services.     The cost of doing business under full advice means it is not viable for smaller investors for many firms.   So, robo-advice is available with many which is a guided service.   These can usually be identified by the fact the provider (of the robo service) uses their own risk scale and you end up in their product and their fund.   For many IFAs it is almost a complete handover to the robo process.    Some of the robo services allow white labelling of the service (allows the advice firm to put their name/logo in the corner).

Either way I can’t say I like the idea of a recommendation based on an algorithm.

It should only be the risk profiling that will be based on an algorithm.   The actual investment fund is based on actuarial opinions, asset data history and the risk level.

 I was simply keen to explore providers other than the obvious Vanguard Lifestrategy.

It is basically Aviva's version of that.

I definitely need a do-it-for-me product, and if you have any suggestions I could investigate I’d much appreciate it. Either way, your comments have been helpful thank you.

Have a word with the IFA and ask them why they used that.   To be honest, if we were doing a case for £50k, it would end up in something like HSBC GS on a cheap platform.    Maybe ask the IFA why they have recommended a fund costing 0.58% when there are better alternatives costing almost a third of that  (which is why I think the robo-advice service was used as the increased fund charge covers the cost of supplying the robo-advice service).

Albermarle

https://monevator.com/passive-fund-of-funds-the-rivals/
a few similar alternatives

SMcGill

Thank you both.