(Aviva) Insured Pension Funds - value of an Insured fund V similar HSBC GS fund for example.

sjp999

Greetings all knowing folks,

Specifically Aviva Insured Funds Mixed Investment (20-60% Shares) S14 but my query is as much about the "Insured" part of the equation though thoughts on this particular fund would also be appreciated.

So, what's so special about an "Insured" fund - unable to Google any form of educational type resources (queue any amount of links showing me what I missed )

Background - This fund was advised as part of a DB transfer out a couple of years ago and constitutes a little over half of my total HL holding (pretty much 50/50 SIPP / SS ISA). I am currently getting out of HL now that I'm unlikely to accumulate much between now and drawdown. Looking for reduced costs, wondering if it's worth keeping this "Insured" fund and TX'ing my HL SIPP in to Aviva or heading off to e.g. Interactive Investor with my HL and my Aviva holdings. Current HL funds (SIPP and SS ISA) are the usual VLS & HSBC GS offerings, 40% & Balanced in the SIPP, 60% & Dynamic in the ISA.

Annoyingly Aviva don't calculate their charges on total holdings rather than the amount held separately in a SIPP and an SS ISA - if they did, I'd be a few % over their 0% charges threshold.

Full SP entitlement, annoyingly 1 year showing Not Full, the Scottish in me argues against paying the ~£320 but the OCD in me is screaming at me to get a perfect column showing Full Year top to bottom (ask me who won come April 2023).

If Aviva isn't the answer, I would probably plump for HSBC GS (with II - £240 a year is appealing) as they to look to have done a better job over the last few years than VLS.

Thanks in advance

dunstonh

So, what's so special about an "Insured" fund - unable to Google any form of educational type resources (queue any amount of links showing me what I missed  )

They are issued by insurance companies and have a higher level of due diligence carried out on them. 

Annoyingly Aviva don't calculate their charges on total holdings rather than the amount held separately in a SIPP and an SS ISA - if they did, I'd be a few % over their 0% charges threshold.

It depends on the Aviva charging model from the advice firm you used.   Aviva offer firms bespoke pricing models.  Plus, they offer discounts based on the amounts involved.  And can discount further on increments if they are significant.

If Aviva isn't the answer, I would probably plump for HSBC GS (with II - £240 a year is appealing) as they to look to have done a better job over the last few years than VLS.

Aviva's platform requires you to have an adviser.  

Albermarle

Although to you and me , Aviva ( and similar companies like Standard life ) are pensions providers , they are technically known as Insurers. If you have a typical Aviva personal or workplace pension , then there are only Aviva funds available to invest in.
In this case you are 100% insured against losses ( not investment losses but due to fraud, bankruptcy etc ) although as far as I know it has never happened.
If you say have a SIPP with HL with HSBC GS fund , you have max £85K cover for the platform and another £85K for the fund .
Again nothing has ever happened with a mainstream platform or fund .
If you have an insured fund with HL , then I am not sure exactly what the position is. On the other hand the chance of HL or HSBC having a problem like this is extremely small, so not really worth worrying about I guess.

sjp999

Thanks both
So, working on the assumption that nothing untoward goes on internally at HL / II / <whichever platform>, there's little benefit to an insured fund V e.g. HSBC GS held elsewhere?

I am an "Orphaned" advised client with Aviva, I will double check I'm fully on my own when it comes to non-adviser involved dealings (such as TX'ing out to II for example) - I know I'm able to invest more (some monies last tax year to cover monthly charges and this tax years £2880 have gone in without issue) without going through the adviser who handled the DB TX into Aviva.

Albermarle

So, working on the assumption that nothing untoward goes on internally at HL / II / <whichever platform>, there's little benefit to an insured fund V e.g. HSBC GS held elsewhere?

Correct , In fact I transferred an Aviva and a Scottish Widows pension to a SIPP and invested in various funds ;ETF's etc , to a total value over 3 times that £85K limit and I have not lost a wink of sleep over it .

Of course it was a mainstream SIPP provider and all the funds are from well known fund houses. Royal London, Vanguard , Fidelity etc