Passive investing

dunstonh

Deleted_User said:

Although our in-house portfolios have outperformed both VLS and HSBC GS after charges.   So, which person is getting better value.  The one that had lower charges but a lower return or the one that 

Meaningless comments like this, without any reference to a meaningful time period or risk would worry me. As indeed any advisor touting outperformance.  

You would never be satisfied though because of your bias against adviser portfolios.

2nd_time_buyer

dunstonh said:

... but do you ever advise to self invest in a "multi-asset fund like VLS or HSBC GSV" with no ongoing IFA charges?.

Frequently.  Indeed, three are on my desk at the moment to complete on that basis.    I would put ours around 50/50.

That is heartening to hear and I stand corrected.

My own experience was that I struggled to find anyone who would do a financial review for a one-off fee without doing the hard-sell on ongoing advice.

[Deleted User]

dunstonh said:

Deleted_User said:

Although our in-house portfolios have outperformed both VLS and HSBC GS after charges.   So, which person is getting better value.  The one that had lower charges but a lower return or the one that 

Meaningless comments like this, without any reference to a meaningful time period or risk would worry me. As indeed any advisor touting outperformance.  

You would never be satisfied though because of your bias against adviser portfolios.

There are events when taking “fee for service” advice makes a lot of sense.  Important to pick a good adviser though. 

Prism

Thrugelmir said:

Deleted_User said:

Although our in-house portfolios have outperformed both VLS and HSBC GS after charges.   So, which person is getting better value.  The one that had lower charges but a lower return or the one that 

Meaningless comments like this, without any reference to a meaningful time period or risk would worry me. As indeed any advisor touting outperformance.  

Not as if they are high benchmarks to beat performance wise. 

Ah, but you know what you are doing, as I would hope would a decent IFA. The thing is that it seems that most people do not and would in fact be better in a multi asset.

2nd_time_buyer

Deleted_User said:

dunstonh said:

Deleted_User said:

Although our in-house portfolios have outperformed both VLS and HSBC GS after charges.   So, which person is getting better value.  The one that had lower charges but a lower return or the one that 

Meaningless comments like this, without any reference to a meaningful time period or risk would worry me. As indeed any advisor touting outperformance.  

You would never be satisfied though because of your bias against adviser portfolios.

There are events when taking “fee for service” advice makes a lot of sense.  Important to pick a good adviser though. 

I also don't doubt the need for financial advice...

But I do think ongoing charges compromise the independent element and sully the industry.

dunstonh

2nd_time_buyer said:

dunstonh said:

... but do you ever advise to self invest in a "multi-asset fund like VLS or HSBC GSV" with no ongoing IFA charges?.

Frequently.  Indeed, three are on my desk at the moment to complete on that basis.    I would put ours around 50/50.

That is heartening to hear and I stand corrected.

My own experience was that I struggled to find anyone who would do a financial review for a one-off fee without doing the hard-sell on ongoing advice.

Wealth management firms business model is assets under management.  General practitioner firms do all things.    

[Deleted User]

2nd_time_buyer said:

Deleted_User said:

dunstonh said:

Deleted_User said:

Although our in-house portfolios have outperformed both VLS and HSBC GS after charges.   So, which person is getting better value.  The one that had lower charges but a lower return or the one that 

Meaningless comments like this, without any reference to a meaningful time period or risk would worry me. As indeed any advisor touting outperformance.  

You would never be satisfied though because of your bias against adviser portfolios.

There are events when taking “fee for service” advice makes a lot of sense.  Important to pick a good adviser though. 

But I do think ongoing charges compromise the independent element and sully the industry.

The industry is doing what people want and pay for.  Given the level of information and investment vehicles available today, in most cases there is no need for ongoing fees/advice.  Its someone else’s job to pick investments.  Advisors are just another layer. Still, many want someone to hold their hands. We’ll see if it changes. Suspect it will. 

Prism

It will be interesting to see how many in the UK sign up for Vanguard's financial planning service at 0.5%. It seems expensive for the limited scope it offers and will it in fact be any better than simply using their VLS range.