Schroders Personal Wealth?

nologo

  Any thoughts/experience of this company ...my work friend has recently come into a modest inheritance,& has deposited with Lloyds bank ,they have suggested the above company should contact him to help him make the best of his good fortune,  We have visited the website and read the reviews but as part of looking after my work friend( Due diligence) I said I would ask on here.

thanks nologo

dunstonh

platform charge is 0.20% - It's not really a platform if you use the definition that you can buy from the whole of market with a platform.  However, some providers are using the name "platform" for their in house product.  So, its either a platform charge or product charge depending on your point of view.   At 0.20% its only marginally cheaper than whole of market platforms.

They use discretionary Investment Management which is 0.35%.  That is the ballpark for DFMs.  However, they are still charging VAT on this fee at 20%.  Most other DFMs have stopped charging VAT following an HMRC ruling)

The fund charges are 0.55%.

The ongoing adviser charge is 0.65% up to £1m.    (the typical IFA charge is 0.50% apart from on low values where you see 0.75%-1.0% as being more common).

It is your typical bank offering.  Not very cheap and heavily restricted (ie to Schroder DFM).  May be suitable for someone that is completely clueless and only looking at very low values.   However, the costs are in the ballpark of IFAs with their whole of market offering.  So, you would need to ask what a restricted FA/salesforce offering gives that you cannot get via an IFA who is not restricted.

My understanding is that this is Lloyds attempt to compete with SJP.  It is cheaper than them. 

nologo

Thanks for your reply, thats  interesting,   so he may do better with an IFA

nologo

dunstonh

nologo said:

Thanks for your reply, thats  interesting,   so he may do better with an IFA

nologo

Depends on what he is after.  The choice is usually either to DIY or use an IFA.  Never to use an FA/salesrep offering a restricted service.   However, for small amounts, these robo-providers can be effective.  For larger amounts, less so.