Multiple DC pensions and review/consolidation

noclaf

@dunstonh - The equivalent HSBC GS funds do seem to be better performers than VLS albeit at specific periods in time and are cheaper however my challenge is finding a platform where the platform fees for OEIC funds for an overall valuation of circa £25k makes sense from a cost perspective....and that's why I am considering just going with Vanguard for now as I don't think there is a more competitive platform.....once the pot goes above £60k then it might make sense to consider moving it....I could be wrong of course!

noclaf

AlanP_2 said:

Costs are important I know but, to me at least, making the "right" investment choice is more important.

If I thought the HSBC option would be a better going forwards than VLS then that is what I would want to use, I would then start to consider platform costs for where to hold it.

Starting from "what is the cheapest platform for what I don't really want to use" seems back to front.

I somewhat agree however my thinking here is that whether we pay a higher platform fee to invest in HSBC GS with slightly better performance (not guaranteed) or a lower platform fee to use Vanguard VLS or FTSE Global All CAP....I can't control the performance but I can control the fees...and on £25k is it really worth getting too hung up with choosing HSBC GS....you could argue it the other way too but for example paying 0.45% to use HL when my wife nor I will make any meaningful use of the platforms bells and whistles seems pointless.

Pat38493

AlanP_2 said:

Costs are important I know but, to me at least, making the "right" investment choice is more important.

If I thought the HSBC option would be a better going forwards than VLS then that is what I would want to use, I would then start to consider platform costs for where to hold it.

Starting from "what is the cheapest platform for what I don't really want to use" seems back to front.

The HSBC global funds seem to have performed better than the Vanguard corresponding fund and the VLS fund in recent years, but as DunstonH says, this is quite a short time, and actually in the last week (even shorter time!) the Vanguard global tracker has gone up a bit whilst HSBC went down so I guess it's the exact mix of investments.  I guess the VLS fund is UK biased, so that's then a case of whether you think the UK will do better than everywhere else.

Albermarle

noclaf said:

AlanP_2 said:

Costs are important I know but, to me at least, making the "right" investment choice is more important.

If I thought the HSBC option would be a better going forwards than VLS then that is what I would want to use, I would then start to consider platform costs for where to hold it.

Starting from "what is the cheapest platform for what I don't really want to use" seems back to front.

I somewhat agree however my thinking here is that whether we pay a higher platform fee to invest in HSBC GS with slightly better performance (not guaranteed) or a lower platform fee to use Vanguard VLS or FTSE Global All CAP....I can't control the performance but I can control the fees...and on £25k is it really worth getting too hung up with choosing HSBC GS....you could argue it the other way too but for example paying 0.45% to use HL when my wife nor I will make any meaningful use of the platforms bells and whistles seems pointless.

It has been mentioned already that HSBC funds are cheaper. For example.

HSBC global strategy Dynamic - 0.18% + A J Bell  platform fee 0.25% = 0.43%
Vanguard LS 80 on Vanguard platform = 0.37%

noclaf

Albermarle said:

noclaf said:

AlanP_2 said:

Costs are important I know but, to me at least, making the "right" investment choice is more important.

If I thought the HSBC option would be a better going forwards than VLS then that is what I would want to use, I would then start to consider platform costs for where to hold it.

Starting from "what is the cheapest platform for what I don't really want to use" seems back to front.

I somewhat agree however my thinking here is that whether we pay a higher platform fee to invest in HSBC GS with slightly better performance (not guaranteed) or a lower platform fee to use Vanguard VLS or FTSE Global All CAP....I can't control the performance but I can control the fees...and on £25k is it really worth getting too hung up with choosing HSBC GS....you could argue it the other way too but for example paying 0.45% to use HL when my wife nor I will make any meaningful use of the platforms bells and whistles seems pointless.

It has been mentioned already that HSBC funds are cheaper. For example.

HSBC global strategy Dynamic - 0.18% + A J Bell  platform fee 0.25% = 0.43%
Vanguard LS 80 on Vanguard platform = 0.37%

Agreed but fund costs are one element of the overall costs....though looking at your example it's a small/negligable cost difference and AJBELL is whole of market....so will certainly consider that platform/fund combo.

Pat38493

Whole of market is only important if you actually need access to the whole of the market.

I might have this wrong, but if you intend to invest in only funds and/or ETFs, I think there are providers which offer pretty much all of them at a lower cost than a "whole of market" SIPP.  For example if you never intend to purchase individual shares, you don't need a platform that allows that if it's going to cost more than another one that doesn't.

Also there are thousands of funds out there, but I suspect that many of them are very similar and you will not be able to know in advance which one will be best, so it may not be worth extra charges to have access to every single one of them.