Pension Fund Choices - Waverton and Quilter

Groover24

I have yet to go back to the IFA regarding the choices suggested, but I did note in a message from one that they would be looking to invest my money into an MPS. What would be a reason for this? Direction from above as @dunstonh suggests?

I would be interested in opinions

dunstonh

I have yet to go back to the IFA regarding the choices suggested, but I did note in a message from one that they would be looking to invest my money into an MPS. What would be a reason for this? Direction from above as @dunstonh suggests?

Low cost MPS are very good value.  High cost MPS are not.   Both the Quilter and the Waverton are MPS but at the higher cost end.  

Its not the facts its an MPS that matters.  Its the cost of the MPS that does.

Groover24

dunstonh said

Low cost MPS are very good value.  High cost MPS are not.   Both the Quilter and the Waverton are MPS but at the higher cost end.  

I am told the Waverton fee is 0.75% to 0.77% - what is an expected cost for low or high MPS?

dunstonh

Groover24 said:

dunstonh said

Low cost MPS are very good value.  High cost MPS are not.   Both the Quilter and the Waverton are MPS but at the higher cost end.  

I am told the Waverton fee is 0.75% to 0.77% - what is an expected cost for low or high MPS?

low cost DFMs tend to be in 0.1x%-0.3x% range.

Groover24

I should point out the cost of the Waverton scheme  was 0.18% platform plus 0.59% for Waverton

dunstonh

Groover24 said:

I should point out the cost of the Waverton scheme  was 0.18% platform plus 0.59% for Waverton

Yes, some MPS run their own platform.  That helps tie you in to their own eco-system to make it harder for you to leave.  it also makes it harder for the adviser to leave from a logistics point of view.  e.g. if the adviser feels a different MPS is now the better option, with a whole of market platform, they can just move you over without having to change platform.    But with an in-house platform, you would have to move platform and MPS.  That is a significant increase in time and administration.   The adviser effectively becomes tied to a platform and MPS.

So, you can have a whole of market platform starting at 0.15% (fund based discounts can lower it for larger values, and include family linking).    DFM at 0.09% and portfolio at 0.08% = 0.32%.     Another similar MPS also can have the same platform charge and portfolio charge but has a £240 p.a. fixed fee for the DFM.  That is better for larger values but not for smaller.

Waverton's is not massively expensive as there are worse.   Some get you over 1% before you add the adviser charge.   But the in-house platform doesn't sound attractive.

Groover24

dunstonh said:

Groover24 said:

I should point out the cost of the Waverton scheme  was 0.18% platform plus 0.59% for Waverton

Yes, some MPS run their own platform.  That helps tie you in to their own eco-system to make it harder for you to leave.  it also makes it harder for the adviser to leave from a logistics point of view.  e.g. if the adviser feels a different MPS is now the better option, with a whole of market platform, they can just move you over without having to change platform.    But with an in-house platform, you would have to move platform and MPS.  That is a significant increase in time and administration.   The adviser effectively becomes tied to a platform and MPS.

So, you can have a whole of market platform starting at 0.15% (fund based discounts can lower it for larger values, and include family linking).    DFM at 0.09% and portfolio at 0.08% = 0.32%.     Another similar MPS also can have the same platform charge and portfolio charge but has a £240 p.a. fixed fee for the DFM.  That is better for larger values but not for smaller.

Waverton's is not massively expensive as there are worse.   Some get you over 1% before you add the adviser charge.   But the in-house platform doesn't sound attractive.

This does look very much like the SJP way of doing things!

I Have looked at some of the information sent and noticed the FE Crowns - I am no expert but these do not look particularly good