On going FA charge (sorry)

Rodders57

I have a small pot of £360k with Prudential that I cashed in 2022. The Pru appointed an FA and he set up a Prufund RM3 and Prufund Planet RM3. It just sits there and I have an annual review that takes about 30 minutes and its the only time he interacts with me. The Pru pay him monthly out of my fund. He has dropped his on going charge from 0.95 to 0.75%. Now I`m not complaining about the charge it is what it is and its probably an industry normal fee. However if the pot just sits in a fund and nothing changes when he reviews it and I don't see the point of paying for it. I can stop his advisor fees but would it be wise to do so ? its just I cant see the value of it. I dont think the fund is performing that well and his £2.7k a year compounded would help give it a lift. However I might be missing something hence this post. Any advise would be grateful. Thanks 

eskbanker

Rodders57 said:

I dont think the fund is performing that well

Relative to what?  You presumably discussed with him at the start what your objectives are, and your risk tolerance, etc, and ought to be reviewing its suitability for those each year, in case either side of the comparison has changed, but if they haven't then there wouldn't be any action needed, although he should be able to answer your concern about performance, without waiting for an annual review to do so.

Rodders57

Relative to what?eskbanker

Relative to the Funds ERG`s and my expectations I suppose

eskbanker

Rodders57 said:

Relative to what?eskbanker

Relative to the Funds ERG`s and my expectations I suppose

I'm not familiar with ERGs but the point was really that the FA is the one who should be able to advise on what would meet your expectations, in the (important) context of your objectives, risk tolerance, etc, although a tied FA will inevitably be more constrained than an IFA.

Eyeful

 I think they actually mean ESG & not ERG, though I may be wrong.

eskbanker

I think I have solved the mystery!

We set Expected Growth Rates (EGRs); these are yearly rates your customer’s investment will normally grow at.

https://www.mandg.com/pru/adviser/en-gb/funds/prufund-range/egr-and-upa

Eyeful

1. To some persons, would not considered £360k a "small pot".

2. As eskbanker has pointed out these funds where chosen as suitable for you.
If your objectives & risk tolerance have not changed, why should the funds be changed

3. I expect the Pru appointed an FA was a "restricted advisor".
They may only have been able to offer you options from the PRU range of funds.

4. One option is to find a local IFA, who would be able to advise you on suitable funds but they would be looking at the whole of the market and not just PRU funds.
You can also see how their charges stack up against what you are paying now.