Legal and General SIPP

nrsql · 26 April 2018 at 11:24AM

Some time ago an IFA amalgamated a few of my pensions and moved them to L&G. I've just got online access to the account.

Don't have any reason to be concerned about it but just thought I'd check if it's appropriate.
It's never been re-balanced (but I'm not too concerned about that at the moment and I can use other investments to compensate) and I've had no contact from the IFA apart from when I asked him a question a couple of years ago and he mentioned he was monitoring the account.

It's a
Portfolio Plus Self Invested Personal Pension

I'm guessing that's a product from the old charging structure.

It has about £71k at the moment
It was split equally but now has

Global Equity 70:30 Index Fund (PMC) £14,911
Distribution Fund £13,348
Index-Linked Gilt Fund £14,993
Property Fund £13,712
UK Equity Index Fund (PMC) £14,306

The management charges appear to be £45 a month so about .75%. Maybe a little for what I'm getting but...
These are taken by selling from all 5 funds each month.
These are the only explicit charges but I don't know if there's anything else.

I'm not expecting to touch this for several years and it's not an important part of my plans.
Just thought I'd check if I should be moving this or doing something with it.

dunstonh · 26 April 2018 at 11:37AM

It's never been re-balanced (but I'm not too concerned about that at the moment and I can use other investments to compensate) and I've had no contact from the IFA apart from when I asked him a question a couple of years ago and he mentioned he was monitoring the account.

Are you paying for ongoing servicing?

Portfolio Plus Self Invested Personal Pension

Its a hybrid SIPP as it allowed L&G insured funds to be used. If only insured funds were used, then it was effectively a personal pension (even though its a SIPP).

the management charges appear to be £45 a month so about .75%.

0.75% was good for mid 2000s but now double what you can get for internal funds in 2018.

nrsql · 26 April 2018 at 11:44AM

Thanks

>> Are you paying for ongoing servicing?
Not explicitly - I'm guessing the IFA gets commission?

>> If only insured funds were used, then it was effectively a personal pension (even though its a SIPP)

That's what I thought.

>> 0.75% was good for mid 2000s but now double what you can get for internal funds in 2018.

Yep - but it's not outlandish. Do you think it's worth doing anything about that?
And would all the charges be explicit now? It doesn't look like there are any charges to sell to cover the monthly charge but it could be hidden somewhere - maybe in a spread?

dunstonh · 26 April 2018 at 12:37PM

Not explicitly - I'm guessing the IFA gets commission?

Only if you are using unit trusts with a commission paying share class. otherwise no.

yep - but it's not outlandish. Do you think it's worth doing anything about that?

its about £250 saving a year difference currently for similar funds in a more modern product.

And would all the charges be explicit now?

Most plans had gone explicit before 2013.

It doesn't look like there are any charges to sell to cover the monthly charge but it could be hidden somewhere - maybe in a spread?

Most insured pension funds retailed after 2001 were mono charged (AMC only).

nrsql · 26 April 2018 at 12:50PM

Thanks.
Doesn't sound like anythings urgent - might look at doing that when I'm next out of work.

Wonder how the IFA is getting paid then - he seems to think I'm getting ongoing servicing (even though he doesn't seem to be doing it).
I'm not planning to involve him again until I'm looking at drawing out and then I'll ask a few IFAs.

dunstonh · 26 April 2018 at 1:07PM

Wonder how the IFA is getting paid then - he seems to think I'm getting ongoing servicing (even though he doesn't seem to be doing it).

He probably isnt being paid.

Transactional clients still often refer to and go back to the same adviser and the adviser will still consider that person a client even if nothing pro-active is going on. One day, there may be something needing.

If you were paying for ongoing servicing you would see advsier charges declared.

nrsql · 26 April 2018 at 5:29PM

Odd.
He's missed something there.
If he'd made a bit more effort to keep in contact I'd probably have put fair bit more business his way.
I've probably got to restructure things soon as I'm advising an investment company and might need to be more arms length with my own trades.

Legal and General SIPP

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