Cheapest unit linked fund for lump sum

L

lored

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Hi all,

does anyone know who operates the cheapest unit linked funds?

I know quinn are 1% per annum. Does any company do better than this?

Thanks,
Lored.
 
Most companies would be between 0.75% to 1% for a decent sized lump-sum.
 
South said:
Most companies would be between 0.75% to 1% for a decent sized lump-sum.
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Is that comparing like-with-like? QL charge 1% with no other charges or exit penalties. Can you get 0.75% to 1% from other companies on the same basis? Which companies?
 
No bid/offer spread, 100% allocation...the companies I am talking about would be Eagle Star, New Ireland, Friends First, Irish Life, Hibernian, Oppenheim Investment Managers, Bloxham (minimum fund pretty high for these last two).
 
You're not comparing like-for-like - none of these companies will offer <1% annual management charges unless there are early exit penalties and/or nil commission terms in which case the client will have to pay a fee.
 
No entry or exit penalites Dave.

There would be a set-up fee charged by the advisor for setting the policy up on a nil commission basis.
 
Which would obviously be far far cheaper than paying 1% to 1.5% to Quinn for a Managed Fund.

The question was about Management Fees, as I said we would usually get < 1% for our clients, about 0.5% for an indexed fund (which all Quinn Funds are).
 
What would the fee payable to an advisor be on a lump sum of €5,000? €10,000?

Bear in mind the OP hasn't mentioned whether they are looking for a regular payment or lump sum investment.
 
No, the OP asked what management fee would be payable on most funds.

So I answered the question.
 
South said:
No, the OP asked what management fee would be payable on most funds.
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No they didn't

lored said:
does anyone know who operates the cheapest unit linked funds?
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That could mean regular premium, lump sum, actively managed, index tracking etc. It's not exactly clear. But they use the word 'the' which is not the same as 'most'.

You answered the question using the word 'most'.

South said:
So I answered the question.
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Can you answer my question?

CCOVICH said:
What would the fee payable to an advisor be on a lump sum of €5,000? €10,000?
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I would like to compare the cost of investing €5,000/€10,000 in a Quinn 'tracker' vs. doing the same with another company via an execution only broker.
 
No one company can say they operate "the cheapest managed funds" so I gave examples of fund management charges, which obviously allows the OP to make an informed decision rather than me making a decision for the OP.

The charge for a lump-sum as small as €5,000 would be commensurate with the amount of work involved, probably about €100, so the saving on fund management charge could more than make up for the cost after about 2 years.

Similarly for a fund of €10,000 it would be commensurate with work, but would probably be devised such that the saving on fund management charge could outweigh the cost within two years.
 
South said:
The charge for a lump-sum as small as €5,000 would be commensurate with the amount of work involved, probably about €100, so the saving on fund management charge could more than make up for the cost after about 2 years.
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If we assume compound growth of 8% p.a. and a 0.75% management charge, and a €100 set up fee, €5,000 would be worth €6,975* after 5 years (before tax) with a provider other than Quinn, while it would be worth €6,987 with Quinn (assuming a 1% charge-not applicable to all funds).

*Would actually be €6,934 if we reduce the initial investment by the set up charge, as opposed to deducting it from the gross value at the end of year 5.

But, if you use €50,000 over a 10 year period, the gross values are €100,018 (Advisor) and €97,625 (Quinn).

Different answers depending on amount and timeframe I guess.
 
There are only four Quinn Funds available at 1% and one of these is Cash and one is Long Bond, so you are certainly not comparing like with like.
 
South said:
There are only four Quinn Funds available at 1% and one of these is Cash and one is Long Bond, so you are certainly not comparing like with like.
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Why not? The other 2 are an ISEQ and a Eurozone type tracker-I know that Irish Life offer essentially the same funds, and I'm sure others do as well.

Why don't you

(a) pick a fund in an alternative provider that is similar to one of Quinn's (e.g. Tech, China, etc.)
(b) pick a lump sum
(c) show projected earnings on both

I am just trying to illustrate with examples-feel free to do likewise.
 
Yes they do and, as I have already said, the fund charges for passive management would usually be around the 0.6% mark, so why don't you re-run your calculations on that.

Not that an 8% projected return is reasonable anyway!
It should be done on 6%.
 
The question was about Management Fees, as I said we would usually get < 1% for our clients, about 0.5% for an indexed fund (which all Quinn Funds are).
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I'm confused.

You say here that you work for a reinsurance company. So who are "our clients" that you mention above?

I've never seen 0.5% available to a retail investor for lump sum into a unit-linked fund. Are you sure about this? If so, you should post details as I suspect many AAM regulars would consider investing on these terms, especially for a fee of €100 for a €5,000 lump sum.
 
My family run an authorised advisor firm, thanks for checking up on me, I obviously have a fan :)

Yes, I'm positive (see above) and AAM users are free to PM if they want info I will pass on to the firm.
 
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