Lowest charges for ARF

[Marc]

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[elacsaplau]

How about a specific example

Leap https://www.leapplatform.ie/ (ITC and Conexim) provide an integrated QFM and custody service for a flat 0.40%pa. There is a minimum charge of €300pa.

So Leap is an advisor only platform - i.e. these funds can only be accessed via a regulated financial advisor? So how much will they charge?

What I'm trying to establish the total cost of fund management - not part of the costs!

 

[Marc]

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[Gordon Gekko]

Hi Marc,

Who is the counterparty if I place my ARF via the LEAP platform?

Thanks,

Gordon

 

[Marc]

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[Gordon Gekko]

Counterparty is Pershing which has over $1.7 Trillion in custody assets.

Parent is BNY Mellon which is the custodian bank of Federal Reserve and has over $30 trillion in assets under custody.

Sounds promising.

So I have no ITC or Wealth Options credit risk?

 

[Marc]

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[Sarenco]

Let's say for example, that someone was influenced by some of the comments earlier on in this thread and decided to arrange an indexed fund from say Friends First.

On an ex-post basis over the last 4 years we can see the difference in realised returns between some Friends First funds and an equivalent UCITS Index Fund.

Nearly a percent a year less for the "same" index.

I find that very hard to believe. Can you show us your workings?

 

[Marc]

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[Sarenco]

Erm, yes...

You click on the attached file and take the smaller number away from the larger one

Yes but you haven't told us what contract you are using for the Friends First fund. What exactly are you comparing?

 

[Marc]

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[Sarenco]

Sorry but I thought you were comparing the performance of an institutional share class of a Vanguard index fund with the performance of a Friends First fund that tracks the same index.

The Friends First contract that was referenced above has an AMC of 0.4% - not 0.65%.

Also, we have to add platform costs of 0.90% to the institutional share class TER to make an apples-to-apples comparison.

 

[Marc]

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[elacsaplau]

In the global stock index example, are both funds tracking the same index?

 

[Marc]

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[elacsaplau]

So what are we saying exactly? That SSGA have tracked precisely the same index as Vanguard but over the four years in question, SSGA's index tracking has cost the investor 0.35% p.a.?

These seems incredibly high. Can you provide links the two funds so that I can understand the rationale for this please? I'd be very surprised if SSGA's tracking consistently lags Vanguard - certainly to such an extent.

 

[Marc]

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[elacsaplau]

The FE analysis looks at the State Street Index World Equity Fund which has a declared AMC of 0.65% and the State Street Emerging Market Equity fund which has a declared AMC of 0.85%

versus

Remember you aren't invested in the SSGA fund you are invested in a Friends First Mirror fund.

Well you could have made that clear a long time ago!

 

[Sarenco]

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[Steven Barrett]

Sounds promising.

So I have no ITC or Wealth Options credit risk?

You can also use Conexim as your QFM for your ARF and ALL your funds are held by Pershing. If you set it up through the LEAP product in conjunction with ITC, you will have your own ARF bank account with Bank of Ireland. Money can be transferred to Conexim (using Pershing as the custodian) for investment.


Steven
www.bluewaterfp.ie