New Ireland i Funds v Zurich Prisma

Discussion in 'Pensions' started by Daddy, Feb 19, 2017.

  1. Daddy

    Daddy Frequent Poster

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    711
    Anyone any thoughts on which option might be best to take for investment of AMRF and ARF
    approx 63.5k in both. 2% broker charge to set up applies.

    New Ire iFunds3 fmc 1.25% allocation rate 105%
    Zur Prisma3 fmc 1.00% allocation rate 104%

    New Ire iFunds3 fmc 1.00% allocation rate 103%
    Zurich Prisma3 fmc 0.75% allocation rate 103%

    Broker says not much between them in terms of performance so just wondering myself as I think they are both relatively new products but on doing a search I think Zurich have pretty much outperformrd New Ireland for any time period comparison over the last 20 years on pension managed funds.
     
  2. jpd

    jpd Frequent Poster

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    and as we all know, past performance is no guide to future performance
     
  3. Daddy

    Daddy Frequent Poster

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    711
    Yes I know that saying very well.
     
  4. Conan

    Conan Frequent Poster

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    On the basis that it is impossible to predict future returns, I would look at the fmc. Assuming the risk profile of the two funds are similar, then the lowest fmc is best. So if both offer 103% allocation then the Zurich fmc will cost 0.25% less per annum.
    If you compare the first two funds, the extra allocation of 1% (105% v 104%) will be absorbed after 4 years by the 0.25% higher fmc. An AMRF is a long term investment and unless you switch managers every 4 years, the lower fmc will be significant over time.
     
    SBarrett likes this.
  5. SBarrett

    SBarrett Frequent Poster

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    Agree 100% with Conan. You could have these funds for 20 years +. The extra 1% up front will be dwarfed in the amount you will save by a lower AMC over that long a period.

    Steven
    www.bluewaterfp.ie
     
  6. Daddy

    Daddy Frequent Poster

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    Thanks Conon and Steven for explaining that.
     
  7. PFS7979

    PFS7979 Registered User

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    30
    aside from the charging structure, check out the underlying fund managers. I funds offers a multi - asset manager approach that should decrease risk/volatility.