Considering Moving my PRSA from zurich to Davy, looking for advice

J

jigsaw

Registered User
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Hey guys

I currently have a small PRSA with Zurich (€14k current value) but am considering moving it to Davy to give me the option to purchase ETF's, and avoid the dreaded deemed disposal tax.

The PRSA is following Zurichs Default Annuity Investment Strategy, which is 58.36% invested into the Performance Fund and 41.64% into the dynamic fund and I am now putting €600 per month into it

I want to invest in VWCE and would like to reap the benefits of the compound effect, which DD kills.

Currently my Zurich PRSA has 100% allocation with an AMC of 1%.

I see that for the Davy PRSA, there is a charge of 0.06 + €25 for foreign transactions, plus 0.75% Annual charge.

That's what I have been reading online, but when I download Davy's fee structure PDF, it says there is a Stamp Duty charge of 1%, which brings the total to 1.75%

I have attached screenshots of Davys fee schedule here:

[broken link removed] [broken link removed]

Am I reading this correct guys?

The total charge if I were to buy VWCE in a Davy pension wrapper is 1.75% + 0.06% + €25?

The Davy PDF also states
"Assuming a gross yield of 7% per annum, the impact of costs and charges is to reduce yield by 1.75% in the first year, and by 1.15% PA over a 5 year holding period"

What exactly does this mean? They take 1.75% in the first year, then 1.15% for 5 years? Then what happens in year 6?

If anyone here has the Davy PRSA, how do you find the user experience / interface of the Davy website for trading? Is it simple enough?

Im just looking for some feedback really from anyone who uses Davy for their PRSA, and for confirmation that the annual charge is 1.75% instead of 0.75%.

The main reason I am considering moving my PRSA to Davy is because I will be able to avoid deemed disposal tax and also VWCE is more diversified.

Or is it a terrible idea to try and self manage my pension and should i just leave it with Zurich to handle?

Thank you in advance guys
 
Hi there - I can't answer your questions unfortunately ............... but can I ask a question of my own ................ are you sure deemed disposal tax applies to a PRSA.

I assume by deemed disposal tax you mean the exit tax of 41% which applies every 8 years to life bonds and life regular savings contracts.

This exit tax doesn't apply to pension contracts like a PRSA
 
I am with davy direct/execution only client, the annual charge is .75%/2 every 6 months on the value of my account.
 
Last edited:
Hi,
I have a Davy Executive pension.
They do the standard PRSA as 0.75% and the executive as 0.90% . There is no allocation charge(so you can consider it 100%).
You can buy an ETF listed on the London stock exchange and pay no stamp Duty and no foreign transaction charge. So you basically just pay the amount the ETF is trading for.

From your first screen shot it is showing you the first yearly cost of investing €100,000 in Irish stocks.
1% Stamp Duty : €1,000 (One off)
.75% Davy Charge : €750 ( yearly fee assuming no growth)

If you only want an ETF, just stick to London based ETFs and no additional charges other than 0.75% and avoid all the messing around with transaction costs, custodian charges, etc.

Also I've amalgamated three pensions under Davy and it is straight forward enough
S
 
Savvy said:
Hi,
I have a Davy Executive pension.
They do the standard PRSA as 0.75% and the executive as 0.90% . There is no allocation charge(so you can consider it 100%).
You can buy an ETF listed on the London stock exchange and pay no stamp Duty and no foreign transaction charge. So you basically just pay the amount the ETF is trading for.

From your first screen shot it is showing you the first yearly cost of investing €100,000 in Irish stocks.
1% Stamp Duty : €1,000 (One off)
.75% Davy Charge : €750 ( yearly fee assuming no growth)

If you only want an ETF, just stick to London based ETFs and no additional charges other than 0.75% and avoid all the messing around with transaction costs, custodian charges, etc.

Also I've amalgamated three pensions under Davy and it is straight forward enough
S
Click to expand...

Thanks for this

I had decided on VWCE but I see that its not listed on the LSE.

Also Im thinking that buying from the LSE in £ would expose me to currency risk compared to buying VWCE in € from XET.

So Im thinking is it worth it to pay the €25 transaction free to Davy to buy VWCE, or to save the €25 and buy IWDA from the LSE in GBP?

Guess I have more research to do

Or maybe I should just leave my pension with Zurich.

Can you outline the other costs with Davy apart from the 0.75% and the €25 transaction fee?
 
The only risk I see is with the currency conversion fees and not the currency that the ETF is trading in. The price on XET vs LSE will just be based on the exchange rate between € and £ anyway. Any difference would be arbitraged out.

On transaction costs outside of Dublin/London you are just missing the .06% fee on each transaction.

That reminds me that it annoys me that we are charged the same for access to European Union markets as that for American. Surely the EU should be cheaper. I might just contact Davy about this tomorrow to understand why this is.
 
If you can get it on a euro exchange you will save foreign exchange commission.

Many funds are sold on multiple exchanges.

There are European exchanges they have access to too.
 

Leading Edge Advisor Programme | Independent Trustee Company

The Leading Edge Advisor Programme (LEAP) provides the professional advisor with an innovative and transparent pensions and investment platform solution.
www.leapplatform.ie www.leapplatform.ie

PRSA is 0.50%pa
Exec pensions 0.40%ps

On platform Euro share class UCITS funds are free to deal and institutional funds generally have lower charges than retail ETFs so we would generally avoid retail ETFs in pensions.

advice is charged separately rather than being bundled as is the case with insurance company products or Davy
 
Does anyone know if Davy will take a PRSA AVC moved over to it........its the AVC piece that has me doubting they do it.....given AVC links the PRSA to existing scheme generally a public service pension
 
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