ETFs in AVC subject to deemed disposal?

[BagzOfNoMoney]

I'm not sure if this has been addressed earlier, but a few searches on the Web (and on this forum) didn't come up with a definitive answer. I'm a public sector employee, and pay into an AVC. I'm also starting out with investing, and (like many others) was disappointed with the 8-year deemed disposal rule. My queries are:

1. Can I ask my AVC to invest in ETFs like VWCE, MSCi, etc?
2. Since the AVC money is available to me only at retirement, are the ETFs affected by the deemed disposal rule?
3. If the answer to (1) is yes, and the answer to (2) is No, then (from a long-term perspective), isn't it a good way to get the benefits of an accumulating ETF, without having to keep track of, and pay the deemed disposal tax?

 

[Gordon Gekko]

There is no tax or deemed disposal under the bonnet of a pension structure such as an AVC PRSA.

 

[ClubMan]

Are there (m?)any Irish AVC/PRSA/Personal Pension Plan providers that give access to ETFs or is it something that would only be possible under something like a self administered scheme?

 

[Gordon Gekko]

Are there (m?)any Irish AVC/PRSA/Personal Pension Plan providers that give access to ETFs or is it something that would only be possible under something like a self administered scheme?

I think so.

e.g. Davy, Aviva, Zurich

 

[Steven Barrett]

Standard Life have access to a number of Vanguard passive funds.

 

[ClubMan]

I think so.

e.g. Davy, Aviva, Zurich

Thanks.

Standard Life have access to a number of Vanguard passive funds.

Are they index tracking funds or ETFs?

 

[Steven Barrett]

Index tracking funds

Insurance companies won't offer ETFs except in self directed pensions if they offer that facility. For most people, an index tracking fund and an ETF are the same thing (I know they aren't).

 

[ClubMan]

Thanks. So the answer to the original poster's first question is probably "no" unless they're using a self directed plan?

 

[Dave Vanian]

Thanks. So the answer to the original poster's first question is probably "no" unless they're using a self directed plan?

Aviva and Standard Life offer self-directed functionality within their normal AVC PRSA products. So you can instruct either one to move some or all of your fund into the self-directed area which links to a trading platform and away you go. You can choose to keep some of your money in Aviva or Standard Life's choice of funds and some self-directed, e.g. 50% Aviva Managed Fund and 50% self-directed. Or 50% Vanguard Global Stock Index (a fund choice from Standard Life) and 50% self-directed etc. Or you can go 100% self-directed if you like. If the plan is to go 100% self-directed, it can be cheaper to look at one of the bespoke outfits like ITC etc.

 

[Steven Barrett]

Thanks. So the answer to the original poster's first question is probably "no" unless they're using a self directed plan?

That is correct.

But for your average investor a global equity index fund tracking the MSCI World Index will do the job and they won't insist on having it track it in an ETF as opposed to a fund. Most investors don't know that there is a difference between the two.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)

 

[Gordon Gekko]

Thanks. So the answer to the original poster's first question is probably "no" unless they're using a self directed plan?

I was referring to Self-Directed pensions via Davy, Aviva, Zurich, etc.

Your question was:

“Are there (m?)any Irish AVC/PRSA/Personal Pension Plan providers that give access to ETFs or is it something that would only be possible under something like a self administered scheme?”

All of the above give access to ETFs.

 

[ClubMan]

I was replying to @Steven Barrett's post.