Access to a global index tracker through an AVC?

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hadrian

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There aren't many places one can get access to a passive global index through an AVC....I know (at least I think I know) there is currently one that suits my situation unless I want to have to pay very high charges for other routes

I heard one of the larger life/pension companies intends to start offering a passive index tracker along with their usual managed funds etc...

Is there any truth to the rumour/speculation? I'm about to make a decision on what to invest in and where but curious if there might be another option soon...with a potentially better ter based on how much I would be contributing. Anyone care to confirm and/or maybe offer up the identity of said life company.....I might put funds with them if I knew the product I'm interested in is coming down the tracks and a rough timeframe.
 
How much more (in terms of AMC) would one be willing to pay to access a global index tracker Vs an actively managed global equity fund?

0.25% pa ? More ? What's the general expectation on the level of outperformance on one Vs the other?
 
GSheehy said:
How much more (in terms of AMC) would one be willing to pay to access a global index tracker Vs an actively managed global equity fund?

0.25% pa ? More ? What's the general expectation on the level of outperformance on one Vs the other?
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Shouldn't the charges on a (passive) index tracker generally be lower than on an actively managed fund given that the latter presumably involves more hands on work by the fund manager?
 
ClubMan said:
Shouldn't the charges on a (passive) index tracker generally be lower than on an actively managed fund given that the latter presumably involves more hands on work by the fund manager?
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GSheehy said:
How much more (in terms of AMC)
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Not talking about the additional Other Ongoing Costs/CIVs or Portfolio Transaction Costs that all types of funds have at all. Talking about base cost to access the provider (as a starting point, before we get into the nitty-gritty of all costs) eg. pay a 1% AMC to access an index tracker V's (say) 0.75% to access an actively managed 100% equity fund. Clearly, the OP is putting a 'value' on access to the index tracker.
 
GSheehy said:
Not talking about the additional Other Ongoing Costs/CIVs or Portfolio Transaction Costs that all types of funds have at all. Talking about base cost to access the provider (as a starting point, before we get into the nitty-gritty of all costs) eg. pay a 1% AMC to access an index tracker V's (say) 0.75% to access an actively managed 100% equity fund. Clearly, the OP is putting a 'value' on access to the index tracker.
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But even ignoring transaction costs, surely an actively managed fund involves more work and consequently a higher AMC compared to a (passive) index tracker?
 
Higher OOCs/CIVs and PTCs (mainly PTCs), yes.

That's the risk/price you pay in the hope that active does better than passive.

If your PRSA is with SLAC you're paying them an AMC for it to be with them. Then you're paying the fund charges on top of that.
 
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GSheehy said:
If your PRSA is with SLAC
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What does SLAC stand for?


images

Stanford Linear Accelerator Center
 
GSheehy said:
Higher OOCs/CIVs and PTCs (mainly PTCs), yes.

That's the risk/price you pay in the hope that active does better than passive.

If your PRSA is with SLAC you're paying them an AMC for it to be with them. Then you're paying the fund charges on top of that.
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To be fair there are 6 different acronyms here that may be unfamiliar to a layperson.
 
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