APT transferring my ARF to Irish Life

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Feemar5

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My ARF fund which was managed by Allied Pension Trust is being transferred by APT to Irish Life and today I have received a letter stating that the Fund Name is Multi Assset Portfolio 4 Series P. The yearly charge is 0.90% and is being deducted daily. I would appreciate any advice about this as I am not very familiar with investments. APT had a site where I could check the value of my fund.
 
My wife is in a similar position on her BOB with APT withdrawing, but being moved to Irish Life Multi Asset Portfolio 5 with same 0.9% AMC unless we instruct otherwise. I'm thinking I can probably do better than 0.9% by going down an execution-only route if I can find a good discount broker to do it. But it's lower than she was being charged with APT so it might not be worth the hassle.

Irish Life will have their site where you can log on and see your investments, make switches etc. They have a fund centre where you can look at their full range if you wanted to pick something different
 
I'm not really up to speed on why the change is happening but APT are/were pension consultants and pension administrators, not fund mangers. It's more likely that the money was managed by Irish Life all the time anyway.

You're being moved to a product with a similar risk profile to what you had and you're not receiving any advice? So it's like execution only but you're not making the decision?

Highly unlikely that AMC is divided by 365 and charged on your account every day.

Are there early encashment/transfer charges on the 'new' products? Will you be locked in for 5 years?

Shannb1 said:
But it's lower than she was being charged with APT so it might not be worth the hassle
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Since when is trying to save more money hassle.
 
Yeah you're right the funds themselves are with Irish Life (Assurance) already so it's the advice services that would move to Irish Life (Financial Services Ltd). The APT PRB now would become an Irish Life PRB. Funny enough they have suggested a different investment mix of IL funds than we have on the old PRB, not sure why. Obviously if we wanted to discuss the new investment mix with Irish Life and change this then that wouldn't be an issue.

The options that they have outlined are 1) transfer the plan to Irish Life Financial services, to their PRB or 2) go to another broker.
No mention of encasement charges that I can see. Seems like the do nothing option would see the funds move to the new product with Irish Life Assurance anyway but with no advisor. Not clear to me what charges would be then, I wouldn't expect to be paying 0.9% for no advice so I might see if this is possible.

GSheehy said:
Since when is trying to save more money hassle.
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It's a tradeoff between time and money isn't it? I don't mind the research part but to be honest the form filling isn't my cup of tea. I'll get the wife to do it!
 
Thanks for all the replies - re the charges the letter I received said “ the yearly fund charge is paid to the investment managers to look after your fund. This is deducted daily and will be reflected in the price of the fund.”
 
Got notice from Irish Life that online is now set up - I checked and my investment is down 3.5%. I phoned Irish Life as I didn't know if there was charges deducted but was told the full transfer went in but that particular fund has not been doing well for the past month - I was offered two choices
1. Leave it for a month or so and see how it goes or
1, Speak to a financial advisor.

II am confused !!!
 
I've never been impressed with Irish Life Funds. And annual charge of 0.9% is on the high side.
I would look at Royal London.
Or talk to GSheehy. Quite certain you can get a lower AMC with better funds if you do a little leg work.
 
AJAM said:
I've never been impressed with Irish Life Funds
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Why not stick with index trackers (especially since no active manager can consistently choose winners) and then the issue becomes a simpler one of index tracking accuracy, and possibly moot?
 
ClubMan said:
Why not stick with index trackers (especially since no active manager can consistently choose winners) and then the issue becomes a simpler one of index tracking accuracy, and possibly moot?
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From reading some older threads, I believe Irish Life's track record of tracking accurately is not great.
 
ClubMan said:
I don't know. Has something been posted about this recently?
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I read something about it in a post a couple of weeks ago (think it might have been a link to an older thread) however of the life of me can't remember which one it was). I think the comment was by @AJAM however could be wrong.
 
Yes
I asked Irish Life in 2021 the following
"We have noticed that the Irish Life funds are consistently underperforming their benchmarks. For example the Indexed World Equity Fund is consistently trailing it’s benchmark by more than one percent. How can this be possible on an index fund that has a fee of 0.65%?"

They responded with this

“The benchmark is actually the index itself the difference is management fee , and there may be a difference due to tracking difference between the actual Index funds and the indices itself. we are required to show the benchmark as the actual index return v the net return on the fund. This is normal for index funds. “

So I guess please ignore the missing 0.4% compounding annually.
 
Sarenco said:
Here’s the net return (EUR) for the MSCI World index for the last three years compared to the self-declared returns of the Irish Life World index tracker with an AMC of 0.75% -

Year. MSCI World. Irish Life. Difference.
2021. 31.07%. 28.81%. 2.26%
2020. 6.33%. 5.55% 0.78%
2019. 30.02%. 28.66%. 1.36%
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Thanks @AJAM.

My wife and I have BOB's with Irish Life, in their World Index fund. Current worth circa €400K on a TER 0.26%.

Feel like I should move these however the very low cost is stopping me currently.
 
Don't think you will beat that fee TRS.
Also I had a quick look and it seems the tracking error has improved significantly over the last 3 years.
 
AJAM said:
Don't think you will beat that fee TRS.
Also I had a quick look and it seems the tracking error has improved significantly over the last 3 years.
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I know and is the main reason why I have not looked seriously at switching them.

I track the performance against 2 other world index funds have in other pension products and agree, there was big discrepancy between Mar-Jul 2022, however since then the performance has been as good as the other two funds.
 
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