LDFerguson
Registered User
- Messages
- 4,719
Brilliant 105% allocation and a 5% bid-offer spread...lovely stuff
Heavens no - NO bid/offer spread of course.
Heavens no - NO bid/offer spread of course.
I think every single post on this thread assumes that the ARF is being provided by an Insurance Company.
Not a single reference to the possibility of using a Qualifying Fund Manager, separate custodian and separate fund managers.
For many ARFs this is actually the best way to go but this option does not get much air time as the dominant distribution model in Ireland is the packaged insurance scheme.u
The real benefits of this approach are most significant for bigger schemes
Typically you would be looking at fees like this
Initial set up fee of around €1000
Annual fees as follows:
QFM 0.25%pa or €900pa minimum
Independent Custodian 0.05%pa
Fund management charges typically range from 0.15% to 0.5%pa depending on fund choice.
If you need the services of a professional adviser these should be paid for separately and not bundled together by an insurance company so that you end up having no idea what you are really paying.
No early surrender penalties, no smoke and mirrors.
If you are wondering why you need a QFM and an independent custodian ask anyone who had their money with Bernie Madoff or Custom House Capital.
Not a single reference to the possibility of using a Qualifying Fund Manager, separate custodian and separate fund managers.
For many ARFs this is actually the best way to go but this option does not get much air time as the dominant distribution model in Ireland is the packaged insurance scheme.u
The real benefits of this approach are most significant for bigger schemes
Typically you would be looking at fees like this
Initial set up fee of around €1000
Annual fees as follows:
QFM 0.25%pa or €900pa minimum
Independent Custodian 0.05%pa
Fund management charges typically range from 0.15% to 0.5%pa depending on fund choice.
If you need the services of a professional adviser these should be paid for separately and not bundled together by an insurance company so that you end up having no idea what you are really paying.
No early surrender penalties, no smoke and mirrors.
If you are wondering why you need a QFM and an independent custodian ask anyone who had their money with Bernie Madoff or Custom House Capital.
Dave Vanian
Registered User
- Messages
- 1,328
Hi Marc,
Do the above charges represent everything a client will pay to access such a product?
Do the above charges represent everything a client will pay to access such a product?
Dave Vanian
Registered User
- Messages
- 1,328
I wouldn't be overly worried about the €900 minimum annual fee as it's explicitly stated. But I have found that some QFMs quote charges and then there's an additional fee on top before you get access to the product. In fairness Marc does say that there's no smoke and mirrors with this one, so I'm hoping not in this instance. Marc - if I was to send someone to you can you confirm that the charges you quote are all that they'll pay?