Is the 41% Exit Tax Soon to be Scrapped? Michael McGrath to Review

[Duke of Marmalade]

Maybe I'm reading this wrong but how can the Annual Cost Impact (If you exit in year 1) be to 2.76% with the specify charging structure we're talking about?

They give a range of costs despite the specified charging structure. The variation arises in the 3rd and 4th categories below.

I don't know any actuary/manager who puts any credibility at all in KIDs. If you wanted to try and do a competitor comparison you'd not be looking at KIDs. They are really misleading.

I'm not particularly fond of KIDs myself but it was you who introduced them into this debate.

 

[GSheehy]

I'm not particularly fond of KIDs myself but it was you who introduced them into this debate

In the context of the Levy, yes. It's not too difficult to work out that the 'entry charge' relates to the Levy only.

The rest, is a mess.

They give a range of costs despite the specified charging structure. The variation arises in the 3rd and 4th categories below.

In the context of Ongoing Costs each year but we're taking about year one.

Plus, you do see the 0.00% and 1.59% on those rows? What you should probably be doing is deducting the 0.75% from the 1.59% (AMC) giving you a to 0.84%, which would allow for other fund transaction costs too. Indexed Global Equity would bring the 0.75% to circa 0.77%.

I think we've been down this road before though with the fixation of a lot of folk on the figures on the right because they think you have to be buying the worst product available.