Key Post: Lowest charging unit linked funds for lump sums

I know this is an old thread but I am posting to give investors a word of warning. I invested very large lump sums, directly into two connected financial institutions. Received NO allocation Bonus, a minuscule reduction in Management Charges and no exit penalties. Most companies operate a template system where bonus, extras are sorted out on your behalf.

Even more ridiculously, ordinary brokers (and discount brokers)are able to offer far better terms and a better deal instead of the companies themselves, for the same products. The Institutions know this themselves and they happily take the money from people on lower offerings and without offering the advise of where they should go for a better deal in the same product. Doesn't cost them a cent extra. This practice occurs if you are an existing client or a new client and don't know your way around this maze.

The Consumer Code is somewhat short on this kind of practice. Have spoken with the Regulator and intend on making a formal submission to the Regulator, The Minister for Finance and my local TD to have this ridiculous practice ceased.

Will post my findings on AAM if the MODS will allow.

Mercman, I'm with you on your personal situation. You've fought well and I wish you the best.

On another note, I've seen some higher risk unit linked products on nil commission still giving an illustrated loss of -50% on the initial investment. Sure the loss would appear greater if the charges were higher but one can only assume the driving force for some of these individuals was a speculative investment because many don't seem to care it's just money that was surplus to requirements, a punt, but why a packaged product when direct investment in shares would have given an arguably better thrill?

Axa Financial have a very competitive unit fund platform which has been available for quite a while now. Passive Equity and Bond funds, from
Blackrock, are 0.45% mgmt fee while the active funds go up to 1.45%.

No entry or Exit penalties, good rebalancing and drip feeding features and a vey high quality list of funds with an extensive selection process before a fund can make it only the platform. Funds like Standard Life GARS have made it along with international managers like JP Morgan, Investec, Schroder. I think about 44 funds so far.

Definitely worth a look. €50,000 minimum and they don't do regular premiums at the moment.

We have used them for clients and have been very happy so far with service and performance. They don't pay commissions on most contracts, so tend to be used more by fee based advisors.

I also recommend axa financial. I went through Liam Ferguson on a no advice basis.

How about checking the TER of these funds. You will then know how much is actually charged for managing your Investments. And don't take NO for an answer. You are legally entitled to know as to how much it costs to run any of these funds. The figures when asked for in writing must be accurate.

Hi Mercman,

I believe they are not under any legal obligation to publish the TER?

I certainly would like to understand all costs (including AMC+TER+others) that are dragging the return on my axa financial funds. Do you have a sample wording of what to ask for?

Last time I tried writing to other providers looking for TER or any costs deducted from the fund, I only got replies quoting the brochure...the AMC is xyz.