Setting up a PRSA - Fund Management Charge 1.4%

C

Cilroife

Registered User
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9
Hi all,

I am setting up a PRSA at the moment. There is a fund management charge of 1.4 % broken into two parts, 0.5% to the broker and 0.9% to the fund - is this reasonable?

The fund is - " Standard Life Vanguard Global Stock Index Fund"


This is the part in the letter from the advisor on the fees "100% of your funds will be invested from day one. The fund management charge is 1.4%, this includes an annual fee of 0.5% paid to XYZ Advisor for ongoing review and management of your plan. XYZ Financial Planning is paid an initial commission by the provider for placing the business with them. This is at no cost to you and is paid directly to XYZ over a period of time."


Any advice appreciated


Thanks
 
Cilroife said:
There is a fund management charge of 1.4 % broken into two parts, 0.5% to the broker and 0.9% to the fund - is this reasonable?
Click to expand...
No, it seems very expensive and, in my opinion, you should be aiming for less than 1% in total and possibly c. half what you're being quoted if you go execution only. Some execution only brokers to consider...

PRSA Ireland | PRSA.ie

Low Cost Pensions Ireland Zurich LIfe The Value Pension Website Execution Only PRSA AVC PRSA Pensions www.prsa.ie
www.prsa.ie

Ferguson and Associates

Pensions (including Self Administered) Life Assurance - Income Protection Savings - Investments
www.ferga.com
On the other hand maybe some people are happy to pay such a high fee for more involvement by the broker, ongoing reviews etc.

If you search for existing threads you'll probably find more info and suggestions about PRSAs in general and ones using SL Vanguard funds in particular.
 
Last edited:
ClubMan said:
I'm getting it for 0.67% AMC although including a discount attributable to an earlier large transfer from another PRSA provider.

Did you mean 1%?
Click to expand...
I deleted my post.
I was thinking that 0.9% was the extra provider fee for that particular fund.
But I now think that the 0.9% is the total provider fee and the extra 0.5% is being added on by the broker for advice.
 
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