Self Directed PRSAs

phantom_lord

IS Davy the only option for a self-directed PRSA?

I currently have a PRSA with Irish Life paying 1% fees, and I really want to move somewhere self-directed where I've access to Vanguard funds.

There's an abundance of fees and charges with Davy though, and before I sit down and work out when it would be worth moving over, I'm just curious to find out if there's any other options?

Frogdog

I believe Merrion have the best self-directed PRSA on the market at the moment.

AlmightyCushion

Frogdog wrote: »

I believe Merrion have the best self-directed PRSA on the market at the moment.

Do you have any details on it. There seems to be very little information available on their website.

phantom_lord

AlmightyCushion wrote: »

Do you have any details on it. There seems to be very little information available on their website.

would be curious about this too!

Frogdog

My wife set one up through an independent financial advisor/certified financial planner, so I'm afraid I haven't looked at their website. I know she did get a good deal and the advice she was given was that they're currently the best. You can PM me for details of the financial advisor if you wish.

Dardania

After setting up a Davy one myself int he last few weeks, to consolidate some pensions from old employment. Will update when I get usernames & passwords on how it actually is...

AlmightyCushion

AlmightyCushion wrote: »

Do you have any details on it. There seems to be very little information available on their website.

Merrion use Zurich Self Directed Pension Portfolios I believe.

Merrion PRSA charges are 0.75% Annual Management Fee along with tranaction commissions 1% on the first €25,000, 0.75% on the balance(minimum charge €100).

phantom_lord wrote: »

.............

There's an abundance of fees and charges with Davy though, and before I sit down and work out when it would be worth moving over, I'm just curious to find out if there's any other options?

DAVY SELECT PERSONAL RETIREMENT SAVINGS ACCOUNT
(PRSA) (EXECUTION-ONLY) fees 0.75% per annum and if you buy low cost ETFs the associated additioonal management charges are typically 0.1/0.2% ........... easy to tend towards the 0.1% too to be fair. Some other costs too but to say there's an abundance of fees and charges with Davy though isn't at all accurate.

srsly78

Yeah you still pay the same fees for self-directed fund, so what is the point?

srsly78

srsly78 wrote: »

Yeah you still pay the same fees for self-directed fund, so what is the point?

Well the OP mentions they have a PRSA with Irish Life with 1% management fees.

IrishLife clear PRSA also have contribution fees ranging from 3.5 to 5%, that's quite significant. A 3% contribution fee over the life of a pension funded from a €60k salary using the maximum contribs that fit the tax relief limits per age with 6% annual growth would take €50k+ from the fund

The Davy and Merrion options don't have contribution fees.
You can go the self directed option but use the default investment strategy so you are hands off

Also, many folk want to manage their own pensions and aren't happy filling in a ticky boxy thing at the start of their pension and paying thousands for nothing going forward.

phantom_lord

Irish Life don't have a contribution fee (you can go through brokers that charge you one, but Irish Life themselves don't).

Yeah you still pay the same fees for self-directed fund, so what is the point?

I just wish there was a way to use Vanguard funds in my PRSA instead of paying 1% management fees for Irish Life funds.

phantom_lord

phantom_lord wrote: »

Irish Life don't have a contribution fee (you can go through brokers that charge you one, but Irish Life themselves don't). ..........

https://www.irishlife.ie/pensions/products/prsa-from-irish-life

"Reduced entry charges
Entry charges are the fees you pay on the contribution you make. If you stay invested in your PRSA pension for five years, we will reward your loyalty by reducing this entry charge. From year six on, the entry charge on your regular contribution will reduce by 0.5% (if there is an entry charge on your plan)"

phantom_lord

I don't pay any through these guys:

https://www.labrokers.ie/pensions/irishlifePRSA.aspx

srsly78

phantom_lord wrote: »

I don't pay any through these guys:

https://www.labrokers.ie/pensions/irishlifePRSA.aspx

Did you miss the bit about 1% per annum fees?

phantom_lord

phantom_lord wrote: »

Irish Life don't have a contribution fee (you can go through brokers that charge you one, but Irish Life themselves don't).



I just wish there was a way to use Vanguard funds in my PRSA instead of paying 1% management fees for Irish Life funds.

phantom_lord wrote: »

I don't pay any through these guys:

https://www.labrokers.ie/pensions/irishlifePRSA.aspx

So with some brokers Irish life waive the contribution fee
"By setting up your PRSA on a nil commission basis through LA Brokers you save 5% on each and every contribution you make to the plan for the life of the plan"

You said earlier that "Irish Life don't have a contribution fee"

phantom_lord

srsly78 wrote: »

Did you miss the bit about 1% per annum fees?

We're talking about contribution fees.

Augeo wrote: »

So with some brokers Irish life waive the contribution fee
"By setting up your PRSA on a nil commission basis through LA Brokers you save 5% on each and every contribution you make to the plan for the life of the plan"

You said earlier that "Irish Life don't have a contribution fee"

I didn't realise that they charge people going to them directly, seems like a strange system. I'll amend it to "you can have access to Irish Life funds without paying a contribution fee".

JackieChan

I set up a Davy Self Directed fund in October last year.

Here are a summary of my findings with them:

Trading Shares in Ireland
No additional charges.Just the stamp duty (1%).

Trading Shares on London Exchange
No additional charges. Just 0.5% stamp duty (No stamp duty on shares trading on AIM exchange). No stamp duty for trading ETFs

Trading on NYSE, European exchanges
€25 custody charge on each trade. Additional 0.1% overseas charge also.

Davy Standard Fees
0.75% for PRSA accounts(its charged in June and December)
0.90% for Executive accounts(only useful if you want to fund it with amounts over the PRSA age limits)

You have USD,EUR,GPB account balances
You can transfer funds to each account using your account ref and it will show up in the app for trading.
But if you want to be a little lazy like me you can just transfer to the EUR account and take the exchange rate they have when trading which I find is probably better than I would get than from transferring my EUR to a USD/EUR bank account.

When you trade shares, you can decide from which account to fund/accept the value.
So I can (if for some reason I wanted to) buy GBP traded Royal Mail shares on FTSE, by paying from my EUR account and I could sell them and have the money placed in my USD account.

All dividends are converted to EUR and placed in your EUR account. Perhaps if contacted Davy could let it go to the relevant currency account but I've not asked them.

Trading Options
You can trade shares and ETF on many of the worlds stock markets. But sometimes I've looked at this you will get a "unfortuntely we are unable to place the order online". In these cases you can ring their trading desk and pay the fees you would have paid if you could have done it online.
This has not happened for the NYSE and LSE exchanges.

They seem to love Blackrocks iShares as currently they have 142 ETF funds available whereas for Vanguard they have less than 10!!
And over half of those are on non-UK exchanges which means you have to pay the €25+overseas charges

You can ask them to make a fund available to you and sometimes they can do it, sometimes not.

My usage and experience
I tend to buy stocks and ETFs on LSE just to avoid the additional fees for buying on other markets, as I may only be buying a few shares each month in each fund.
I can get low cost S&P, Stoxx 50,FTSE,Japanese and EM ,etc..and the bond funds I want so I'm pretty happy and it allows me to have the allocations that I want

I also take a few punts on individual US stocks but the costs here can add up (Need an increase of 0.2% transaction+€50 just to break even).

I transferred three other pension funds into this account and bar a few forms it wasn't a problem. If you need to do this, contact the other pension provider and they will provide the forms to complete. Engage Davy once you have the forms as they will have to send on Willing and Able forms to the provider to say they can take the funds but nothing hairy here.

Any questions just shout.

JackieChan

JackieChan wrote: »

..............
0.90% for Executive accounts(only useful if you want to fund it with amounts over the PRSA age limits)...............

............ the additional tax relief isn't useful?
If you can open an executive pension account opening a PRSA instead is lunacy.

JackieChan

Augeo wrote: »

............ the additional tax relief isn't useful?
If you can open an executive pension account opening a PRSA instead is lunacy.

Surely, only if you have the funds to make it worthwhile. There is no point in paying 0.9% annual fee if you can't fund more than the PRSA limits which would only cost 0.75%? Please let me know if I have this wrong, always open to correction.

I can't edit my earlier post, but here is link to Davy portal which gives a good feel to it.

https://www.youtube.com/watch?v=5iA3q9KdVjM

Well if you fund any of the PRSA as an employee you get PAYE tax relief, personal contribution does not qualify for PRSI or USC relief. You can fund 100% of the executive pension direct from the company.

Employer contributions to an employee PRSA is a BIK for income tax, this BIK is subject to USC .... which the employee pays.

I don't think the extra 0.15% saved in management fees exceeds the above charges

JackieChan

Great. So executive is a no brainier..I had looked at the options when deciding on the pension type and had gone with the executive because of higher thresholds.

Dardania

So, I've had my Davy Select PRSA account working for about 10 days now, with 1 of two old pensions funded into it. So have been able to mess around with the interface etc. - JackieChan's review earlier is great.

Coming from a Goodbody world, in my opinion, the Davy interface & particualrly the link up with MorningStar, are far superior. One thing Goodbody does well is the historical perspective, showing your history with each stock. Will come handy when I eventually sell my Goodbody portfolio, and finally figure out tax implications, what CGT I owe etc.

Speaking of tax, and maybe this is better directed at Davy themselves, have people here been charged the dividend withholding tax on any dividends yet, or do Davy automatically apply an exemption as this is a pension account?
And has anyone encountered difficulty with electing for SCRIPS rather than income? 

On the available finds & stocks sides, similar to JackieChan, they are sometimes heloful, sometimes not. I fund I wanted to invest in was one I read extensively about, the Swedish national pension fund - it was apparently designed to give good long term returns for people, with minimal fees (http://www.morningstar.se/Funds/Quicktake/Overview.aspx?perfid=0P0000O4CX ) - mo dice, Davy couldn't offer it to me. 
However, for the IPO of todays Greencoat (http://www.ise.ie/Market-Data-Announcements/Companies/Equity-Details/?equity=2015023 ) - there was a minor issue in Davy's platform where it showed the Irish equity as GBP - a brief telephone call later and they execuuted the trade for me over the phone. So they do respond positively also...

OU812

Dardania wrote: »

So, I've had my Davy Select PRSA account working for about 10 days now, with 1 of two old pensions funded into it.

Can you use the value of the old pension to fund purchasing stocks/further investments?

Dardania

OU812 wrote: »

Dardania wrote: »

So, I've had my Davy Select PRSA account working for about 10 days now, with 1 of two old pensions funded into it.

Can you use the value of the old pension to fund purchasing stocks/further investments?

Yes - got them transferred in

OU812

Dardania wrote: »

Yes - got them transferred in

And you're using the funds in that to finance trading?

Dardania

OU812 wrote: »

Dardania wrote: »

Yes - got them transferred in

And you're using the funds in that to finance trading?

Buying long term investments, yes.
Still have the Goodbody account for riskier propositions, or money I might want to get access to before I retire easily

Dardania

For those that are interested, and hopefully this works - these are the ETFs Davy allows access to:

https://lt.morningstar.com/m3dllinql4/etfquickrank/default.aspx?davyadvisor=www

and these are the funds:

https://lt.morningstar.com/m3dllinql4/fundquickrank/default.aspx?davyadvisor=www

Of particular note, and mentioned by a poster on another thread (which convinced me to go for the Davy execution only PRSA route) are the Davy funds with no fees e.g. this one:
https://lt.morningstar.com/m3dllinql4/snapshot/snapshot.aspx?id=F00000WBD6
I'm guessing that the ETFs it invests in still pay fees, but still, a nice way to get a good spread of different ETFs I think (in my naive mind)

Edit: Maybe that Davy fund isn't actually no fees - this seems to suggest there are fees: http://www.davyselect.ie/investment-choices/gps-funds.html  - or maybe that applies to the "B" funds: 2]1]FOALL$$ALL_1118&Id=F00000PZOH&ClientFund=1&BaseCurrencyId=EUR&CurrencyId=EUR&LanguageId=en-GB]https://lt.morningstar.com/m3dllinql4/snapshot/snapshot.aspx?tab=0&SecurityToken=F00000PZOH]2]1]FOALL$$ALL_1118&Id=F00000PZOH&ClientFund=1&BaseCurrencyId=EUR&CurrencyId=EUR&LanguageId=en-GB

JackieChan

Hi Dardania,
Those gps funds have ongoing fees between 1.46% and 1.6% ( I'm assuming the pension charge of .75%/.9% is on top of this also!)

The fund from the last link has a 1% annual charge but the TER is not given so probably higher again.

I'd say keep it relatively simple (and cheaper )with a geographic spread of low cost ETFs

Dardania

JackieChan wrote: »

Hi Dardania,
Those gps funds have ongoing fees between 1.46% and 1.6% ( I'm assuming the pension charge of .75%/.9% is on top of this also!)

The fund from the last link has a 1% annual charge but the TER is not given so probably higher again.

I'd say keep it relatively simple (and cheaper )with a geographic spread of low cost ETFs

Thanks for that - I suspect you're right, and they have just not correctly identified the fees on morningstar. I have emailed Davy to confirm so I'll see what they say as to what the exact fees are.

I was quite hoping these funds would be free, as they've done the hard / intelligent work which I don't have the experience for or confidence in, of choosing the geographic spread of ETFs (hence my earlier interest in the Swedish pension fund) - but I may just have to figure it out...

davyselect

Dardania wrote: »

Thanks for that - I suspect you're right, and they have just not correctly identified the fees on morningstar. I have emailed Davy to confirm so I'll see what they say as to what the exact fees are.

I was quite hoping these funds would be free, as they've done the hard / intelligent work which I don't have the experience for or confidence in, of choosing the geographic spread of ETFs (hence my earlier interest in the Swedish pension fund) - but I may just have to figure it out...

Hi Dardania,

Thanks for choosing Davy Select. The pension management fee is not charged on top of the GPS fee. When you invest in GPS you only pay the GPS fees. Also, the funds/etfs which you see on Morningstar and only a fraction of the funds available on the platform. There are over 9,000 ETFs and 20,000 Funds available. Just call the dealing desk and they will advise if a particular fund you want is available.

Dardania

davyselect wrote: »

Dardania wrote: »

Thanks for that - I suspect you're right, and they have just not correctly identified the fees on morningstar. I have emailed Davy to confirm so I'll see what they say as to what the exact fees are.

I was quite hoping these funds would be free, as they've done the hard / intelligent work which I don't have the experience for or confidence in, of choosing the geographic spread of ETFs (hence my earlier interest in the Swedish pension fund) - but I may just have to figure it out...

Hi Dardania,

Thanks for choosing Davy Select. The pension management fee is not charged on top of the GPS fee. When you invest in GPS you only pay the GPS fees. Also, the funds/etfs which you see on Morningstar and only a fraction of the funds available on the platform. There are over 9,000 ETFs and 20,000 Funds available. Just call the dealing desk and they will advise if a particular fund you want is available.

Thanks for that - what is the GPS fee? As on this :

https://lt.morningstar.com/m3dllinql4/snapshot/snapshot.aspx?tab=5&Id=F00000WBD6&ClientFund=0&BaseCurrencyId=GBP&CurrencyId=GBP&LanguageId=en-GB

There is noted no fees.

Whereas on this:

https://lt.morningstar.com/m3dllinql4/snapshot/snapshot.aspx?tab=5&SecurityToken=F00000PZOH&Id=F00000PZOH&ClientFund=0&BaseCurrencyId=EUR&CurrencyId=GBP&LanguageId=en-GB

There is a fee noted.

davyselect

davyselect wrote: »

Hi Dardania,

Thanks for choosing Davy Select. The pension management fee is not charged on top of the GPS fee. When you invest in GPS you only pay the GPS fees. Also, the funds/etfs which you see on Morningstar and only a fraction of the funds available on the platform. There are over 9,000 ETFs and 20,000 Funds available. Just call the dealing desk and they will advise if a particular fund you want is available.

Welcome along, I'm a big fan
You might need to enquire about getting a verified account, just an FYI

davyselect

Augeo wrote: »

Welcome along, I'm a big fan
You might need to enquire about getting a verified account, just an FYI

Many thanks. I have requested info on getting a verified account

davyselect

Dardania wrote: »

Thanks for that - what is the GPS fee? As on this :



There is noted no fees.

Whereas on this:



There is a fee noted.

Hi Dardinia,

The total expenses ratios (TERs) for each fund are as follows:

Cautious: 1.46%
Balanced: 1.54%
Long Term: 1.59%

The TER is the most accurate representation of costs and includes the costs of all the underlying funds that GPS invests in. You should always use TER as opposed to Annual Management Charge (AMC) when looking at costs.

Hope this helps

Dardania

davyselect wrote: »

Dardania wrote: »

Thanks for that - what is the GPS fee? As on this :



There is noted no fees.

Whereas on this:



There is a fee noted.

Hi Dardinia,

The total expenses ratios (TERs) for each fund are as follows:

Cautious: 1.46%
Balanced: 1.54%
Long Term: 1.59%

The TER is the most accurate representation of costs and includes the costs of all the underlying funds that GPS invests in. You should always use TER as opposed to Annual Management Charge (AMC) when looking at costs.

Hope this helps

Okay, that's great - much clearer...I'll keep an eye on this TER term more now.
 Is the normal 0.75% for the Davy PRSA account on top again (or is that waived, per what you mention about Pension Management Fee above)?
And for those two funds I linked - they're both your long term growth accumulator - is the only difference € vs. GBP?

davyselect

Dardania wrote: »

Okay, that's great - much clearer...I'll keep an eye on this TER term more now.
 Is the normal 0.75% for the Davy PRSA account on top again (or is that waived, per what you mention about Pension Management Fee above)?
And for those two funds I linked - they're both your long term growth accumulator - is the only difference € vs. GBP?

Hi, The PRSA account fee is waived on any portion of your portfolio thats invested in GPS i.e there is no double charge. The 2 funds on your previous post are the A and B class sterling versions of the the GPS Long Term Growth fund. The A class is not available to retail investors.

FYI GPS is available in both Euro and Sterling versions.

JackieChan

Originally Posted by davyselect View Post
Hi Dardania,

Thanks for choosing Davy Select. The pension management fee is not charged on top of the GPS fee. When you invest in GPS you only pay the GPS fees. Also, the funds/etfs which you see on Morningstar and only a fraction of the funds available on the platform. There are over 9,000 ETFs and 20,000 Funds available. Just call the dealing desk and they will advise if a particular fund you want is available.

Great to have Davy on here.
I must check out those GPS funds also.

1 sneaky question and comment here on my first 10mths with Davy Select!

Is there anyway these can be made available online without having to call the dealing desks? In particular there are 100s of iShare ETFs but less than 10 Vanguard ETFs available.

Also it would be great to have more of the LSE ETFS made available. Many of the ones I'm interested in are only available with Davy on the Swizz,German or Amsterdam exchanges but to save on Custody charge I want to buy the LSE versions of them.

davyselect

JackieChan wrote: »

Great to have Davy on here.
I must check out those GPS funds also.

1 sneaky question and comment here on my first 10mths with Davy Select!

Is there anyway these can be made available online without having to call the dealing desks? In particular there are 100s of iShare ETFs but less than 10 Vanguard ETFs available.

Also it would be great to have more of the LSE ETFS made available. Many of the ones I'm interested in are only available with Davy on the Swizz,German or Amsterdam exchanges but to save on Custody charge I want to buy the LSE versions of them.

Hi Jackie,

Listing the full range of ETFs for online trading is a challenge for us both for regulatory and technical reasons. We have access to virtually all exchange traded instruments on the dealing desk. There is no extra charge for phone dealing if the instrument is not available online so you don't pay any more.

Vanguard is a good example. We have access to more than 3,900 Vanguard ETFs on the platform.

There should be no problem accessing any ETF on the LSE. We have access to them all.

Hope this helps

Dardania

Hi Davyselect - two topics that come to mind RE the PRSA execution only account that you might be able to advise:

If an invested stock pays a dividend, is the dividend withholding tax applied, or do Davy automatically apply an exemption as this is a pension account?

And if a stock offers it, is it okay to elect for SCRIPS rather than dividend income? If so, how to do it? (I'm guessing directly with the company in question?)

JackieChan

davyselect wrote: »

Hi Jackie,

Listing the full range of ETFs for online trading is a challenge for us both for regulatory and technical reasons. We have access to virtually all exchange traded instruments on the dealing desk. There is no extra charge for phone dealing if the instrument is not available online so you don't pay any more.

Vanguard is a good example. We have access to more than 3,900 Vanguard ETFs on the platform.

There should be no problem accessing any ETF on the LSE. We have access to them all.

Hope this helps

As much as I like DavySelect I'll be honest having to call the dealing desk to make purchases of perhaps only 1-2 shares depending on my allocation is not something that I'm going to do and is probably my biggest disappointment with the service.

Make all or at least many more iShares/Vanguard ETFs that are traded on LSE available online and I will be very happy!!

thomasm

JackieChan wrote: »

Hi Dardania,
Those gps funds have ongoing fees between 1.46% and 1.6% ( I'm assuming the pension charge of .75%/.9% is on top of this also!)

The fund from the last link has a 1% annual charge but the TER is not given so probably higher again.

I'd say keep it relatively simple (and cheaper )with a geographic spread of low cost ETFs

Came across this before on the Davy GPS funds fees from their own Key Info Document. Real eye opener in terms of fees charged(13 in total, some of which are open and not quantified)

Investment Management Fee A fee of up to 1% per annum of the value of each Fund is payable to the Investment Manager. The Investment Manager is also entitled to its reasonable out-of pocket expenses out of the assets of the Funds.

Commission There may be a charge of up to 5% entry commission on any subscription for units in the Funds and up to 3% exit charge on redemption's.

Director’s Fees A maximum fee of €40,000 plus VAT per annum will be payable to each Director of the Company from the assets of the Funds. All Directors will be entitled to reimbursement of expenses in connection with the business of Davy Funds plc or the discharge of their duties.

Custodian Fee The annual fee of the Custodian is up to 0.015% of the net asset value of each Fund, subject to a minimum monthly fee of €600 per Fund as well as a transaction fee for each transaction conducted. The Custodian is also entitled to its reasonable out-of pocket expenses out of the assets of the Funds.

Administrator’s Fees The annual fee of the Administrator is 0.085% of the net asset value of each Fund, subject to a minimum annual fee of €30,000 as well as a transaction fee for each transaction conducted. The Administrator is also entitled to its reasonable out-of pocket expenses out of the assets of the Funds.

Money Laundering Reporting Officer’s Fees
An annual fee of USD20,000 and any applicable taxes will be paid out of the assets of the Fund in respect of the Money Laundering Reporting Officer.

Establishment Expenses All fees and expenses (estimated to amount to approx. €75,000) in relation to the establishment and organisation of the Company and the initial Funds will be taken out of the assets of the Funds.

Fees payable within the Underlying Investment Funds
The Underlying Funds in which the Funds may invest will bear their own fees and expenses. They will also be subject to management fees and other expenses of a similar nature to those applying with respect to the Funds such as redemption fees, subscription fees and the fees of service providers such as the custodian, trustees and administrators. The Funds will typically only invest in Underlying Funds, which charge management fees of up to 3% of the Underlying Fund’s net asset value.

Anti-Dilution Levy Upon the recommendation of the relevant Investment Manager, an Anti-Dilution Levy may be imposed. Please refer to the Prospectus for further detail.

Operational Expenses The Funds will be liable for certain fees and expenses related to the provision of these services including but not limited to Agent Fees, Distributor Fees, sub-custodians and sub-investment managers fees. Please refer to the “Fees & Expenses” section of the Prospectus for additional information.

keane2097

Fees sound crazy. Also beyond ridiculous to not have all of the funds online. I will take a wild guess that the ones they allow you to switch between online are the ones that they charge you a fortune for the privilege of owning.

Dardania

thomasm wrote: »

JackieChan wrote: »

Hi Dardania,
Those gps funds have ongoing fees between 1.46% and 1.6% ( I'm assuming the pension charge of .75%/.9% is on top of this also!)

The fund from the last link has a 1% annual charge but the TER is not given so probably higher again.

I'd say keep it relatively simple (and cheaper )with a geographic spread of low cost ETFs

Came across this before on the Davy GPS funds fees from their own Key Info Document. Real eye opener in terms of fees charged(13 in total, some of which are open and not quantified)

Investment Management Fee A  fee of up to 1% per annum of the value of each Fund is payable to the  Investment Manager. The Investment Manager is also entitled to its  reasonable out-of pocket expenses out of the assets of the Funds.

Commission There may be a charge of up to 5% entry commission on  any subscription for units in the Funds and up to 3% exit charge on  redemption's.

Director’s Fees A maximum fee of €40,000 plus VAT per annum will  be payable to each Director of the Company from the assets of the Funds.  All Directors will be entitled to reimbursement of expenses in  connection with the business of Davy Funds plc or the discharge of their  duties.

Custodian Fee The annual fee of the Custodian is up to 0.015% of  the net asset value of each Fund, subject to a minimum monthly fee of  €600 per Fund as well as a transaction fee for each transaction  conducted. The Custodian is also entitled to its reasonable out-of  pocket expenses out of the assets of the Funds.

Administrator’s Fees The annual fee of the Administrator is  0.085% of the net asset value of each Fund, subject to a minimum annual  fee of €30,000 as well as a transaction fee for each transaction  conducted. The Administrator is also entitled to its reasonable out-of  pocket expenses out of the assets of the Funds.

Money Laundering Reporting Officer’s Fees
An annual fee of USD20,000 and any applicable taxes will be paid out of  the assets of the Fund in respect of the Money Laundering Reporting  Officer.

Establishment Expenses All fees and expenses (estimated to amount  to approx. €75,000) in relation to the establishment and organisation  of the Company and the initial Funds will be taken out of the assets of  the Funds.

Fees payable within the Underlying Investment Funds
The Underlying Funds in which the Funds may invest will bear their own  fees and expenses. They will also be subject to management fees and  other expenses of a similar nature to those applying with respect to the  Funds such as redemption fees, subscription fees and the fees of  service providers such as the custodian, trustees and administrators.  The Funds will typically only invest in Underlying Funds, which charge  management fees of up to 3% of the Underlying Fund’s net asset value.

Anti-Dilution Levy Upon the recommendation of the relevant  Investment Manager, an Anti-Dilution Levy may be imposed. Please refer  to the Prospectus for further detail.

Operational Expenses The Funds will be liable for certain fees  and expenses related to the provision of these services including but  not limited to Agent Fees, Distributor Fees, sub-custodians and  sub-investment managers fees. Please refer to the “Fees & Expenses”  section of the Prospectus for additional information.

The price of someone else doing your thinking for you I guess...
http://www.thisismoney.co.uk/money/investing/article-4644214/Single-fee-fund-investors-backed-FCA.html seems like it will help address hidden costs...

davyselect

JackieChan wrote: »

As much as I like DavySelect I'll be honest having to call the dealing desk to make purchases of perhaps only 1-2 shares depending on my allocation is not something that I'm going to do and is probably my biggest disappointment with the service.

Make all or at least many more iShares/Vanguard ETFs that are traded on LSE available online and I will be very happy!!

Hi Jackie

If you let me know which funds in particular you wish to access on an ongoing basis and I will check if we can activate them for online trading.

davyselect

thomasm wrote: »

Came across this before on the Davy GPS funds fees from their own Key Info Document. Real eye opener in terms of fees charged(13 in total, some of which are open and not quantified)

Investment Management Fee A fee of up to 1% per annum of the value of each Fund is payable to the Investment Manager. The Investment Manager is also entitled to its reasonable out-of pocket expenses out of the assets of the Funds.

Commission There may be a charge of up to 5% entry commission on any subscription for units in the Funds and up to 3% exit charge on redemption's.

Director’s Fees A maximum fee of €40,000 plus VAT per annum will be payable to each Director of the Company from the assets of the Funds. All Directors will be entitled to reimbursement of expenses in connection with the business of Davy Funds plc or the discharge of their duties.

Custodian Fee The annual fee of the Custodian is up to 0.015% of the net asset value of each Fund, subject to a minimum monthly fee of €600 per Fund as well as a transaction fee for each transaction conducted. The Custodian is also entitled to its reasonable out-of pocket expenses out of the assets of the Funds.

Administrator’s Fees The annual fee of the Administrator is 0.085% of the net asset value of each Fund, subject to a minimum annual fee of €30,000 as well as a transaction fee for each transaction conducted. The Administrator is also entitled to its reasonable out-of pocket expenses out of the assets of the Funds.

Money Laundering Reporting Officer’s Fees
An annual fee of USD20,000 and any applicable taxes will be paid out of the assets of the Fund in respect of the Money Laundering Reporting Officer.

Establishment Expenses All fees and expenses (estimated to amount to approx. €75,000) in relation to the establishment and organisation of the Company and the initial Funds will be taken out of the assets of the Funds.

Fees payable within the Underlying Investment Funds
The Underlying Funds in which the Funds may invest will bear their own fees and expenses. They will also be subject to management fees and other expenses of a similar nature to those applying with respect to the Funds such as redemption fees, subscription fees and the fees of service providers such as the custodian, trustees and administrators. The Funds will typically only invest in Underlying Funds, which charge management fees of up to 3% of the Underlying Fund’s net asset value.

Anti-Dilution Levy Upon the recommendation of the relevant Investment Manager, an Anti-Dilution Levy may be imposed. Please refer to the Prospectus for further detail.

Operational Expenses The Funds will be liable for certain fees and expenses related to the provision of these services including but not limited to Agent Fees, Distributor Fees, sub-custodians and sub-investment managers fees. Please refer to the “Fees & Expenses” section of the Prospectus for additional information.

The TERs I referred to earlier are the total on going charges for these funds. There is no commission on GPS, no entry or exit charges, no set up fees, no MLRO fees and no directors fees. The TER includes investment management, custodian and 3rd party fund fees. The key investor information factsheets for funds include lists of fees which may be charged but very often are not. The TER is always the most accurate guide for charges

davyselect

keane2097 wrote: »

Fees sound crazy. Also beyond ridiculous to not have all of the funds online. I will take a wild guess that the ones they allow you to switch between online are the ones that they charge you a fortune for the privilege of owning.

There are over 1,000 funds available to trade online. 3 of them are Davy funds!! You can switch between any funds either online or offline on the platform.

As previously stated it is not possible to make all of the funds available for online trading. The vast majority of these funds are not registered for sale in Ireland by the fund manager. Therefore they cannot be listed for sale on a website. The funds can be bought where there is a reverse enquiry from a client but this has to be done over the phone. There is no extra charge for this.

Dardania

Dardania wrote: »

Hi Davyselect - two topics that come to mind RE the PRSA execution only account that you might be able to advise:

If an invested stock pays a dividend, is the dividend withholding tax applied, or do Davy automatically apply an exemption as this is a pension account?

And if a stock offers it, is it okay to elect for SCRIPS rather than dividend income? If so, how to do it? (I'm guessing directly with the company in question?)

Hi there - just to bump this in case it dropped off the page for Davyselect - any feedback?

davyselect

Dardania wrote: »

Hi there - just to bump this in case it dropped off the page for Davyselect - any feedback?

Hi Dardinia

Davy Select pension accounts are DWT exempt for Irish dividends. For overseas dividends withholding tax may be deducted at source from the domiciled country. US 15%, France 20%, Germany 26.375% and Canada 25%.

Any client can offer to receive SCRIP dividends provided they are offered by the company. This can be done at either account set up or later on. Otherwise the account will default to accepting dividends as income in Euro. You can also request to receive dividend income received in the local currency (USD/GBP).

Hope this helps

Dardania

davyselect wrote: »

Dardania wrote: »

Hi there - just to bump this in case it dropped off the page for Davyselect - any feedback?

Hi Dardinia

Davy Select pension accounts are DWT exempt for Irish dividends. For overseas dividends withholding tax may be deducted at source from the domiciled country. US 15%, France 20%, Germany 26.375% and Canada 25%.

Any client can offer to receive SCRIP dividends provided they are offered by the company. This can be done at either account set up or later on. Otherwise the account will default to accepting dividends as income in Euro. You can also request to receive dividend income received in the local currency (USD/GBP).

Hope this helps

Hi Davyselect,

many thanks for that - just to be 100% clear - when you say Irish dividends, this means those listed on ISE, or does it apply to those that are domiciled in Ireland?
e.g. take this example: https://www.justetf.com/en/etf-profile.html?sortField=ter&groupField=none&equityStrategy=Dividend&sortOrder=asc&from=search&isin=IE00BQZJBQ63&distributionPolicy=distributionPolicy-distributing&assetClass=class-equity ;

listed in the UK etc. but domiciled in Ireland? Would DWT be exempted here as it is domiciled in Ireland (or maybe it would be DWT exempt in any account as it is UK listed?)

davyselect

Dardania wrote: »

Hi Davyselect,

many thanks for that - just to be 100% clear - when you say Irish dividends, this means those listed on ISE, or does it apply to those that are domiciled in Ireland?
e.g. take this example: https://www.justetf.com/en/etf-profile.html?sortField=ter&groupField=none&equityStrategy=Dividend&sortOrder=asc&from=search&isin=IE00BQZJBQ63&distributionPolicy=distributionPolicy-distributing&assetClass=class-equity 

listed in the UK etc. but domiciled in Ireland? Would DWT be exempted here as it is domiciled in Ireland (or maybe it would be DWT exempt in any account as it is UK listed?)

Hi Dardinia,

It is the jurisdiction where the stock is incorporated that is relevant not the jurisdiction where the stock may be quoted.

In the case of the WisdomTree ETF you have referenced, the fund is domiciled in Ireland and would be taxed as an Irish fund. As this fund is held on a clearing system recognised by Irish revenue there is no requirement for them to withhold tax at source.

As your PRSA is marked as Irish tax exempt you would have no requirement to include it in your annual tax return.

Hope this helps

panoramix

Hi Davyselect,
I just read about EuroNext acquiring the Irish Stock Exchange (which, if I read correctly, Davy is a co-owner of):
www_irishtimes_com/business/markets/euronext-says-irish-exchange-deal-key-to-further-m-a-1.3397529

How is this going to affect (in terms of costs/fees, or any other terms) the self directed Davy PRSAs?

1. things stay as they are (no fees on ISE/LSE listed funds, 0.10% +25e per transaction on other exchanges?
2. no fees for funds on LSE and all exchanges in the EuroNext circuit?
3. no fees on LSE; 0.10% +25e per transaction on other exchanges (including EuroNext and ISE)?
4. any other combination?

i.e. will things get better or worse?

While I understand you may not have a definitive answer at this point in time, please share whatever information you know/are allowed to. :-)

Thanks

davyselect

Hi panoramix,

Things remain exactly the same. No changes in fees or terms as a result of the ISE sale and none planned.

Regards
davyselect


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