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Aviva L&G Multi-Index Fund

  • 22-05-2017 3:09pm
    #1
    Benzino
    Registered Users Posts: 3,802 ✭✭✭


    Hey,

    I'm a complete amateur when it comes to investing, but I've been advised to go with Aviva L&G Multi-Index fund to invest a lump sum which I have saved up. The reason they were advised to me was because they
    have low annual management fees with a clear charging structure.

    There isn't much online about people's experience with it, so just wondering if anybody here has used it and what have they thought of it (e.g. any issues, hidden costs etc). All anybody seems to talking about is Degiro but that seems more hands on than what I'd be looking for, I guess this is more like Vanguard?

    Thanks.


Comments

  • #2
    topper_harley2
    Registered Users Posts: 537 ✭✭✭topper_harley2


    Benzino wrote: »
    Hey,
    I'm a complete amateur when it comes to investing, but I've been advised to go with Aviva L&G Multi-Index fund to invest a lump sum which I have saved up. The reason they were advised to me was because they
    have low annual management fees with a clear charging structure.
    Thanks.
    Hmm, can I pose a few questions. Who is advising you? What is is low annual management fee exactly? Can you define "clear charging structure". Have you read the fund fact sheets and KIID (Key Investor Information Document)?

    You have not given any information as to why you are interested in investing or these funds, save for someone advising you of same. Before investing anything you should be able to answer all of following:

    -What is attracting you to investing?
    -What existing savings have you
    -Do you want to save or invest, and do you know the difference
    -Have you any high interest credit card
    -Have you a rainy day fund of 3-6 months salary
    -Have you a pension
    -If no, why not?
    -If yes, do you get employer match
    -Do you make pension AVCs?
    -If no, why not?
    -If yes, how much?
    -Have you any investment property
    -What exactly constitutes success for any investment portfolio (and "I want better return than the banks" is not an answer!)
    -How long are you happy to be without this money
    -What would you do if value dropped 30% overnight
    -What is your tax rate
    -Are you taxed in Ireland
    -Have you any existing CGT losses
    -Do you understand UCIT ETF and their tax issues
    -Do you understand deemed disposal of unit linked funds that are advised to you
    -Do you have a mortgage? If so, what rate, tracker, SVR etc?

    Did your friendly advisor ask you all those questions before recommending to throw your hard earned money into Aviva funds?


  • #3
    Benzino
    Registered Users Posts: 3,802 ✭✭✭Benzino


    topper_harley2 wrote: »
    Hmm, can I pose a few questions. Who is advising you? What is is low annual management fee exactly? Can you define "clear charging structure". Have you read the fund fact sheets and KIID (Key Investor Information Document)?

    Of course you can, happy to answer! I am being advised by an independent financial advisor. The annual management charge is 0.7% and what I mean by the charging structure is that there appears (from everything I have read and been advised of) that there are no other charges, no early encashment charge (well there can be if you opt for it in return for a slightly lower AMC).

    I have read the fact sheet, it's seems ok. This would be an area I wouldn't know a much about. The performance looks good (but I guess it would). It shows the top regions and asset classes which the UK is topping (bit surprised by that). I can send the factsheet on if your interested. I have not seen the KIID.
    topper_harley2 wrote: »
    You have not given any information as to why you are interested in investing or these funds, save for someone advising you of same. Before investing anything you should be able to answer all of following:

    -What is attracting you to investing?
    -What existing savings have you
    -Do you want to save or invest, and do you know the difference
    -Have you any high interest credit card
    -Have you a rainy day fund of 3-6 months salary
    -Have you a pension
    -If no, why not?
    -If yes, do you get employer match
    -Do you make pension AVCs?
    -If no, why not?
    -If yes, how much?
    -Have you any investment property
    -What exactly constitutes success for any investment portfolio (and "I want better return than the banks" is not an answer!)
    -How long are you happy to be without this money
    -What would you do if value dropped 30% overnight
    -What is your tax rate
    -Are you taxed in Ireland
    -Have you any existing CGT losses
    -Do you understand UCIT ETF and their tax issues
    -Do you understand deemed disposal of unit linked funds that are advised to you
    -Do you have a mortgage? If so, what rate, tracker, SVR etc?

    Did your friendly advisor ask you all those questions before recommending to throw your hard earned money into Aviva funds?

    He would have gone through most of those questions, but not all of them (such as the UCIT ETF question).

    Basically, I had money just sitting in my bank account doing nothing. I wanted to set up a pension (done), move a good portion of it into savings account (done, I've 6+ months cash available at any time) and then use the remainder to hopefully earn some money off it. I'd be happy with modest returns on it, and while obviously disappointed, can afford for it to lose money as well.


  • #4
    topper_harley2
    Registered Users Posts: 537 ✭✭✭topper_harley2


    Assume its this: http://www.aviva.ie/media-library/1.470.09.16-L&G-Multi-Index-Funds-Customer-Brochure.pdf

    I still dont like that they dont call out the AMC, e.g. what good is this?!
    The annual fund management charge on these funds is 0.05% per annum
    lower than our standard annual fund management charge.

    If it is 0.7% all in (would be surprised if thats the total charge to be honest), then that is not bad for a Life Company. There was a thread (http://www.boards.ie/vbulletin/showthread.php?t=2057733979) where BOI were charging 1.7% for similar, so you're doing better there anyway!

    Sounds like you've done your homework with independent advisor, so that's good. Impossible to comment on the individual funds themselves, as you say there is squat online. You'll only know in ten years. Only invest what you can afford to lose and hope for the best. Index tracker is definitely the way to go though, in my opinion.


  • #5
    Benzino
    Registered Users Posts: 3,802 ✭✭✭Benzino


    topper_harley2 wrote: »
    Assume its this: http://www.aviva.ie/media-library/1.470.09.16-L&G-Multi-Index-Funds-Customer-Brochure.pdf

    I still dont like that they dont call out the AMC, e.g. what good is this?!



    If it is 0.7% all in (would be surprised if thats the total charge to be honest), then that is not bad for a Life Company. There was a thread (http://www.boards.ie/vbulletin/showthread.php?t=2057733979) where BOI were charging 1.7% for similar, so you're doing better there anyway!

    Sounds like you've done your homework with independent advisor, so that's good. Impossible to comment on the individual funds themselves, as you say there is squat online. You'll only know in ten years. Only invest what you can afford to lose and hope for the best. Index tracker is definitely the way to go though, in my opinion.

    Yeah, that annoyed me too, you have to go hunting it down. It states it in the factsheet as 0.7, and I did see somewhere that their usual charge is 0.75. I can't see any other charges (besides early encashment), but that's partly why I am here to see if anybody else encountered any :) I'm guessing it's new hence the lack of information.

    Thanks for your input, I appreciate your views on it :)


  • #6
    BigChair
    Registered Users Posts: 3 ✭BigChair


    I've just been advised on L&G multi-index v fund series b.

    They approached four companies from our preferred provider list, the annual management charges offered were:

    Irish Life 1.25%
    Standard Life 1.45%
    Zurich 1.50%
    Aviva 1.15%

    Isn't anything over 1% bad? I'd be interested how you got this 0.7%.


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  • #7
    BigChair
    Registered Users Posts: 3 ✭BigChair


    All of the above rates include 0.5% rebate payable to the adviser.


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