AFH Wealth Management - discretionary fund management info

[giger]

K12beano said:

I see AFH are mentioned. I have nothing specific to say, but in general as they are one of a handful of quite ambitious "consolidators" in the industry.

In simple terms, one firm taking over another tends to happen for one of several core reasons, but undoubtedly the objective of the takeover is for the subsequent business to continue to make or increase income to repay, almost invariably, the borrowing which allowed the acquisition.

So, in simple terms, the business model is shifting. That's not necessarily a bad thing, however that leaves no room for any nostalgia or "loyalty" for continuing patronage from the customer's perspective. Ruthlessly review what qualities the "new" firm has to offer....

Thanks. I did get the sense that I was almost being forcibly taken down this new route, and made to sound like an idiot for even questioning it. As such, and following feedback here I will definitely not be pursuing this.

[K12beano]

giger said:

Thanks. I did get the sense that I was almost being forcibly taken down this new route, and made to sound like an idiot for even questioning it. As such, and following feedback here I will definitely not be pursuing this.

Post Script:

Also - unless your circumstances have shifted - you need to ask why this solution wasn't presented to you considerably before the firm change, yet "inexplicably" is the answer today. If it is suitable now and nothing has changed why didn't you get this 1/3/5/10 years ago, eh?

[giger]

K12beano said:

Post Script:

Also - unless your circumstances have shifted - you need to ask why this solution wasn't presented to you considerably before the firm change, yet "inexplicably" is the answer today. If it is suitable now and nothing has changed why didn't you get this 1/3/5/10 years ago, eh?

The answer being that they didn't have such a marvellous, no brainer, one size fits all system available to them a few years ago!

[K12beano]

giger said:

K12beano said:

Post Script:

Also - unless your circumstances have shifted - you need to ask why this solution wasn't presented to you considerably before the firm change, yet "inexplicably" is the answer today. If it is suitable now and nothing has changed why didn't you get this 1/3/5/10 years ago, eh?

The answer being that they didn't have such a marvellous, no brainer, one size fits all system available to them a few years ago!

Ah! But of course they could.

Just because they didn't have one "in-house" shouldn't have been a bar to them finding a provider if it suits your needs.


I'll get off my now, it makes me somewhere between tetchy and infuriated on the cross scale, as you might tell!!!

[ellanvannin52]

giger said:

My IFA is now part of AFH Wealth Management - a midlands based conglomerate that seems to take on IFA and FA firms.

I have a pension with Aegon that has performed quite well over the past 6 years but hasn't been touched since set up. Called up my IFA to review some of the funds and he is now try to upsell the AFH discretionary managed fund saying it will give much better returns and it is a waste of my money paying him to review my existing Aegon pension funds (which I can self-manage via the Aegon portal).

I do not put any new money in to my Aegon pension and have seen growth of about 10% in the past year.

Cost to me to transfer to the discretionary managed fund is 4% of my pot (no direct fee to IFA) and on-going 1% fund cost (in addition to any specific fund fees).

I have used my IFA for years, though more recently my folks have fallen out with him due to some investment advice that they didn't feel was right.

Issue I have is I don't know whether to stick with my Aegon pension and self-manage, pay for his fund advice, or move to the new discretionary fund and buy in to my IFA's hype.

I understand how discretionary funds work (or at least I think I do), but how do I decide if it is a good move? In theory it removes my need to have any formal pension review if I trust the discretionary fund works as it should and I can just put my feet up and watch my pot grow. Do they really work like that?

Sorry Giger, but who are you saying you paid the 4% to? Was it to the Aegon pension people or AFH, as you say "(no direct fee to IFA)". We've just had a meeting with one of their guys today and have heard all about the discretionary managed fund and their all singing, all dancing system. Have they kept you up to date with what has been going on with your fund and any commissions paid etc.?