Old Mutual Cirilium Dynamic Fund

[nikaiyo2]

My IFA has advised switching out of self selected "unit trusts" (I know the old name) and switch into this single managed fund.

Initial charges are 5% +0.75% annual.

Does this seem reasonable?

[WindyCommon]

nikaiyo2 said:

My IFA has advised switching out of self selected "unit trusts" (I know the old name) and switch into this single managed fund.

Initial charges are 5% +0.75% annual.

Does this seem reasonable?

It's a fund of funds.

0.75% annual = yes (although I suspect this isn't the full story ie it doesn't include the fees on the underlying funds - you should ask your IFA specifically about this)
5% initial = no (you might ask your IFA who would be retaining this and what work they'd be doing for it...)

Edited by WindyCommon on Wednesday 18th January 17:16

[FredClogs]

You don't have to pay the 5% there are ways to invest in funds like this much more cost effectively. The ongoing charge is about par for the course but again it's not cheap.

[nikaiyo2]

Is the initial charge negotiable?

I assume my IFA will get a chunk of this charge, tbh I don't object to this as he has done me well over the years, and ongoing fees are a lot lower than my current "fund"

[dodgydave]

He is charging you the absolute maximum he can get away with. Just say that you are going to talk to another IFA because you want to compare costs, and watch the fees come down.

[Jon39]

Lateral thinking.

Sometimes customers of fund companies, would do better by owning shares in the actual firm. Take a look at St. James's Place Plc.

Probably has not happened with Old Mutual though.