ii Model Portfolios
Discussion
ii currently offer Model Portfolios with 10 component funds.
Am I right in thinking that the way they charge for these models is through their transaction fees?
i.e. to get in you will pay 9x £7.99 dealing fees (assuming you have one free per month) and thereafter, any changes that the manager proposes will be applied and you will have up to 10x (perhaps unlikely) transactions every quarter when they rebalance it, and/or ad hoc transaction charges when they act within the quarter...
I've yet to find a clear illustration of the typical costs of accessing these models....
Any insights?
Am I right in thinking that the way they charge for these models is through their transaction fees?
i.e. to get in you will pay 9x £7.99 dealing fees (assuming you have one free per month) and thereafter, any changes that the manager proposes will be applied and you will have up to 10x (perhaps unlikely) transactions every quarter when they rebalance it, and/or ad hoc transaction charges when they act within the quarter...
I've yet to find a clear illustration of the typical costs of accessing these models....
Any insights?
A good (short, but very big) question!
Clearly there are folk out there who fervently believe that active management can outperform passive management (after costs, over time) and those that hold this view could probably find a way to prove it (just as easily as those who disagree might find evidence to disprove it).
I'm not taking a view at this point, just curious to know what ii's costs are, and why it is less than transparent (at first glance).
Clearly there are folk out there who fervently believe that active management can outperform passive management (after costs, over time) and those that hold this view could probably find a way to prove it (just as easily as those who disagree might find evidence to disprove it).
I'm not taking a view at this point, just curious to know what ii's costs are, and why it is less than transparent (at first glance).
Mogul said:
A good (short, but very big) question!
Clearly there are folk out there who fervently believe that active management can outperform passive management (after costs, over time) and those that hold this view could probably find a way to prove it (just as easily as those who disagree might find evidence to disprove it).
I'm not taking a view at this point, just curious to know what ii's costs are, and why it is less than transparent (at first glance).
At a glance, it’s cunningly hidden under the “What does this cost?” heading on the guide to model portfolios.Clearly there are folk out there who fervently believe that active management can outperform passive management (after costs, over time) and those that hold this view could probably find a way to prove it (just as easily as those who disagree might find evidence to disprove it).
I'm not taking a view at this point, just curious to know what ii's costs are, and why it is less than transparent (at first glance).
https://www.ii.co.uk/analysis-commentary/your-guid...
ii said:
Interactive investor has three service plans featuring a standing monthly charge and a monthly trading credit. But because interactive investor does not levy any dealing charges for regular investments, in the example above the only charges payable for the regular investor are 0.5% stamp duty on the portfolio’s investment trust holdings.
The lump sum investor would need to have paid a dealing charge of between £3.99 and £7.99 (depending on the service plan) for each of the portfolio’s 10 holdings (plus the 0.5% stamp duty on the investment trust holdings).
The lump sum investor would need to have paid a dealing charge of between £3.99 and £7.99 (depending on the service plan) for each of the portfolio’s 10 holdings (plus the 0.5% stamp duty on the investment trust holdings).
Edited by emicen on Monday 7th March 12:20
Thanks - I guess the bit I missed was you could pay as little as £3.99 per trade if you are on the right plan..
Not sure what you might end up paying per annum (as the number of trades will depend on the quarterly rebalancing etc.) but curious that they don't appear to have the ability to show the historical performance of the models in chart form (calendar year performance in table format here ===> https://www.ii.co.uk/model-portfolios#performance ) and no obvious presentation of the aggregated OCF etc.
I guess that's all there is to it.
If you buy a model, the total cost is whatever the individual funds cost in aggregate, plus your transaction costs, as and when the manager changes the model or rebalances it.
I'm not an ii customer but a family member is so I might ask them to see if the platform offers any other tools to show performance and/or costs in aggregate.
Not sure what you might end up paying per annum (as the number of trades will depend on the quarterly rebalancing etc.) but curious that they don't appear to have the ability to show the historical performance of the models in chart form (calendar year performance in table format here ===> https://www.ii.co.uk/model-portfolios#performance ) and no obvious presentation of the aggregated OCF etc.
I guess that's all there is to it.
If you buy a model, the total cost is whatever the individual funds cost in aggregate, plus your transaction costs, as and when the manager changes the model or rebalances it.
I'm not an ii customer but a family member is so I might ask them to see if the platform offers any other tools to show performance and/or costs in aggregate.
Mogul said:
A good (short, but very big) question!
Clearly there are folk out there who fervently believe that active management can outperform passive management (after costs, over time) and those that hold this view could probably find a way to prove it.
On a superficial level, I'm sure they could provide proof (and this is no doubt sufficient to suck in an adequate amount of business), but nothing I am aware of that holds up to any moderately rigorous analysis.Clearly there are folk out there who fervently believe that active management can outperform passive management (after costs, over time) and those that hold this view could probably find a way to prove it.
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