Allocation Rates

[pjq]

A relative of mine has money to invest , house sale €300- , looking to invest in a balanced fund , Canada Life New Irl , Irish Life etc . Have been offered 101% allocation , can we negociate for more?
Note: Management fees have been looked at. I've seen the articles on TER on this site, but am struggeling to find concrete info on funds mentioned.

 

[LDFerguson]

A relative of mine has money to invest , house sale €300- , looking to invest in a balanced fund , Canada Life New Irl , Irish Life etc . Have been offered 101% allocation , can we negociate for more?
Note: Management fees have been looked at. I've seen the articles on TER on this site, but am struggeling to find concrete info on funds mentioned.

I take it that your friend is aware that allocation rates of over 100% are usually accompanied by early exit penalties for five years? For that amount, if it's all being placed through the one broker, I reckon you could squeeze another % or so.

 

[North Star]

for investments like this I would focus on the net allocation rate your friend can achieve, as Liam has said there may be some room for negotiation based onthe size of the investment. I would also look at the annual management charges and the relative investment performance of each provider. The choice of asset class will be a strong driver of returns is your friend getting advice/support on this from the person/firm that is offering the 101%?

Regards

 

[marie88]

It is very important for your friend to diversify and not place all the money in one fund, and maybe not even with one company. And I agree with North Star. Annual Management Charge is very important.