New Ireland i Funds v Zurich Prisma

Discussion in 'Pensions' started by Daddy, Feb 19, 2017.

  1. Daddy

    Daddy Frequent Poster

    Anyone any thoughts on which option might be best to take for investment of AMRF and ARF
    approx 63.5k in both. 2% broker charge to set up applies.

    New Ire iFunds3 fmc 1.25% allocation rate 105%
    Zur Prisma3 fmc 1.00% allocation rate 104%

    New Ire iFunds3 fmc 1.00% allocation rate 103%
    Zurich Prisma3 fmc 0.75% allocation rate 103%

    Broker says not much between them in terms of performance so just wondering myself as I think they are both relatively new products but on doing a search I think Zurich have pretty much outperformrd New Ireland for any time period comparison over the last 20 years on pension managed funds.
  2. jpd

    jpd Frequent Poster

    and as we all know, past performance is no guide to future performance
  3. Daddy

    Daddy Frequent Poster

    Yes I know that saying very well.
  4. Conan

    Conan Frequent Poster

    On the basis that it is impossible to predict future returns, I would look at the fmc. Assuming the risk profile of the two funds are similar, then the lowest fmc is best. So if both offer 103% allocation then the Zurich fmc will cost 0.25% less per annum.
    If you compare the first two funds, the extra allocation of 1% (105% v 104%) will be absorbed after 4 years by the 0.25% higher fmc. An AMRF is a long term investment and unless you switch managers every 4 years, the lower fmc will be significant over time.
    SBarrett likes this.
  5. SBarrett

    SBarrett Frequent Poster

    Agree 100% with Conan. You could have these funds for 20 years +. The extra 1% up front will be dwarfed in the amount you will save by a lower AMC over that long a period.

  6. Daddy

    Daddy Frequent Poster

    Thanks Conon and Steven for explaining that.
  7. PFS7979

    PFS7979 Frequent Poster

    aside from the charging structure, check out the underlying fund managers. I funds offers a multi - asset manager approach that should decrease risk/volatility.