Typical Annual Management Charges

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dublin66

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I have an executive pension with Zurich and the Annual Management Charge is 1% on most of the funds. Is this AUM set by the broker or by the life company?

If set by the broker is this a typical management charge? The company makes regular monthly contributions c.€500 and then a lump sum in June (the company year end) of c. €25K depending on profits.
 
Did you buy it through a broker and get advice? Are 100% of regular and single contributions invested? Is there a policy fee? Are there early encashment charges?

I think their highest (own/in-house funds) AMC for an EPP was 1.5% and lowest would depend on whether it's a regular/single contribution or the size of contributions.
 
GSheehy said:
Did you buy it through a broker and get advice? Are 100% of regular and single contributions invested? Is there a policy fee? Are there early encashment charges?

I think their highest (own/in-house funds) AMC for an EPP was 1.5% and lowest would depend on whether it's a regular/single contribution or the size of contributions.
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It is an existing single member scheme and any advice would have been limited to the type of scheme. I'm not aware there is a policy fee and I think 100% of both contributions are invested. There is an early encashment charge. The documentation received from Zurich is the standard stuff that is as clear as mud.
 
The one page Policy/Membership Certificate gives you the allocation rate, the AMC and states whether a policy fee and early encashment charges apply to the regular (or single contrbution) plan.

There's no commission disclosure on Executive Pensions but you're paying for the advice you received via the 1% AMC and, whatever that is, it's recovered by the provider by having early exit charges.

For a product that you receive advice on the AMC would (typically) be between 1% & 1.5%. The 'new' Master Trust Executive Pension might also have a contribution charge (via less than 100% allocation becuse there can't be early exit charges on the new ones).


Gerard

www.prsa.ie
 
Thanks Gerard - this is very helpful. No early encashment charges, 100% contribution to purchase units, 1% AMC & no mention of a policy fee.
 
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