Vanguard and Royal London enter Irish Pension market

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delta_bravo

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Interested in this. Especially the prospect of doing an avc on vanguard index funds. Potentially a much nicer way of accessing etfs outside of the onerous taxation methods currently in place (if you can wait until retirement for returns)

www.independent.ie

Shake-up for Irish pensions market as two new international firms add competition

The pensions market is set for a shake-up after two big international providers said they plan to launch the first new retirement products in this country for years.
www.independent.ie www.independent.ie
 
Vanguard funds are available from any financial broker who acts for Standard Life. What's new is a version of the Personal Pension with lower charges than would be typically available elsewhere, due to the low costs of Execution-Only distribution. Unfortunately, an AVC outside of your Occupational Pension Scheme must be done using an AVC PRSA product and charges on these are higher than on the Personal Pension product mentioned in this article, as PRSA providers have to register every charging variation with the Pensions Authority.

Reards,

Liam
www.FergA.com
 
Steven Barrett said:
Vanguard are already available through Standard Life. New Ireland have State Street, Zurich have Blackrock and Aviva have L&G. Irish Life do their own thing...badly.
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are irish life a bad choice for avc prsa? I have my prsa with them through cornmarket. it comes directly out of my pay which is handy. I think I am only charged 1%amc and have 100% contributions.
 
1% AMC, and probably other ongoing charges not included in that, are a significant drag on returns.
 
MugsGame said:
I think badly may refer to potential index tracking errors, as Irish Life synthesize their own tracker funds.
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That's my issue with their index funds. They track their own manufactured index, not one of the globally recognised ones. And the tracking error with their own manufactured index is huge and not in a good way. Last few times I looked, they had underperformed it by a considerable amount.
 
Steven Barrett said:
That's my issue with their index funds. They track their own manufactured index, not one of the globally recognised ones. And the tracking error with their own manufactured index is huge and not in a good way. Last few times I looked, they had underperformed it by a considerable amount.
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that's an issue. the problem for me is the belief that I can change from irish life to a other provider. I would like to go with standard life and opt for thr vanguard life cycle strategy as it seems cheaper. the hassle of changing though.. currently my avc gets taken at source
 
Dublin85 said:
that's an issue. the problem for me is the belief that I can change from irish life to a other provider. I would like to go with standard life and opt for thr vanguard life cycle strategy as it seems cheaper. the hassle of changing though.. currently my avc gets taken at source
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Have it deducted from your bank account and have your tax credits adjusted on a monthly basis. The net amount is the same monthly.
 
Steven Barrett said:
That's my issue with their index funds. They track their own manufactured index, not one of the globally recognised ones. And the tracking error with their own manufactured index is huge and not in a good way. Last few times I looked, they had underperformed it by a considerable amount.
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@Steven Barrett- would this be one such fund? Irish Life- Indexed World Equity Fund
 
I remember meeting one of the top Vanguard institutional guys at a conference in Dublin a few years ago when they were “launching” a pension service in Ireland and discussing us already being one of their largest clients in Ireland.

Because we have always bought UCIT funds through an Omnibus account it’s sometimes not clear to a fund manager who is directing the business to them.

But the simple fact remains that we have been buying Vanguard funds for our clients in their Irish pensions for well over a decade at this point.

Because of this, we also purchase their lowest cost institutional plus share class in our pension and ARF portfolios and use their US ETFs in our taxable accounts.

I must update this article I wrote back in 2018

www.linkedin.com

Looking back over the last 10 years

As I celebrated my 10th Wedding Anniversary this month and on the eve of the introduction of the Insurance Distribution Directive, I thought it timely to look back over the last decade and to reflect on where financial planning as a profession has come from and where we are going in Ireland. My own
www.linkedin.com www.linkedin.com
 
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Running Hatter said:
The Irish Independent reported last year that Vanguard and Royal London were entering the Irish pension market (ARF provider) and that this should bring some much needed competition on ARF charges. So far there is no sign of Vanguard (excluding the option with Standard Life) entering the Irish pension market, does anyone know when or if Vanguard are likely to come to the Irish pension market?
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It was misreported by the Independent. Vanguard are not coming here on their own. They are operating through Standard Life.
 
Running Hatter said:
The Irish Independent reported last year that Vanguard and Royal London were entering the Irish pension market (ARF provider) and that this should bring some much needed competition on ARF charges. So far there is no sign of Vanguard (excluding the option with Standard Life) entering the Irish pension market, does anyone know when or if Vanguard are likely to come to the Irish pension market?
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This Indo article was discussed here. Vanguard weren't coming here. A broker was offering the existing Standard Life / Vanguard products on an Execution Only basis with reduced charges.
 
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