My regular premium unit linked Savings Plan with Zurich is currently achieving 7.03% annualised. Thats after accounting for exit tax, levy and charges. Its running since July 2018.
Before accounting for exit tax thats 11.916% annualised. Fingers crossed they reduce the rate before July 2026!
Sure, and I know they have to list on the higher end, however it did start showing the extra built in fees that were dragging on returns. People may have originally assumed the AMC covered the fees while there are also additional transaction fees that the fund has internally that drag on the returns. So it has been a very useful document overall, even without concrete figures.KID's are generic. They represent the worst possible charging structure from the provider. You'd be very unfortunate these days to buy one of those.
I don't know if this means much as an example, without saying which fund it was. Is the poor return down to high fees, poor returns on underlying investment, or both.As a more concreate example, I recently got to see some figures from a 15 year old Quinn fund which ended at a little over 3% EAR
Yeh of course. Was simply a stand alone example which made me go back and review my own pension from the years. It had years of advertising 10%+ gains while not returning anything close to that.I don't know if this means much as an example, without saying which fund it was. Is the poor return down to high fees, poor returns on underlying investment, or both.
From memory one of the funds was an Irish top 20 - they would have been very heavy weight in Irish banks which haven't faired too well over the last 15 years.
Current split is approx:Which Zurich Life fund(s) are you investing in?
The S & P 500 is up from 2900 to 4140 since July 2018 - that's an annualised rise of around 12%
That said, I'd like to see Exit Tax reduced to 33% like CGT and the levy abolished to level the playing field on investing of different types and encourage more people to get off negative-interest deposits.
Should be lower IMHO, as it's not self-assessed and therefore there's less risk of tax evasion.
I think if folk perceived exit tax as 'fair', Government would benefit down the road with more investors in the products and more gains to tax.
In 2007 Life Assurance Single Premiums were €5.4bn - tax was 23%
In 2018 that figure was €1.35bn - tax 41%
Gerard
www.bond.ie
The returns advertised are all gross of fees. It's the norm in the investment industry. There are so many different contracts and charging structures available. For instance, with one insurer, you can have a contract from as cheap as 0.35% up to as expensive as 2% (and if you invest in some of their more exotic funds, you could pay up a total of 2.5%). The charging structure can literally go up in variations of .01%. The KID documents that they issue show the most expensive option. they also include the impact of early exit penalties, which is not relevant to most people as they don't cash in their policy during those years.Yeh of course. Was simply a stand alone example which made me go back and review my own pension from the years. It had years of advertising 10%+ gains while not returning anything close to that.
I'm just really curious about what net returns people have been seeing in relation to the advertised rates. It wasn't intended on being anything close to a discussion around the funds themselves.
As an aside, I do particularly like how Zurich advertise their returns on their calculator, using conservative return figures. Hopefully a case of under promise and over deliver.
That’s not really true Steven.The returns advertised are all gross of fees. It's the norm in the investment industry.
That’s not really true Steven.
Mutual funds always disclose past performance net of costs. In fact, they are legally obliged to do so.
Yes.Are you talking about funds available to Irish investors?
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