Question
I have some funds invested with Vestra Wealth as their charges appear low, 1% annual fee with commission rebated to client. They also seem to perform well.
As I have further funds to invest, namely my pension pot which is in a SIPP. should I consider another company or go with Vestra who seem to be doing a fair job?
Your thoughts will be appreciated.Answer
Vestra Wealth offers a range of services, both directly and via financial advisers, but it sounds as though you're referring to their investment management service (either discretionary or advisory) and dealing directly with the company.
Sadly although the Vestra website says its fee structure is clear and transparent, it doesn't actually specify what these are - which is a big bugbear of mine.
Based on what you've said you're being charged 1% a year for advice/investment management with no initial charge. In addition to Vestra's charge, you'll also have to pay for the underlying investments and a SIPP wrapper/platform. It's important to find out what these are before going ahead.
I'd guess the underlying annual fund charges (measured by 'total expense ratio' or 'ongoing charge') would be somewhere in the region of 0.7% - 0.9% as this is a fairly typical charge for actively managed funds ('institutional' or 'clean' versions without commission and platform fees built in). If the funds held are trackers then the cost would obviously be lower.
As for the SIPP platform, this could vary widely depending on who Vestra recommends you use, but around 0.25% a year (preferably lower) tends to be the norm.
So I'm guessing your total annual cost will be just over 2%, which is potentially a touch on the high side, but not extortionate depending on the exact service being offered.
The likelihood of good investment performance is also very important, but as Vestra doesn't publish performance figures (that I can find) afraid I can't comment on this.
In summary, if you're happy with Vestra's performance and service to date then I can't see a pressing reason not to use them for your SIPP - just check that any SIPP platform charges are reasonable and make sure there are no other hidden costs.
I have some funds invested with Vestra Wealth as their charges appear low, 1% annual fee with commission rebated to client. They also seem to perform well.
As I have further funds to invest, namely my pension pot which is in a SIPP. should I consider another company or go with Vestra who seem to be doing a fair job?
Your thoughts will be appreciated.Answer
Vestra Wealth offers a range of services, both directly and via financial advisers, but it sounds as though you're referring to their investment management service (either discretionary or advisory) and dealing directly with the company.
Sadly although the Vestra website says its fee structure is clear and transparent, it doesn't actually specify what these are - which is a big bugbear of mine.
Based on what you've said you're being charged 1% a year for advice/investment management with no initial charge. In addition to Vestra's charge, you'll also have to pay for the underlying investments and a SIPP wrapper/platform. It's important to find out what these are before going ahead.
I'd guess the underlying annual fund charges (measured by 'total expense ratio' or 'ongoing charge') would be somewhere in the region of 0.7% - 0.9% as this is a fairly typical charge for actively managed funds ('institutional' or 'clean' versions without commission and platform fees built in). If the funds held are trackers then the cost would obviously be lower.
As for the SIPP platform, this could vary widely depending on who Vestra recommends you use, but around 0.25% a year (preferably lower) tends to be the norm.
So I'm guessing your total annual cost will be just over 2%, which is potentially a touch on the high side, but not extortionate depending on the exact service being offered.
The likelihood of good investment performance is also very important, but as Vestra doesn't publish performance figures (that I can find) afraid I can't comment on this.
In summary, if you're happy with Vestra's performance and service to date then I can't see a pressing reason not to use them for your SIPP - just check that any SIPP platform charges are reasonable and make sure there are no other hidden costs.
Read this Q and A at http://www.candidmoney.com/askjustin/854/vestra-wealth-for-my-sipp
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