Question
I have invested in two ISA's this financial year (£22,280 x 2) and a SIPP (£32000). All went into the Henderson Cirilium Balanced I Acc, on advise from my IFA. I was a bit alarmed at the costs (ISA .75% on going annual charge in addition to a £564 initial charge!!) I've yet to discover the charges on the SIPP. I have a further £120k to invest next financial year.
I'd like to keep the money spent to date in the Cirilum fund, at this stage, given he's now told me about a further 3% exit charge! Can I move these to another platform (iii / Alliance / R Plan?) where all subsequent charges can be rebated? I can do my own research and intend to move the additional £120k into more ISA's in subsequent financial years.Answer
Henderson Cirillium funds are sold through a company called Intrinsic Financial Services, which is effectively a network of financial advisers. Performance of the balanced fund has actually been quite good to date, but I'm always wary when independent advisers have arrangements like this, as it arguably jeopardises independence.
I would also be concerned that your IFA has recommended putting your (fairly significant amount of) money into a single fund of funds. It smacks of laziness and/or lack of investment expertise.
Since the Henderson Cirilliun Balanced fund invests in a range of other funds, you're paying two sets of annual charges, the 0.75% charged by Henderson and whatever the underlying funds charge - the net result being a 1.24% total annual charge (according to Henderson's prospectus). Add on any annual fees charged by your adviser and fund platform (if used) and it wouldn't surprise me if the total annual cost tops 2%, which is steep.
As for the 3% exit charge, that's very surprising. It doesn't relate to the Henderson fund itself, so I can only assume it's levied by the adviser or investment platform (if used) - either way it's a rip-off!
Because Henderson Cirilliun funds are sold via Intrinsic, they're not available on mainstream direct to public fund platforms (e.g. iii/ATS/rPlan etc), so sadly I think you'll struggle to move the Henderson fund 'as is' elsewhere. In any case, I suspect the 3% exit charge would still apply even if you could since it's levied by the adviser/platform, not Henderson.
Before you do anything else, I'd suggest getting a clear breakdown of how much you're paying and to whom. If the adviser didn't disclose this to you in writing pre-sale then you'll have grounds for complaint - which potentially might help you negotiate getting out without an exit penalty. If the costs were fully disclosed before you invested and the advice appropriate then you're probably stuck, unless you pay the 3% fee.
A timely reminder that it always pays to check exactly how much you'll be charged in total before proceeding with financial advice.
I have invested in two ISA's this financial year (£22,280 x 2) and a SIPP (£32000). All went into the Henderson Cirilium Balanced I Acc, on advise from my IFA. I was a bit alarmed at the costs (ISA .75% on going annual charge in addition to a £564 initial charge!!) I've yet to discover the charges on the SIPP. I have a further £120k to invest next financial year.
I'd like to keep the money spent to date in the Cirilum fund, at this stage, given he's now told me about a further 3% exit charge! Can I move these to another platform (iii / Alliance / R Plan?) where all subsequent charges can be rebated? I can do my own research and intend to move the additional £120k into more ISA's in subsequent financial years.Answer
Henderson Cirillium funds are sold through a company called Intrinsic Financial Services, which is effectively a network of financial advisers. Performance of the balanced fund has actually been quite good to date, but I'm always wary when independent advisers have arrangements like this, as it arguably jeopardises independence.
I would also be concerned that your IFA has recommended putting your (fairly significant amount of) money into a single fund of funds. It smacks of laziness and/or lack of investment expertise.
Since the Henderson Cirilliun Balanced fund invests in a range of other funds, you're paying two sets of annual charges, the 0.75% charged by Henderson and whatever the underlying funds charge - the net result being a 1.24% total annual charge (according to Henderson's prospectus). Add on any annual fees charged by your adviser and fund platform (if used) and it wouldn't surprise me if the total annual cost tops 2%, which is steep.
As for the 3% exit charge, that's very surprising. It doesn't relate to the Henderson fund itself, so I can only assume it's levied by the adviser or investment platform (if used) - either way it's a rip-off!
Because Henderson Cirilliun funds are sold via Intrinsic, they're not available on mainstream direct to public fund platforms (e.g. iii/ATS/rPlan etc), so sadly I think you'll struggle to move the Henderson fund 'as is' elsewhere. In any case, I suspect the 3% exit charge would still apply even if you could since it's levied by the adviser/platform, not Henderson.
Before you do anything else, I'd suggest getting a clear breakdown of how much you're paying and to whom. If the adviser didn't disclose this to you in writing pre-sale then you'll have grounds for complaint - which potentially might help you negotiate getting out without an exit penalty. If the costs were fully disclosed before you invested and the advice appropriate then you're probably stuck, unless you pay the 3% fee.
A timely reminder that it always pays to check exactly how much you'll be charged in total before proceeding with financial advice.
Read this Q and A at http://www.candidmoney.com/askjustin/865/better-deal-on-henderson-cirillium-fund-ive-been-sold
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