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[ PLATFORMS & PENSIONS ]
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PENSION OFFERINGS FOR SAVERS WHO WANT TO DELEGATE
Novice investors
If you are nervous about managing
your own investments, or simply
don’t have the time or can’t be
bothered, there are a range of
alternative providers that can help.
Although most of the platforms
mentioned above provide what are
commonly called model portfolios
– essentially their expert pick of a
range of diversified funds – other
providers have put these offerings
front and centre and these warrant a
closer look.
Pension offerings for
savers who want to delegate
There are other firms entering the
simple investing marketplace and
typically they utilise low-cost ETF-
based portfolios to keep costs down.
Most firms are relatively recent
start-ups, but Vanguard’s pending
entrance into the direct pension
market is significant, given its
success in the US. It now manages
more than $5.6trn worldwide.
Many people invest in Vanguard’s
LifeStrategy funds within their
SIPP through the usual investment
platforms, such as Hargreaves
Lansdown. Now that Vanguard is
offering these directly in a pension
wrapper at just 0.37 per cent, this
could be a game changer – not only
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for investors looking to delegate, but
also for those who want to keep costs
to a minimum.
The other providers in this category
also represent a good choice if you
don’t want to take up too much time
managing your own investments.
They offer clear language,
explanations and interfaces suitable
for the less experienced investor.
Experienced investors
If you’re a fan of Nick Train and
Terry Smith among other superstar
fund managers, you’ll have no
doubt followed the demise of Neil
Woodford and asked yourself
whether they could go the same way.
With more than 3,600 funds to
choose from, it is difficult to keep up
with those that are performing well
at any given point and fund selection
errors are commonplace. I just have to
look at my own portfolio to see that,
Provider Offering Fees
eVestor Three risk-rated portfolios 0.52% p.a.
Nutmeg Three risk-rated strategies
– fixed allocation, fully
managed and socially
responsible c. 0.95% p.a.
PensionBee Seven portfolios, such as a
tracker, ESG, Shariah and a
tailored plan 0.50-0.95% p.a.
Vanguard Own products, including
LifeStrategy portfolios and
Target Retirement funds 0.37% p.a. if invested in the
LifeStrategy portfolios
A platform that helps you analyse the performance of
your holdings and highlights the investments that are
doing well or poorly is extremely helpful
mostly because I pick funds when
they’re doing well but never sell them
when their performance tails off.
Therefore, a platform that helps
you analyse the performance of
your holdings and highlights the
investments that are doing well
or poorly is extremely helpful. In
addition, because you’re saving for
retirement, some kind of planner that
shows potential future growth and
allows you to set targets will help you
get your investment strategy right.
The platforms that provide the
best information tend to be more
expensive. Hargreaves Lansdown
offers a wealth of information
and tools, but it is pricey.
Sometimes, the information you
can glean helps you make inspired
investment decisions that dwarf
the cost of the platform fee, so
you’ll need to take a holistic view
as to your needs.
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