Transferring your Retirement Annuity to another FSP?

Normally there is a charge, its called a Section 14 transfer- one fund to another. Could be quite a significant amount. Only way to know for sure is to ask for a quote. Be careful of new company/broker promising that they will make up the difference.

Also ask yourself why you want to do this? Is your current RA not performing to your expectations? If so a simple re-assessment of your risk profile and moving into funds that match it, or just simply re-looking at your portfolio will achieve the same results without the loss from transferring.

Generally it is probably a very bad idea to move.
 
Depending on how long you have had your RA running you have probably paid most of the fees. There would just be the annual admin fees and fund managers fees. If you think Alan Gray is performing better then look at available funds in the OM structure and see if you are able to switch to Alan Gray funds, or Coronation or whatever. Sound to me like your problem is current funds choice.

Also you may have been a cautious or conservative investor and thus been in a cautious or conservative portfolio. Now you see the aggressive funds are performing 'better' and want to jump. Nothing wrong with that if you are indeed now a more aggressive investor. Just do not confuse performance with risk.
 
Freshy-ZN said:
Depending on how long you have had your RA running you have probably paid most of the fees. There would just be the annual admin fees and fund managers fees. If you think Alan Gray is performing better then look at available funds in the OM structure and see if you are able to switch to Alan Gray funds, or Coronation or whatever. Sound to me like your problem is current funds choice.

Also you may have been a cautious or conservative investor and thus been in a cautious or conservative portfolio. Now you see the aggressive funds are performing 'better' and want to jump. Nothing wrong with that if you are indeed now a more aggressive investor. Just do not confuse performance with risk.
Click to expand...

It was done by a broker as a collective deal for employees at the office, so I didn't actually choose the underlying fund(s).

However, from the online portfolio, you are able to switch funds. So looking at the figures, I think that there is no point in losing 10k unnecessarily - I'll switch to a 50% Allan Gray Balanced Fund and 50% Coronation Balanced Plus Fund combination.

I already have a separate Allan Gray RA with funds chosen individually to meet section 28 requirements and wanted to consolidate the two. But at the end of the day I don't want it to negatively affect my investments.
 
I think you have made the best decision however consider that you still have 25 years left to invest and you might want to go a bit more aggressive than balanced funds (which are moderate).
 
Freshy-ZN said:
I think you have made the best decision however consider that you still have 25 years left to invest and you might want to go a bit more aggressive than balanced funds (which are moderate).
Click to expand...

From the Old Mutual side when choosing outside funds they only offer the balanced funds, whereas with the Allan Gray one you can choose your own funds to balance the percentages for section 28 requirements.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X