puddleduck
Member of DD Central
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Post by puddleduck on Oct 18, 2017 11:46:02 GMT
Hi
I opened a Moneyfarm account a while back due to the fairly decent cashback offer at the time.
Today they sent out a mailshot regarding a fee increase - 0.7% for first 20k, 0.6k for first 100k, 0.5k for up to 500k and 0.4% for anything over.
Now for what is a a 'robo' fund, the fees are starting to feel steep to me, especially as I can get 0.1% tracker funds held within my HL account. More to the point, due to what seemed to be some fairly dubious auto-balancing (under the hood buying and selling) that happened on my account a while back, Moneyfarm for me is now underperforming low cost / passive investment tracker funds, especially given the peaks we have seen lately.
I think a few of us here are with them, and I wondered in the things I am seeing are being reflected more widely?
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Oct 18, 2017 17:18:23 GMT
From what I took from watching my MF portfolio versus tracker funds, they seemed to use some currency hedged ETFs, which wasn't a good bet with the fall in the pound. I would be very interested to see if others are finding they are underperforming standard low cost ETFs and if so what they deduced the possible reasons were. Last time I looked I could not find any open performance data.
Personally I think MoneyFarm is perfect for people starting out with investing, who can only afford to add a small amount each month, and who would make the most of the fee free limit on the first 10/12/20k depending on how you signed up.
I'm not sure what motivates a rise in fees when their passive index ETF competition keeps getting cheaper and cheaper. I read that one low-cost ETF provider has now made up their own index to cut out the licence fees to S&P/FTSE etc. Perhaps MF are deciding to choose their battle on ease-of-use/customer service/workplace pension rather than cost?
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r00lish67
Member of DD Central
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Post by r00lish67 on Oct 18, 2017 17:30:36 GMT
Hi I opened a Moneyfarm account a while back due to the fairly decent cashback offer at the time. Today they sent out a mailshot regarding a fee increase - 0.7% for first 20k, 0.6k for first 100k, 0.5k for up to 500k and 0.4% for anything over. Now for what is a a 'robo' fund, the fees are starting to feel steep to me, especially as I can get 0.1% tracker funds held within my HL account. More to the point, due to what seemed to be some fairly dubious auto-balancing (under the hood buying and selling) that happened on my account a while back, Moneyfarm for me is now underperforming low cost / passive investment tracker funds, especially given the peaks we have seen lately. I think a few of us here are with them, and I wondered in the things I am seeing are being reflected more widely? Hi puddleduck , same here. However did you click on the link? It wasn't well described in the email, but the link is pretty clear in saying that as existing investors we will not be subject to the lower band fee and also that our fee-free limit will be up to £12k. And that applies for 99 years, apparently! Would totally agree with you for new investors though, becomes totally not worth it.
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Post by beeje13 on Oct 18, 2017 17:56:42 GMT
Moneyfarm fees don't include the cost if the underlying etfs!
Very expensive for what it is.
If you don't want to spend time on research to choose your own separate funds, just get something like Vanguard LifeStrategy or Blackrock Consensus.
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Post by wickedxuk on Oct 19, 2017 8:07:10 GMT
I have a small pot with moneyfarm managed (20k) free. I checked with them and they will continue to honour these offers.
I'm actually really pleased with the performance of the portfolio they've built, over the last 12 months it's achieved 10%+ after fees.
With the first 20k managed free I have some scope to keep investing until the fees equal the Vanguard fees (I also hold a basic portfolio on the new Vanguard investor platform from some old cash ISA's I transfered). I'm really impressed with their customer support and in comparison to Nutmeg and other robo investors their fee's remain relatively low.
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Post by beeje13 on Oct 20, 2017 6:39:32 GMT
I have a small pot with moneyfarm managed (20k) free. I checked with them and they will continue to honour these offers. I'm actually really pleased with the performance of the portfolio they've built, over the last 12 months it's achieved 10%+ after fees. With the first 20k managed free I have some scope to keep investing until the fees equal the Vanguard fees (I also hold a basic portfolio on the new Vanguard investor platform from some old cash ISA's I transfered). I'm really impressed with their customer support and in comparison to Nutmeg and other robo investors their fee's remain relatively low. Do you have one of the more cautious investment options? 10% seems a tad low for the past year, most major indexes have beaten that (notably Japan didn't).
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puddleduck
Member of DD Central
Posts: 537
Likes: 489
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Post by puddleduck on Oct 20, 2017 7:47:20 GMT
I have a small pot with moneyfarm managed (20k) free. I checked with them and they will continue to honour these offers. I'm actually really pleased with the performance of the portfolio they've built, over the last 12 months it's achieved 10%+ after fees. With the first 20k managed free I have some scope to keep investing until the fees equal the Vanguard fees (I also hold a basic portfolio on the new Vanguard investor platform from some old cash ISA's I transfered). I'm really impressed with their customer support and in comparison to Nutmeg and other robo investors their fee's remain relatively low. Do you have one of the more cautious investment options? 10% seems a tad low for the past year, most major indexes have beaten that (notably Japan didn't). My holding is underperforming due to I think some fairly dubious looking re-balancing around "Emerging Markets Sovereign Bond local currencies" My portfolio is showing Performance to date + 0.05 % - I do not expect MoneyFarm to do any better than a tracker fund, but I'm surprised it's doing worse over the same period. I am minded to take out anything over 12k and put it into the very low cost Legal and General trackers. The e-mail regarding the fee increases has made me take another look at this platform, and I am not liking what I am seeing currently.
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Post by wickedxuk on Oct 20, 2017 7:57:05 GMT
I have a small pot with moneyfarm managed (20k) free. I checked with them and they will continue to honour these offers. I'm actually really pleased with the performance of the portfolio they've built, over the last 12 months it's achieved 10%+ after fees. With the first 20k managed free I have some scope to keep investing until the fees equal the Vanguard fees (I also hold a basic portfolio on the new Vanguard investor platform from some old cash ISA's I transfered). I'm really impressed with their customer support and in comparison to Nutmeg and other robo investors their fee's remain relatively low. Do you have one of the more cautious investment options? 10% seems a tad low for the past year, most major indexes have beaten that (notably Japan didn't). No i have a high risk 80/20 ish split portfolio. Ive been drip feeding throughout the year though so my return isnt indicative of the pure increase in the asset in a year. Which is why Im dtill happy with the return figures 👍
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Post by beeje13 on Oct 20, 2017 9:37:56 GMT
Do you have one of the more cautious investment options? 10% seems a tad low for the past year, most major indexes have beaten that (notably Japan didn't). No i have a high risk 80/20 ish split portfolio. Ive been drip feeding throughout the year though so my return isnt indicative of the pure increase in the asset in a year. Which is why Im dtill happy with the return figures 👍 Ah, I get you, I do the same with drip feeding/pound-cost averaging.
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Post by wickedxuk on Oct 20, 2017 12:25:34 GMT
I have a small pot with moneyfarm managed (20k) free. I checked with them and they will continue to honour these offers. Wasn't the £20k offer only for the 1st year and then dropping to £10K afterwards? I think it depends which offer you claimed (there was MSE, MTTM and Moneysupermarket and probably others) my latest correspondane confirms I still have 20k managed free.
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