Selectapension cash troubles

JoCHague

Hi all,

We have recently started using Selectapension and I have an area of frustration I can't get round. Perhaps someone can help?

What do you use for cash within portfolios (either proposed or existing) given that there is no cash option on the system?

I have made a bespoke asset and simply called it "cash" (under guidance from Selectapension) but that then means that all the predicted returns and charges are printed as "n/a" in the full report as it can't calculate these within said bespoke fund.

Seems a bit pointless to me that there is an area of a report that doesn't work. Perhaps the assumption is that accounts will be 100% invested in funds?

What are people doing to get round this?

Thanks

Jo

Jamie_Barnes

Using O&M!

We had the same issues i'm afraid. I used to also use the money market sector but i can't remember if that gets around your specific issue.

richardgough

We use SSGA Liquidity Fund. IE0003410440

benjaminfabi

We also switched to O&M although I realise this doesn't help you.

You can use a substitute cash fund like ssga , or blackrock , but these carry charges that impact on the total returns (how much this actually effects the outcome when it is a fraction of the portfolio in a future value that is rounded down to 3sf might result in you simply documenting and accepting the excess charge in this method).

It is nevertheless possible to overcome this to some extent by adjusting the charge at the final screen. However, this is a blunt fix, it would be far easier if the system allowed for true cash to be held in platform pensions at zero charge.

richallum

This is an interesting thread for me as it's got me asking 'why are they doing that?'  I think I might use Selectapension in a different way to you. So, why do you enter funds?  

• is it to get fund performance info?
• Is it to filter out potential new products that don't have the funds you want?
  
• Is it somthing I haven't thought of and really should be?

Look forward to your replies.

benjaminfabi

I agree Richard. We would just calculate the portfolio cost outside of the system and input it as a bespoke fund (I think), which could be carried into any product. 

I think if you create the portfolio in the system it can highlight all the platforms that support it ie if funds are available (assuming it looks through share classes, which I don't think it does and was a reason for us ditching it!). It also gives you performance data, but I would always use a third party for this, like FE. 

JoCHague

No Richard, it's not something that you should be doing (imo) - You don't need the funds to be entered in order to get a correct RIY etc.

For me, it's more a frustration because the function is there (so it should work) - and because Selectapension use the data for tables laid out in the final report. Those tables are defunct without all assets/funds having a return assumption and a charge on them (and they interest me, I want to see if their weighted return matches my own calc).

I suppose selecting funds is useful if you want to know that a certain fund is available before you select a provider, but given the fund selection nowadays, this shouldn't be a barrier put in place by an adviser from the beginning!

I just think if you provide the facility to replicate the holdings within an existing plan, you should be able to actually replicate them!! 

It's so hard to believe that a fundamental aspect would be missed off - I thought I must be missing something myself.

It has no impact on the rest of the report. Just me getting cross over here.

richallum

Thanks @JoCHague  & @benjaminfabi ;