Help with financial advisor's recommendation

[victorianlady]

Looking for insights on this proposal our bank manager gave us. For context, we're a 32-year old couple with a child due later in the year.

The total amount to be invested would be around EUR 800,000. We don't have debts and don't currently need the money, but we will likely want to buy a house in about 2 years. Any help is appreciated!

AT0000774484 - Amundi Ethik Fd Evolution (A)

AT000B129242 - 3,24% Wandelschuldverschreibungen

IE00B4L5Y983 - iShares Core MSCI World ETF (T)

IE00B5BMR087 - iShares Core S&P 500 UCITS ETF

LU0425487740 - SISF € Corp Bond (A)

LU0714179727 - JPM GBL DIVID.A (div) EUR (A)

LU1437017350 - Amundi Index MSCI EM MA (T) ETF

LU1479563717 - ALLIANZ THEMATICA (A)

XS2688851299 - GS F.C.INTL 24/28 MTN

 

[janetmal]

@victorianlady This is a complete hodgepodge of a portfolio with horrible fees for most of the products and that doesn't seem to match your goals. What are the allocations to each ETF/fund? Let's look at the fees (as far as I could tell and in the same order your posted them):

AT0000774484: 1.6% yearly.

AT000B129242: 2% entry fee, couldn't tell if there's a yearly fee. These are 10-year bonds it seems, which is not matched to your 2-year horizon, at least for the house purchase.

IE00B4L5Y983: 0.20% yearly, this one's fine.

IE00B5BMR087: 0.07% yearly, also fine.

LU0425487740: 1.03% yearly with an entry fee of 3%.

LU0714179727: 1.50% yearly with an entry fee of 5% and and exit fee of 0.5% (this one's the worst so far).

LU1437017350: 0.20%, this one's fine.

LU1479563717: 1.95% yearly with an entry fee of 5% (JESUS, even worse than LU0714179727).

XS2688851299: This seems to be a standalone corporate bond from Goldman Sachs with maturity in about 4 years. I have no idea what this is doing in your portfolio.

I would stay as far away as I could.

 

[nathanh83]

@janetmal Yes seems that the advisor firstly thought about themselves.

 

[crazysis]

@nathanh83 It's not surprising, people almost always think about themselves first, you always need to do you own research.

 

[crazysis]

@janetmal Excellent addition, only one remark: even if OP would invest into a 2Y duration ETF they could lose money in case of an increasing interest rate environment. The manager doesn't hold anything till maturity (cause the duration is constant 2Y) bur rather roll over the positions technically every day.