Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

Fund Supermarkets
YORKIE
Posted: 13 August 2010 14:15:46(UTC)
#1

Joined: 13/08/2010(UTC)
Posts: 3

I have unit trust ISAs held in Fidelity FundsNetwork.
I was thinking of transferring these ISAs to Hargreaves Lansdown and was told by Fidelity that the funds would have to be sold and the cash transferred to Hargreaves to repurchase. They said this would not affect the ISA status.
This could, of course, cost me if the repurchase price was higher.
Do the FSA or Inland Revenue allow Fund Supermarkets to impose this condition on the transfer of ISAs?
Marilynn
Posted: 13 August 2010 16:14:50(UTC)
#2

Joined: 21/06/2010(UTC)
Posts: 4

I would have a word with Hargreaves Lansdown if I were you. I did have an ISA unit Trust I purchased from Fidelity but moved it to HL's vantage service some years back. Can't recall what happened though it all seemed straightforward.
With Cash ISAs you have to approach who you want it transferred to and they do the rest. I would have thought the same applied here.
Pratul Chatterjee
Posted: 13 August 2010 16:15:06(UTC)
#3

Joined: 02/08/2010(UTC)
Posts: 10

You could ask H-L to do a Bid-to-Bid transfer where your holdings are sold, the proceeds transferred to H-L and they buy back your original holdings at the same price.

I am curious as to why you are leaving one fund supermarket for another. Is your decision based on the selection of funds and/or differences in fees?
Ian Phillips
Posted: 13 August 2010 16:32:09(UTC)
#4

Joined: 10/06/2010(UTC)
Posts: 36

I, too, would speak to H-L, they're very professional and helpful........they want your business and often do "free" transfer deals.
Pat
Posted: 13 August 2010 16:46:09(UTC)
#5

Joined: 27/04/2010(UTC)
Posts: 11

I was naive to believe that to transfer from H-L Vantage to H-L ISA Account was only a Book exercise. In reality, the shares needed to be sold first and there is no escape for charges in selling the shares.

Transfer costs money.
Ira Fishman
Posted: 13 August 2010 16:49:08(UTC)
#6

Joined: 27/03/2007(UTC)
Posts: 1

Indeed, I had to sell an ISA unit trust when transferring from Cofunds to Fidelity's funds supermarket. I do believe that also applies when one wants to leave Fidelity's funds supermarket. Yes, it seems unfairly restrictive, with the obvious aim at discouraging one from leaving either Cofunds or Fidelity. Saying that, you might also come out ahead of the game in a falling market.
JT
Posted: 13 August 2010 16:52:44(UTC)
#7

Joined: 16/11/2009(UTC)
Posts: 16

Ideally In-specie should be available but it looks like it's not due to HMRC rules... not the more reliable source but http://www.theparaplanne...f=6&t=165&p=670 discusses a similar issue.
Boyan
Posted: 13 August 2010 17:01:10(UTC)
#8

Joined: 21/07/2010(UTC)
Posts: 1

The type of transfer where units are not sold and re-purchased is called "re-registraion" and is a "paper transaction" indeed. Many providers offer it and Fidelity FN are happy to move funds onto their platform this way but the last time I looked they were still reluctant to offer the same facility to their existing clients, i.e. to re-register away from Fidelity FN to another provider. You should enquire if they have started doing this, as there was talk that at some point they would have to relent.
Nicky Addis
Posted: 13 August 2010 17:09:11(UTC)
#9

Joined: 13/08/2010(UTC)
Posts: 4

I transferred my unit trusts to Hargreaves Lansdown and it was done without selling the unit trusts. I have been very happy with HL.

My unit trusts were already in an ISA and I don't remember paying any fees.
Peter J
Posted: 13 August 2010 17:11:10(UTC)
#10

Joined: 25/04/2006(UTC)
Posts: 5

If they won't do a re-registration transfer then that is a very good reason to avoid Fidelity FN.

As for Pat's transfer from HL Vantage to ISA: I did a similar thing with Barclays and they did not charge me commission. Barclays have a much lower commission for buying/selling shares than HL. HL are good for unit trusts but should be avoided for shares. I have ISAs and accounts with both HL and Barclays.
3 Pages123Next page
+ Reply to discussion

Markets

Other markets