iii introducing quarterly £20 charge

I'm no MSE boffin, I have a single shares ISA in III worth around 25k.
Is it worth my while transferring out ? or is the £80 pa. cheaper than fees i'd have elsewhere?

Obviously £80 is more expensive than paying nothing, but are there any other management fee's which I'm not considering?

Cheers!

peetj wrote: »

I'm no MSE boffin, I have a single shares ISA in III worth around 25k.
Is it worth my while transferring out ? or is the £80 pa. cheaper than fees i'd have elsewhere?

Obviously £80 is more expensive than paying nothing, but are there any other management fee's which I'm not considering?

Cheers!

I'm in a similar boat. I've moved to XO.

I joined XO last week. Seems good so far even if the website and trading platform is a bit basic.

What's ironic though is that rather than transfer my shares from iii I just sold them all and have only bought GKP back so far. One of the ones I sold was MXP at 10p so thanks iii as you've saved me about 10 years worth of inactivity fees. :beer:

grey_gym_sock wrote: »

iii now have a document giving the percentage rebates which apply to different funds: http://static1.iii.co.uk/sites/default/files/Fund%20Rebates.pdf

This is very interesting. Some of their rebate percentages seem to be higher than you can get anywhere else (that I know of). Up until now I think it has generally been accepted that the best rebates are available from Alliance Trust Savings and Cavendish. However, based on a quick subjective survey of about 12 funds of interest to me, about three quarters of them would have bigger rebates from iii.

For instance, the following funds all have a rebate of 0.64% from iii compared with 0.5% with Cavendish and Alliance Trust Savings: First State Global Emerging Markets Leaders, Invesco Perpetual Income, Insynergy Odey, JPM Natural Resources, Fidelity South East Asia, Artemis Strategic Assets, Newton Real Return, Black Rock Gold & General (0.74% on this fund).

I am not surprised that iii have better rebates than Cavendish, because we know that FundsNetwork does not rebate platform commission. I am surprised that ATS is often worse as well, because I thought they did rebate platform commission. They say that they rebate all commission (which I took to mean not just trail commission): http://www.alliancetrustsavings.co.uk/i-nvest/charges-and-benefits/

However, in other cases, ATS gives the best rebate, for instance: Aberdeen Asia Pacific 0.87%, Standard Life Global Absolute Return Strategies 0.75%. Baffling.

On a portfolio of £57,000, an extra rebate of 0.14% would be £80, which would offset the iii charges. However, you would also have to take into account dealing charges.

koru wrote: »

I am surprised that ATS is often worse as well, because I thought they did rebate platform commission. They say that they rebate all commission (which I took to mean not just trail commission): http://www.alliancetrustsavings.co.uk/i-nvest/charges-and-benefits/

The Invesco example has come up before as a query on the forums. I'm not sure what the explanation is for ATS appearing not to rebate the platform fee that is included in the quoted 1.5% AMC figure (assuming that the 0.5% quoted rebate is the only rebate and that the platform fee isn't simply negated in another way e.g. via a stripped "RDR-friendly" version of the fund).

Supporting the theory that the platform fee may be being negated in some other way for some fund managers is the following. If ATS were choosing to selectively pocket platform fees from some fund managers (I can't see it explicitly stated on the retail investor site that they rebate 100% of trail and platform fees) then their site documents wouldn't seem to tally, as the 100% trail and platform fee rebate IS explicitly stated on the advisor site where the same 0.5% rebate is quoted in the list of funds (if they were fully rebating platform fees via advisors but pocketing selectively for retail investors, sure the number on the advisor site would be 0.75% rebate for Invesco Perpetual Income given 100% rebate of ALL commission?)
Advisor site documents referenced are:
http://www.alliancetrustsavings.co.uk/adviser/pdf/list-of-funds.pdf?
http://www.alliancetrustsavings.co.uk/adviser/pdf/invest-platform-guide.pdf relevant text on rebates is on page 8

I guess it isn't necessarily beyond the realms of possibility that, as the platform fee is not explicit (i.e. sticking with the Invesco example, still bundled in the AMC - even if ATS were using the "no trail" version), for some reason Invesco Perpetual selectively rebate part of the charge to some platforms and not others (although I can't see any reason why they would do that?).