Basic question... moving funds from HL...
bertpalmer
Posts: 109 Forumite
Hi team
So I have two providers. HL and iWeb.
Roughly 60% of my money is in iWeb and 40% in HL.
I'm considering moving my money out of HL to iWeb because of the cheaper fees.
If I do this presumably the performance of my funds in HL will take a hit? Because I'll be selling and re-buying? Time out of the market and also a loss of dividends?
Is it worth me moving it?
So I have two providers. HL and iWeb.
Roughly 60% of my money is in iWeb and 40% in HL.
I'm considering moving my money out of HL to iWeb because of the cheaper fees.
If I do this presumably the performance of my funds in HL will take a hit? Because I'll be selling and re-buying? Time out of the market and also a loss of dividends?
Is it worth me moving it?
0
Comments
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In the long term it is almost certainly worth moving as you are paying the iWeb fixed fee anyway and HL are expensive but you might want to consider FSCS protection limits.
The only decision is if you want to transfer as cash or in specie. Usually the platforms charge more for an in specie transfer but at least you are not out the market and you save the costs of buying and selling. I recently transferred £120k in cash between pensions and was out the market for about 2 weeks and was able to buy back in at a 2% better price but that was just luck. Do you feel lucky?0 -
If you transfer out as stock from HL it costs £25 per holding, so if you have a lot of funds to transfer it could be quite costly - but its probably still a better way than selling and re-buying.0
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If you transfer out as stock from HL it costs £25 per holding, so if you have a lot of funds to transfer it could be quite costly - but its probably still a better way than selling and re-buying.
1 option is to simplify your portfolio, i.e. reduce it to a smaller number of funds, before moving, to reduce the number of £25 per holding charges. you could even reduce it to 1 fund.
HL don't charge for fund switches, but iweb will charge £5 for each sell/purchase - assuming you do want to complicate your portfolio again after it reaches iweb. (this could be a good opportunity to ask yourself if your portfolio is more complex than it needs to be - i.e. do you need so many funds?)
note that some funds may themselves impose a cost if you sell them and buy them back later on - either via dual pricing; or even for single-priced funds, where the price may be "floated" in such a way that you are likely to lose a little if you sell and later buy back again.0 -
Thank you everyone - this is really useful. I didn't think transferring in specie would be an option but I might look in to this.
I have 5 funds but I could happily make them 2 or 3.0 -
Sort them out while you are still with HL to keep fees low. Make sure the funds you are using will still be available on iWeb otherwise in specie will fail. Remember you will incur costs with iWeb for rebalancing your portfolio periodically so the less holdings in your combined iWeb account the better.
Also consider the fees for any future investments you might make this tax year.
Next tax year consider opening a new ISA elsewhere (ideally somewhere with zero or a low exit charges) so you can contribute at a lower cost than iWeb then transfer it in later.
Alternatively direct your future iWeb contributions each month to rebalance your portfolio to your target fund % allocations toping up the most underweight fund each time to reduce the need to incur costs in rebalance transactions?
Alex0 -
something to watch with unit trusts - check the receiving platform will accommodate the same class as held in HL0
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