Fidelity direct or via a broker?

simonhgreen

Hi all

For some months now I have been paying into a Fidelity Special Situations account.

I have now heard that it may be cheaper to use a broker such as Chelsea, Hargreaves Landsdown, etc, as the charges may be less than by going to Fidelity directly.

I've had a look on the sites but it's not exactly crystal-clear! It appears that the initial charge may be less but the annual management charge is more, it's difficult to pin down.

Can anyone clear this up for me & if it's right how do I go about transferring/changing?

Thanks guys

lestamunda

i use hargreaves lansdown - i know where i want to invest so pay nil initial and get a kick back on the renewal.

the amc is the same.

EdInvestor

It may also be worth checking the deal available here:

https://www.cavendishonline.co.uk

dunstonh

Can anyone clear this up for me & if it's right how do I go about transferring/changing?

You do not transfer. You need to re-register.

IFAs can do it cheaper than you going direct (they can also be more expensive). Some of the discount IFA firms mentioned on this site do it very cheap.

Not that we can discuss funds here in an advice capacity but you should note that many research firms are have said that its time to stop putting money into Fid Spec/Sits. Especially as the charges have now gone up for new money.

IGG

Do these charges apply in all cases? My IFA has just picked this as one for me to invest in but didn't mention any charges. I'm investing a small lump sum into it through a Skandia multi ISA.

Any information greatly appreciated.

dunstonh

Skandia multi ISA are a reputable fund supermarket. They have some excellent reporting and research tools which cannot be matched by the others.

Their maximum terms are on par with fidelity fundsnetwork and cofunds. Commission discounts are also possible. There is no reason to not use skandia.

carnet

IGG wrote:

Do these charges apply in all cases? My IFA has just picked this as one for me to invest in but didn't mention any charges. I'm investing a small lump sum into it through a Skandia multi ISA.

When funds "soft close" ie discontinue IC discounts to IFA's etc. to discourage new investment, those investors who were already investing on a monthly basis at a discounted rate are usually unaffected by any increased IC. Such was the case recently with Framlington Equity Income.

Lump sum investors normally have to pay the increased charge.

However I'm sure I read a (Citywire ?) article a few weeks ago criticising Fidelity for cherrypicking who it would still allow to offer their SS fund at the current discounted terms - and I'm fairly positive Skandia was one of them .

You do not transfer. You need to re-register.

Think you'll find re-registration is actually a stock transfer (as opposed to a cash transfer where the holdings are sold by the present provider and cash proceeds used by new provider to (re)purchase).

many research firms are have said that its time to stop putting money into Fid Spec/Sits

Also, many, if not most, of the major discount brokers have now removed this fund from their list of recommendations, pending further developments.

carnet

.....and, indeed, even Fidelity's multi-manager team have now stopped further investment in their own firm's Spec. Sits. fund ;

http://www.hargreaveslansdown.co.uk/news/company_news/story1.asp?ncode=17767

dunstonh

Think you'll find re-registration is actually a stock transfer (as opposed to a cash transfer where the holdings are sold by the present provider and cash proceeds used by new provider to (re)purchase).

I dont know the technicalities behind it. However from the cleint point of view, a re-registration is not a sale of assets. You are not out of the market and you do not use up any ISA allowance.

A transfer would be out of market but would not use ISA allowance (if done correctly. Transfer can mean one thing to one person and something different to someone else).

IGG

Thanks very much for the info guys