Advice on stocks & shares ISAs?

dunstonh

Smile has a funds supermarket which "provides access to Fidelity Funds Network" .

Just to be wary of this. It may just be a "white label" version of FNW which is fine. However, it only refunds 80% of the initial charge. It is cheaper to go to FNW directly yourself.

Deemy

Paul_Herring wrote:

So how would you go about moving 50% of a S&S ISA (specifically in my case a tracker) out of S&S without removing the ISA wrapper?

You could move it to a different ISA asset class i.e. a cash fund ISA . Or if the rules allow to move it cash within your shares isa as a temp measure.

Though thats one of the reasons why I support self select ISA's which are the ultimate in flexibility.

cheerfulcat

You could move it to a different ISA asset class i.e. a cash fund ISA

You cannot move money from a S&S ISA into a cash ISA and keep the ISA wrapper.

Paul_Herring

(#'s = pound signs; they're missing on my keyboard, and ALT-0163 doesn't do what it should on this editor...)

Deemy wrote:

You could move it to a different ISA asset class i.e. a cash fund ISA . Or if the rules allow to move it cash within your shares isa as a temp measure.

I was under the impression that ISA's, once bought in one class (Cash or S&S) must remain in that same time of fund.

For example if over 3 years you've acquired (for simplicity, and arguements sake) #9000 cash and #12000 S&S, then you cannot 'swap' any of that cash for shares.

Likewise there are certain limits the amount of cash held in a S&S ISA. The only reference I can find for this is http://www.hmrc.gov.uk/leaflets/isa-factsheet.htm

HMRC wrote:

Maxi ISA

A Maxi ISA can include both cash and stocks and shares. However, whichever way your investment is split, it counts as one Maxi ISA. So you can only open one Maxi ISA in each tax year.

The total amount you can invest is £7,000 each tax year (6 April to 5 April). You can invest up to £3,000 of this in the cash element.

.. nothing about previous years' contributions.

I can only assume in the absence of anything authoritive on HMRC's site (I did look!) that there will be similar limits imposed on previous years' contributions - surely you cannot (using the examples above) turn round and convert what your #12000's now worth into cash and still keep it in the ISA? Or vice-versa with the #9000?

.. upon further looking, I turned up http://www.hmrc.gov.uk/isa/transfer-isa.htm (emphasis mine)

HMRC wrote:

ISA cash, savings and investments must always remain in the same component. An investor cannot transfer funds from, say, a cash ISA with one manager to a stocks and shares ISA with another. However, the designation of an ISA as a maxi or mini is only important for transfer of current year subscriptions. So, for example, current year subscriptions to the stocks and shares component of a maxi ISA can only be transferred to the stocks and shares component of another maxi ISA. However, previous years’ subscriptions the stocks and shares component of a maxi ISA can be transferred to a stocks and shares mini ISA or the stocks and shares component of another maxi ISA. Similarly, current year subscriptions to a cash mini ISA can only be transferred to another cash mini ISA. However, previous years’ subscriptions a cash mini ISA can be transferred to the cash component of a maxi ISA or another cash mini ISA.

Not quite clear as mud, but getting there...

schiff

I know my beef about BFS is probably a distraction on here but I can't help myself!

BFS have sold out I discover to an outfit called Premier Asset Management. On the latter's website I find the following:

"As at the end of August 2005 BFS had £248m under management within five investment trusts and £82m under management and administration within their private client business. Under the terms of the deal, Premier Fund Managers Ltd will assume responsibility for the ongoing management of both the BFS investment trusts and private clients. Certain employees of BFS will transfer to Premier and provide continuity of management and the BFS administration centre will continue to operate from its offices in Aylesbury.

Sufficient staff resources to operate the BFS ongoing business will be retained by BFS and the deal strengthens BFS’ financial position. Premier Asset Management will not assume responsibility for BFS past regulatory obligations. (NB My emphasis)

During the 11 months to 31 st August 2005, the assets being acquired as part of this transaction generated gross revenues of £3.29m

Commenting on the transaction Mike O'Shea, Chief Executive of Premier said, "Over the last few years Premier has been establishing a reputation as a dynamic and innovative asset management business. The acquisition of the business of BFS continues this process and takes the Company’s assets under management to £1Bn. We are very pleased to welcome the clients of BFS to Premier and look forward to working with them on an ongoing basis. The integration of the key fund management and administrative personnel into our own highly regarded team, means that we are confident of providing an excellent level of service in both investment management and administration going forward." https://www.bfsinvest.co.uk

So that's it. All done and dusted. BFS has changed its name and ownership -so don't come looking to me chum for compensation!
And Premier don't want to know about BFS's previous misdemeanours - so don't come looking to me either mate for compensation.
Oh to be so powerful - and so free from any guilt feelings and shame.

cheerfulcat

Paul_Herring wrote:

I was under the impression that ISA's, once bought in one class (Cash or S&S) must remain in that same time of fund.

That is correct. I wouldn't pay too much attention to that free " advice " to which you originally responded, btw - it's a load of old cobblers...

lipidicman

cheerfulcat wrote:

That is correct. I wouldn't pay too much attention to that free " advice " to which you originally responded, btw - it's a load of old cobblers...

>>runs for cover<<

be nice!

carnet

jamesebaker wrote:

Investment trusts are one way of doing it but there are a few reasons why I personally wouldn't use them.

You say "Investment trusts" but then go on to denigrate what reads like Unit Trusts/OEICS . These are completely different types of investment.

1. Using an ISA is a great way to avoid charges (taxes) imposed by the government which is great, and then you go and undo all that good work by paying fees to an independent financial advisor.

Only to a discount IFA where you'll pay, typically 0.5% Initial Charge (sometimes less, or even NIL) and 1.25% Annual Charge (after the annual commission rebate). Compare that to buying/selling fees, stamp duty and bid/offer spread payable on shares - especially if, like me, you are an active investor, frequently switching.

2. Over the long term, more than 90% of actively managed funds fail to match the performance of the FTSE.

Not so, the percentage is less than that.

The simplest way to invest in stocks and shares is through a FTSE index tracker fund. Find the one with the lowest charges, with a low tracking error rate and make sure it has been established for a minimum of 5 years.

Might be the simplest, but is it the best ? If I couldn't pick funds that consistently outperform their benchmark indices by a considerable margin I'd give up fund investing tomorrow. Just because most people don't have the experience/time/skill to pick the right funds on a regular basis, do not assume it can't be done.

Fidelity's FTSE 250 tracker is the lowest charging tracker in that index, and Liontrust's Top 100 tracker is the lowest charging FTSE 100 tracker. If you are a complete novice to the FTSE, FTSE 100 is the 100 biggest companies listed on the London Stock Exchange and FTSE 250 is the 250 biggest. There are other less known ones such as the FT30, which is rarely used but at one point was the most important index.

If you must invest in a passive UK tracker fund, you would be wise to choose one which tracks the FTSE All-Share Index which is more broadly based ie less heavily weighted towards just 4/6 sectors and, therefore, relatively less "risky".

Deemy

cheerfulcat wrote:

You cannot move money from a S&S ISA into a cash ISA and keep the ISA wrapper.

I said cash fund isa.. NOT CASH ISA

I.e. ABERDEEN CASH Unit trust

Deemy

cheerfulcat wrote:

That is correct. I wouldn't pay too much attention to that free " advice " to which you originally responded, btw - it's a load of old cobblers...

Its not my fault if you lack the knowledge and skills to know of the existance of Cash fund unit trusts that you can invest in from within stocks and shares ISA



And your CHARGING for advice ! :rotfl:

Perhaps your clients better double check with the 'free' advice