Confused about S&S ISA's - probably stupid question..

fimonkey

I have made my first foray into 'investing' by opening up a FTSE all shares tracker with L&G and putting it in an S&S ISA.

I was confused about the blurb I had to answer though. I think it said I couldn't open another ISA with another provider, but I already have another ISA (a cash ISA) with another provider and I've put my maximum years allowance (09/10) in there already (£5100)

Have I therefore contravened ISA rules? I don't intend to invest more than £100pm to my S&S ISA and I opened it with £500.

I also want to invest in an emerging markets fund, I want to add £50pm to this and also keep it in an ISA, - but it looks like I can't choose the fund I want because L&G don't offer it in their list. So does that mean I can't do this?

Thanks in advance, sorry if it sounds confused, I am!

dunstonh

Have I therefore contravened ISA rules? I don't intend to invest more than £100pm to my S&S ISA and I opened it with £500.

They are referring to S&S ISA, not cash ISA.

I also want to invest in an emerging markets fund, I want to add £50pm to this and also keep it in an ISA, - but it looks like I can't choose the fund I want because L&G don't offer it in their list. So does that mean I can't do this?

Not with L&G. You should have chosen an ISA manager that allows your investment options. Typically nowadays that means using a platform/fund supermarket. For example, the blackrock emerging markets tracker would have been available to you on some platforms or Aberdeen emerging markets fund if you went managed.

If you go direct to provider you are limited to their own range.

fimonkey

Thanks Dunstoh,

I went direct as it had the lowest TER.

So how would I go about also investing in the black rock emerging markets tracker and holding this in an S&S ISA too?

- Would I transfer the S&S ISA to a platform/fund supermarket? (What is a platform? and is a fund supermarket a bit like H&L? I saw H&L also charge 0.5% for opening up a new fund which would have put the TER of the FTSE all shares tracker to 1%

Or could I wait until next year then open another S&S ISA (but still keep contributing to the old one with L&G)?

Thanks in advance

dunstonh

I went direct as it had the lowest TER.

It doesnt have the lowest TER. HSBC are lower and Blackrock are lower still.

So how would I go about also investing in the black rock emerging markets tracker and holding this in an S&S ISA too?

...

- Would I transfer the S&S ISA to a platform/fund supermarket? (What is a platform? and is a fund supermarket a bit like H&L? I saw H&L also charge 0.5% for opening up a new fund which would have put the TER of the FTSE all shares tracker to 1%

You would need to transfer your ISA to a platform that offered those funds as well.

A platform is the generic term that covers fund supermarkets and wraps and investment platforms. A fund supermarket is the most common at the moment but they only offer funds. A wrap or full platform will offer direct investments as well as funds. They will all end up as full platforms sooner or later.

Or could I wait until next year then open another S&S ISA (but still keep contributing to the old one with L&G)?

No. You can only contribute to one ISA manager per tax year.

fimonkey

dunstonh wrote: »

It doesnt have the lowest TER. HSBC are lower and Blackrock are lower still..

I meant it was the lowest TER for that particular product which was the L&G UK Index, - from a previous comparison website and advice on here I saw that was a decent to tracker to go for but I see your point with HSBC.

Are Blackrock a platform? If so could I move my L&G tracker to them within an ISA and then begin investing in the black rock emerging markets fund?

Or what platforms offer the L&G UK index AND the black rock emerging markets fund which would enable me to contribute to both in the same year and hold them in an ISA?

Or have I blown it for this year? I only opened the L&G tracker last week so think I can still cancel it, should I do this an start again (and would I loose money if I did, i.e fee;s etc)?

(Geez this is really quite complicated if you don't understand this stuff, - only taken me 3 years to finally take the plunge, then I find I get it wrong!)

thanks for your help).

dunstonh

Are Blackrock a platform? If so could I move my L&G tracker to them within an ISA and then begin investing in the black rock emerging markets fund?

Blackrock are a fund house like Fidelity, Invesco Perpetual, Gartmore etc. They have a range of managed funds and tracker funds.

Or what platforms offer the L&G UK index AND the black rock emerging markets fund which would enable me to contribute to both in the same year and hold them in an ISA?

I dont follow the DIY platforms so don't know who they would be available on.

Or have I blown it for this year? I only opened the L&G tracker last week so think I can still cancel it, should I do this an start again (and would I loose money if I did, i.e fee;s etc)?

If you find a platform that offers the blackrock range then you could transfer the L&G ISA to that one. You dont need to cancel. Once the transfer is complete, the new platform becomes your ISA manager for the year.

only taken me 3 years to finally take the plunge, then I find I get it wrong!

You havent done it wrong. You just just done it in a way that has restricted your choice.

fimonkey

Thanks Dunstoh,..

So I need to find some DIY platforms that will hold both funds..I googled fund platforms and found these : http://www.insightinvestment.com/uk/adviser/doingbusiness/fundplatforms

Are all those 'platforms' available to me seeing as I don't want to get into actively managed funds? I note H&L aren't on that list too, so I take it there are other fund platforms I should be looking for/at? - how do I find them please?

Can anyone save me a few hours research by saying which of these platforms are suitable for both L&G and black rock please, and which ones don;t have hidden charges (such as the 0.5% hidden charge by L&G) for tracker funds?

If it turns out I can't transfer the L&G tracker to a fund platform that also holds black rock, and I really want to hold black rock in an ISA,... Do I stop paying into the L&G ISA at the end of this tax year and open up another S&S ISA for 2010/11 that does take black rock?

Lessons are definitely being learnt here! Thanks again

dunstonh

I cant get past the first page, it keeps cycling back to the accept/decline page. However, I suspect that as the page is aimed at advisers, it will be platforms that are available to IFAs.

cheerfulcat

fimonkey wrote: »

Or what platforms offer the L&G UK index AND the black rock emerging markets fund which would enable me to contribute to both in the same year and hold them in an ISA?

There are plenty of self-select ISA providers which will allow you to hold those and many other funds. Alliance Trust is a reasonably cheap option, Selftrade another.

Or have I blown it for this year? I only opened the L&G tracker last week so think I can still cancel it, should I do this an start again (and would I loose money if I did, i.e fee;s etc)?

No, you haven't blown it. You can transfer the tracker to another ISA provider.

(Geez this is really quite complicated if you don't understand this stuff, - only taken me 3 years to finally take the plunge, then I find I get it wrong!)

thanks for your help).

It's not that complicated, honest! The ISA wrapper and the investment within it are two different things. Some fund houses provide their own wrapper, which in some cases can only hold that fund house's products ( this is the case for L&G, I think ) but they can't stop you transferring the contents within the wrapper to another provider.

If you expand your search from " platform " to " self select ISA " you should get a wider selection.

fimonkey

cheerfulcat wrote: »

Some fund houses provide their own wrapper, which in some cases can only hold that fund house's products ( this is the case for L&G, I think ) but they can't stop you transferring the contents within the wrapper to another provider.

.

Cheers Cheerful,.. so I can transfer the L&G product to another provider - but that provider has to offer that product already? - or I can choose a platform which will hold the black rock, and transfer the L&G ISA anyhow? If the latter is possible then could I continue to pay into it or would it become 'dormant'?

Thanks again

cheerfulcat

Hi, fimonkey,

fimonkey wrote: »

so I can transfer the L&G product to another provider - but that provider has to offer that product already?

That's right.

ETA - I should think that most self-select ISA providers would offer both of those funds.