Transfer Stocks ISA

pwhitf

I have a stocks and shares ISA with Invesco Perpetual that contains two funds, high income and global equity. I have been saving into these funds directly without using an IFA for about 10 years.

I still pay 3% on every investment I make (monthly) and also a management charge on top of this. Cavendish online seems to be a way to reduce these charges substantiially. Can I transfer my current funds to their ISA umbrella and also keep paying my monthly investments through them?

Thanks for help

pwhitf

jem16

You can but Hargreaves Lansdown are cheaper than Cavendish.

Initial charge is 0% with both but with HL you also get a 0.25% rebate on AMC.

http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/i/invesco-perpetual-high-income-income

EDIT - forget that. Just looked more closely and 100% trail is rebated with Cavendish so 0.5% as opposed to 0.25%.

Lokolo

Looking at them compared to HL, you save an extra 0.25% in AMC. But you have to pay £25 to open up an ISA.

So depending on how much you put it, HL maybe cheaper (especially shorterm)

Lokolo

jem16 wrote: »

You can but Hargreaves Lansdown are cheaper than Cavendish.

Initial charge is 0% with both but with HL you also get a 0.25% rebate on AMC.

http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/i/invesco-perpetual-high-income-income

Can you explain this bit:

Normal initial charge: 5% Via Cavendish Initial Charge: 0%

Annual management charge: 1.5 Renewable Commission Rebate* 0.5%

On Cavendish's website. I read the 0.5% Rebate as from the AMC, so total AMC would be 1%. Although this was an assumption? Am I completely wrong here?

jem16

Lokolo wrote: »

Can you explain this bit:



On Cavendish's website. I read the 0.5% Rebate as from the AMC, so total AMC would be 1%. Although this was an assumption? Am I completely wrong here?

No I don't think you are wrong. I hadn't noticed the 100% trail commission rebate when I first looked but then looked again when I read your reply.

I edited my post as you were replying.

pwhitf

Thanks for responding.

Can I transfer and keep paying in, I intend this to be a long term investment. Cavendish talk about cofunds and fidelity wrappers, can I use these this tax year as I am already subscribing into the invesco wrapper?

pwhitf

jem16

pwhitf wrote: »

Thanks for responding.

Can I transfer and keep paying in, I intend this to be a long term investment. Cavendish talk about cofunds and fidelity wrappers, can I use these this tax year as I am already subscribing into the invesco wrapper?

pwhitf

Providing you transfer yes.

Lokolo

pwhitf wrote: »

Thanks for responding.

Can I transfer and keep paying in, I intend this to be a long term investment. Cavendish talk about cofunds and fidelity wrappers, can I use these this tax year as I am already subscribing into the invesco wrapper?

pwhitf

You'll have to find out whether they charge to transfer out. I can't find their charges.

But yes you can transfer your ISA, you would need to get your new provider (Cofunds/Fidelity) to do the transfer.

Reaper

I imagine you have already found the page describing how to go about doing the transfer, if not you can find it here:
For CoFunds: http://www.cavendishonline.co.uk/investments/moving-cofunds.php
For Fidelity: http://www.cavendishonline.co.uk/investments/moving-fidelity.php

Loughton_Monkey

pwhitf wrote: »

Thanks for responding.

Can I transfer and keep paying in, I intend this to be a long term investment. Cavendish talk about cofunds and fidelity wrappers, can I use these this tax year as I am already subscribing into the invesco wrapper?

pwhitf

Jem says 'Yes'. I'm not so sure.

The rules are that you can only pay into one ISA in any one tax year. You have (presumably) already paid into Invesco Perpeutal this year and so could not also contribute to Cavendish (or HL).

So you might as well 'fill' the IP one this year (if indeed that's what you do) and make the transfer after next April 6th. If you only partly fill them, one option would be to cease paying (with 3% premium) but save it up and dump it into the new ISA next year.

Lokolo

Loughton_Monkey wrote: »

Jem says 'Yes'. I'm not so sure.

The rules are that you can only pay into one ISA in any one tax year. You have (presumably) already paid into Invesco Perpeutal this year and so could not also contribute to Cavendish (or HL).

So you might as well 'fill' the IP one this year (if indeed that's what you do) and make the transfer after next April 6th. If you only partly fill them, one option would be to cease paying (with 3% premium) but save it up and dump it into the new ISA next year.

The OP is transferring. Therefore the OP can continue to pay more funds in when the transfer is complete.

It's the same with Cash ISAs. If you have an ISA this tax year with Bank A, and transfer to Bank B. You continue your allowance with Bank B.