Halifax Investment Funds - Thoughts/Opinions

Coeus

Hi all!

Currently holding a S&S ISA with Halifax with investments in the following funds and proportions:

UK Equity Income Fund - 15.00% (lower risk)
UK Growth Fund - 15.00% (lower risk)
Far Eastern Fund - 25.00% (medium risk)
Fund of Investment Trusts - 25.00% (medium risk)
Smaller Companies Fund - 20.00% (high risk)

To date have generated a 10.2% return over 15m - I think it could generate better returns with other funds.

Does anyone have any thoughts/opinions on how well this is performing and, if possible, suggestions for alternative funds yielding higher returns (must be able to ISA wrap).

Thanks in advance,

Coeus.

dunstonh

It's Halifax. So, without even looking we know the investments will be poor quality and generally at or around the bottom of returns for the respective sectors.

So, pretty much anything else would be better. I'm afraid that bank funds have a reputation of being poor and they rarely fail to live up to that reputation

Coeus

dunstonh wrote: »

It's Halifax. So, without even looking we know the investments will be poor quality and generally at or around the bottom of returns for the respective sectors.

So, pretty much anything else would be better. I'm afraid that bank funds have a reputation of being poor and they rarely fail to live up to that reputation

Thanks for the reply dunstonh. TBO I went with a bank as it seemed easiest to step up a S&S ISA. Who would you recommend as a good provider?

dunstonh

Thanks for the reply dunstonh. TBO I went with a bank as it seemed easiest to step up a S&S ISA. Who would you recommend as a good provider?

You should have gone to an IFA.

I cant recommend a provider as I don't believe there is such a thing as one best option. It depends on what you are after, what features and options you want and how you will buy it. However, if you want to DIY then you could consider Hargreaves Lansdown. If you need advice though then see an IFA.

Coeus

dunstonh wrote: »

You should have gone to an IFA.

I cant recommend a provider as I don't believe there is such a thing as one best option. It depends on what you are after, what features and options you want and how you will buy it. However, if you want to DIY then you could consider Hargreaves Lansdown. If you need advice though then see an IFA.

Thanks for the continuing info - much appreciated!

The features that attracted me to the Halifax S&S ISA was basically (i) I bank with them (ii) Ease of SO to account and monitoring via online banking (iii) fund managed by 'expert' meaning I do not have to research individual funds myself.

I suppose if you could advise the features I would be aiming for is:
- minimal hassle, just a SO per month to the fund
- cheap fees as building on a monthly basis

Perhaps a set portfolio to invest in as a S&S ISA. As you might gather a bit out of my league so just want somewhere to send the money and know it will be well managed with a relatively good return.

Halifax has suited me quite well I just wasn't sure whether there is a better performing alternative with a similar investment process?

dunstonh

The features that attracted me to the Halifax S&S ISA was basically (i) I bank with them (ii) Ease of SO to account and monitoring via online banking (iii) fund managed by 'expert' meaning I do not have to research individual funds myself.

1 - Although the ISA manager for Halifax is at a central location
2 - I didnt realise they inlcluded them with your online banking. However, most providers have internet sites and many of them will blow the Halifax out of the water when it comes to data they give.
3 - They are not experts. Tied agents are usually not allowed to recommend portfolio building. They may give that impression but when you read the documentation it will usually be documented as "you chose". IFAs can portfolio build and are required to research and complete due diligence on the recommended funds.

Halifax has suited me quite well I just wasn't sure whether there is a better performing alternative with a similar investment process?

General rule of thumb in research (meaning there can be exceptions) is that you eliminate passive managed funds and bank funds. So, you will find many funds that have performed better. You don't know the future or what will perform best. Halifax (or any of the other banks) could surprise us and go on a streak that is out of character. However, playing the odds game, you wouldnt bet on it.

Take a look at the HL site, which is a good DIY option for ISAs. If you think that is too complicated then look for an IFA.

terakris

Ive used both Halifax S&S Isa (who i bank with) and HL and i can say that HL is a million times better. The halifax site gives a very, how can i put it... "shielded" view of your ISA so its very much based on picking your risk profile and thats it, where HL will give you much more information about each fund. Its not as easy to go in and pick something based purely on risk, but with a little research it does give you much more control over your investments.... still, ill prob loose all my money over the next 30 years picking my own funds so what do i know lol!

Coeus

Thank you dunstonh and terakris for the support!

Information I can handle, just don't have the time to do the research for picking my own funds to am leaning away from Halifax towards a Hargreaves Lansdown S&S Fund ISA. Bit of background: currently training to be a chartered accountant - thus can easily understand the information but time is taken up with the revision

So I come to two conclusions: A MM fund has both performance and information benefit over bank funds and that either I (a) mimic a leaders picks for S&S ISA to save on MM funds or (b) accept the higher MM fund until time (& experience) allows to pick own funds. I think (a) is the riskier of the two so I am fairly decided to go for a MM fund with Hargreaves Lansdown.

You have commented on my other post dunstonh so if you would be willing to continue to do so (and you terakris) I'll leave this post as it is. Thanks again! Off to post on that one now

JamesU

Coeus wrote: »

am leaning away from Halifax towards a Hargreaves Lansdown S&S Fund ISA

At some point in the future might be worth reading through the link below on transfers from Halifax to HL and potential obstacles and limitations to watch out for.

https://forums.moneysavingexpert.com/discussion/2376521
(especially PAGE 1 onwards)

JamesU

Coeus

Hi all!

Thought I'd drop in an update let you know where I am.

First thanks JamesU for that post - had a good read very insightful which proved very useful in my transfer application.

I have posted today my ISA transfer form to Hargreaves Landsown to transfer my S&S ISA into Hargreaves Lansdown as 100% cash (which Halifax only allows anyway).

Once the funds have been settled I intend to invest 100% of the funds in HL MM Special Situations Fund until (hopefully) the end of Aug 11 where, all being well, I will have finished my work-related professional education and can have the time to research funds independently.

I have rationalised the move to Hargreaves Lansdown based on:
- dunstonh's and others reviews of bank funds (and Halifax in particular)
- saving in the annual management charge (Halifax collectively was 1.47% whereas Hargreaves Lansdown was 1.00%)
- greater choice and flexability with Hargreaves Lansdown
- greater degree on information and control with Hargreaves Lansdown - this should help be gain some experience over the coming months
- to my knowledge risk is spread further with the HL MM Special Situations than the Halifax funds
- other benefits offered by Hargreaves Lansdowns (publications, bonuses etc.)

I will continue to note thoughts/experiences as I go - hopefully will serve someone else in the future

Thanks again for the input and let me know if you have some thoughts!

Coeus.

dunstonh

- saving in the annual management charge (Halifax collectively was 1.47% whereas Hargreaves Lansdown was 1.00%)

One of the things to watch out for Portfolio funds is that they don't have to show many of the extra charges they suffer in the annual management charge. They have to show them in the total expense ration. HL's charge AMC is 1.0% but their TER is 2.11%. Once you start going over 2% then you really have to think about if its worth it (it can be as most portfolio funds are above 2% but you need to look at what you are getting closer). If you are happy to pay that sort of money then you are better off going with the Jupiter Merlin portfolios. Take the worldwide version for example and compare it.

I am not a fan of the HL MM funds as they are cash cows for HL. They are playing on investor inexperience and abusing the AMC/TER spread (HSBC do that with their worldwide portfolios as well) and the funds are nothing special. HL do offer a good DIY platform but you need to be wary of their marketing. They are a distributor and paid to sell funds. They make the most money on their own brand funds.