Cavendish Investment Service

webmasterpolo

Hi

I've done some investigation comparing HL to Cavendish via Cofunds and Cavendish via Fidelity.

Now Cavendish beats HL hands down as for a one of £25 fee for life they will rebate 100% of the trail commission at 0.5%pa.

The choice is more Fidelity or Cofunds.

Looking at both for a selection of funds from my portfolio Fidelity has no initial charges on any, while Cofunds has initial charges on some.

There is the odd fund that isn't on one or the other which is annoying - is there an alternative to these platforms that will also rebate the trail?

Apart from the charges comparison in which Fidelity wins, is there any other criteria I should judge them by?

I'm considering moving my HL portfolio to Fidelity right now to take advantage of the refund in trail.

-Web

le_loup

webmasterpolo wrote: »

is there any other criteria I should judge them by?

Service?
Lots wrong with H-L but ... you rarely come across people criticising their service. Cavendish may be as good or better. Let us know when you change.

talexuser

I changed to Cavendish a while ago. The annual rebate is really worthwhile as far as compounding goes.

The only disadvantage with CoFunds or FundsNetwork is the 0.25% swapping fee which can add up on large investments if you change funds frequently. I've picked reasonable ones so far so don't need to swap that often so regard it as worthwhile so far, if you want to swap often HL might win out.

Service is ok, one problem I had they gave good advice and I got out within the cooling off period with no losses. This was because I tried to reinvest the annual rebate after having got the maximum ISA this year - it went into the fund outside the ISA and thus liable to tax.

So I advise to invest £5 or 600 less than the max ISA amount if you want to reinvest the annual rebates throughout the year. Either that or keep the money till next April, or just stuff it in your back pocket if you invest max ISA amount each year.

dunstonh

The choice is more Fidelity or Cofunds.

Fidelity version is the explicit charged version. Cofunds havent come out with theirs yet. They, like most platforms are waiting for the FSA paper which is expected to ban both the Fidelity and Cofunds model (and HL).

I have stopped using Cofunds and Fidelity in recent years for new business as they are both now looking long in the tooth. The sooner they roll out their new platforms the better.

Fidelity love their paperwork and the way they split up the ISAs by tax year is a right pain.

I would probably pick HL and keep an eye in September for the FSA paper which will decide if the bundled platforms are going to be allowed to continue or not. Then watch how the platforms adapt and make a decision then on where to move to (as HL have no exit fees, it makes them a good temporary home).

jamesd

dunstonh wrote: »

(as HL have no exit fees, it makes them a good temporary home).

True except for the SIPP, which has a £75 fee for a transfer out to a UK scheme, £250 overseas.

webmasterpolo

Thanks for the replies so far everyone.

dunstonh wrote: »

(as HL have no exit fees, it makes them a good temporary home).

Cofunds and Fidelity don't have exit fees either though.

If we are talking a paper in 3 months, and any changes likely to come way after that day, if the £25 Cavendish setup fee is less than the 0.5% trail gained in 3+ months it would be a better option to switch out of HL now would it not?

-Web

dunstonh

If we are talking a paper in 3 months, and any changes likely to come way after that day, if the £25 Cavendish setup fee is less than the 0.5% trail gained in 3+ months it would be a better option to switch out of HL now would it not?

The paper is September and the deadline to implement is Jan 2013. However, a number of platforms have the bones of their new platforms ready to go. They are just waiting for the paper to allow them to adjust around the edges.

Of course, the FSA could do a U turn and not ban the bundled platforms. A u-turn looked increasingly unlikely after The Consumer Panel said they should be banned. However, the unintended consequence of a number of charges then having to have VAT applied to them leading to increased costs has had an impact along and the delay in the paper which would have been in the next month but put back to September means it is too close to call.

Any solution that does not involve exit charges would be suitable. Keep your options flexible and easy to move.

Cofunds, IIRC, do not allow re-registration at the moment. They have to be cash transfers. I cant remember about Fidelity. I need to do a platform investment later today and I will look it up in the research I will be doing for it and post back unless some-one else beats me to it.

Reaper

You might find this thread useful where HL were compared to the others:
https://forums.moneysavingexpert.com/discussion/2721443