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BestInvest select
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All the fund transactions are now complete. The only thing outstanding is a fund switch to the Blackrock property tracker which is still well within the 4 working days window. If I can put a request in for the Blackrock property D class while you're here that would be great, I was told via email that the commission free D class won't ever be available because it requires a lump sum investment of £100K but is that not also true of the Vanguard funds?
I'm relaxed about the pricing anyway, all the purchases tie in with what I've seen listed elsewhere so that isn't an issue and I apologise for giving the impression it is.'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB0 -
Good news about the transactions being complete!
We will where possible try to add funds and shares to the platform if a client requests this but we wont have scope to add in the commission free D Class for the Blackrock Property tracker because the minimum investment and legal and compliant aspects.
Vanguard is slightly different in that if you were to go straight through them, the minimum is £100k however you can access their funds through a small number of platforms, of which we are one, at a lot lower entry levels.“Official Company Representative
I am the official company representative of Bestinvest. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"0 -
Seems like this might a suitable place to invite comment on my experience of the transfer process from CoFunds and FundsNetwork to the BestInvest Select Platform.
Responding to a marketing letter that promised rebates and a straightforward transfer process I gave them authority to move my holdings across back in June. The CoFunds holdings moved seamlessly across in specie. So far so good.
However, turns out that the FundsNetwork holdings were simply sold and the cash placed into my account on the Select Platform. BestInvest were eventually persuaded to make the reinvestments for me: and seemed to believe I should be grateful that they were waiving their normal charges!
After much chasing I finally got hold of enough data to establish that the sale/reinvestment had been subject to bid-offer spread and hence all holdings were reduced in value by several percent. I raised a formal complaint, but have been advised that this is "standard industry practice".
I'm proposing to go further with the complaint, since this recommended transfer process incurred an inevitable and significant loss of value which will take years to recover in rebates. Moreover, I understand that in specie transfer for FundsNetwork holdings will be available shortly. It was objectively wrong advice to embark on the transfer!
I hope that condensed version of a very long saga makes sense and I would welcome comments:
1) if anyone else has had a similar experience?
2) if anyone believes I'm being unreasonable and should let the matter drop?
Thanks in anticipation.
PS - I also had a Virgin Fund which was sold, the cash transfered, and then I was advised it wasn't even possible to hold that fund on the Select Platform....0 -
HL used to irritate me because they seem not to update prices until early the following day but orders can't be placed after 8 am - so a fairly narrow window.
Seems a little strange to me, my fund prices at HL are usually updated a few minutes after midnight each day. That's been my experience for a few years now.0 -
Suffolk_Farthing wrote: »I'm proposing to go further with the complaint, since this recommended transfer process incurred an inevitable and significant loss of value which will take years to recover in rebates. Moreover, I understand that in specie transfer for FundsNetwork holdings will be available shortly. It was objectively wrong advice to embark on the transfer!
If Fundsnetwork doesn't support in specie transfers, how else did you expect the funds to be transferred? I don't know about Fundsnetwork but your assertion that in specie transfers will be available shortly suggests that they are not available now.
Did you really receive advice?0 -
It's only with hindsight that I have any knowledge about things such as in specie transfers. Back in June I was simply responding to a letter from BestInvest proposing that it would be good to move our investments across to their new Platform. Regretably I didn't keep a copy of that letter, but my recollection is that it offered a straightforward transition, which they would manage, and after which we would benefit from the rebates: with a caveat that some funds would be out of the market for a few days, but no mention of any additional costs.
Still seems to me that was a very mis-leading sales pitch: I guess if I pursue the complaint, BestInvest may be able to come up with a copy of the letter.0 -
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In case anyone stumbles across this thread it would appear that after further review BestInvest have had a change of heart and now agree with my perspective. Details under discussion, but hopefully we will reach an amicable resolution.
I'll update further if there are more specifics worth sharing.0 -
However, turns out that the FundsNetwork holdings were simply sold and the cash placed into my account on the Select Platform. BestInvest were eventually persuaded to make the reinvestments for me: and seemed to believe I should be grateful that they were waiving their normal charges!
Fundsnetwork wont do re-registration on assets under £50,000. You have to use cash transfer. Cash transfer works by the existing provider selling the assets to cash and sending the cheque/bank payment to the new provider. You are out of the market for about a week potentially and will suffer a spread if there is one. If the new provider is unbundled, they will place the funds in your cash account and then follow your investment request if you have submitted one (if you havent, it stays in cash). If the new provider is bundled (so no cash fund) then they will buy the funds you told them to buy on your application.I'm proposing to go further with the complaint, since this recommended transfer process incurred an inevitable and significant loss of value which will take years to recover in rebates.
Who recommended it? Bestinvest wont as its not an IFA service. If it was recommended then it would come with the warnings and negatives from the adviser. If you DIY then you make your own decisions. That is the whole point of DIY.PS - I also had a Virgin Fund which was sold, the cash transfered, and then I was advised it wasn't even possible to hold that fund on the Select Platform....
Virgin only do cash transfers as well.2) if anyone believes I'm being unreasonable and should let the matter drop?
I think the problem is that you are going DIY but don't really know what you are doing. There are two transfer methods. One is not always available. FSA is planning to make it mandatory but no timescale is in place yet. It is thought 2014 is likely. You have different types of platform (unbundled - explicitly charged with any commissions rebated and bundled where it is commission based. There are also some hybrid options in this interim stage before unbundled becomes mandatory). When you DIY you do not get advice. You make the decisions. You are responsible for those decisions. That includes the investments you purchase and the method of transfer you use.In case anyone stumbles across this thread it would appear that after further review BestInvest have had a change of heart and now agree with my perspective.
It maybe that its just cheaper and simpler to agree with you, even when you are wrong and give you what you want.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for the comments!
As I say I will update with the outcome - however, I would strongly refute the suggestion that I was "going DIY". I was prompted to make the change by a personalised (sales) letter from BestInvest, advising that with a single signature they would handle the transfer process: it's certianly not something I would have done on my own initiative....0
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