Interactive investor charges (and GRR to H&L)

fimonkey

I am in the process of transferring my S&S ISA from H&L to ii

(Grr to H&L who decided to charge £2 per month for holding my HSBC all shares tracker, L&G all shares tracker, and L&G emerging markets tracker which would have cost me £6 per month on an investment of just £1000. The gits then went and charged me £90 for transferring out!!! £25 plus VAT for each fund apparently - ah well the reason I am 'investing' in such small amounts is because I want to learn - lesson well and truly learnt there).

Back to my question however. I have called ii about their charges for holding tracker funds in an ISA but she really didn't have a clue and then referred me to this site http://www.iii.co.uk/investing/isas/charges

Not too useful because I want to use ii's regular investor (where they invest on the 23rd day of each month) to put £100 per month into the HSBS all shares tracker which will then be held in my ISA (can I do this? the girl I spoke to at ii wasn't sure). I also want to add a further £150 per month where I will buy shares - again to be held in my ISA. (so overall I will transfer £250 per month to ii)

I want to know what charges I will incur for this. It costs £1.50 to trade through the regular investor - so will this therefore cost me £3.00 per month?

Trying to be clearer:


1. Can I buy tracker funds through ii regular investment?
2. Do ii charge for holding funds in an ISA?
3. How much do ii charge for selling funds from an ISA?


What do ii charge for selling funds (I want to get rid of my L&G trackers - they were my first mistake when I initially started investing)

Hope that's clear??

Lokolo

The regular investor for £1.50 only applies to shares, not funds. Funds have their own charging structure which will be the same as HLs (minus the tracker fee); initial cost and AMC.

http://www.iii.co.uk/investing/isas/charges

The charges even says "£1.50 for regular investments in UK shares" and then a couple of things on funds about initial and AMC.

1) Yes but I think they are separate regular investment types. 1 for shares, 1 for funds.

2) Not since I last checked.

3) Nothing. Funds have a different charging structure to shares.

You've also been charged loads for transferring out, it may have been better to have sold all your holdings, transferred, then bought back within iii, but little late for that I guess.

fimonkey

Thanks Loloka - I live and I learn (Which is the reason I am doing this. The best lessons in my expeirince are the expensive ones!! I will never again make the same mistake re: transferring out/selling charges etc)

So for buying a fund and holding it in my ISA, and buying it through the regular investment vehicle - what are the charges? (AFAIK H&L didn't charge anything for my £100 per month investment).

I'm clearly not understanding your post above. .. initial charge is what?As I think I understand it, AMC is the annual management charge which is different to the TER, but the TER is the best one to look at because it includes AMC plus other costs - am I right?

So the TER is 0.27%. Are you saying therefore that the charge for buying a fund through ii regular investor will be £1.50 per month plus 0.27% annual charge? If you are saying this, do you know whether this 0.27% is factored into the price when you buy the fund so it is not a seperate charge for which you are billed at a later date? (Or am I utterly confused).

(The link you provided btw is the same one I provided and I couldn't find the information there)

(PS, I have about an hour a week to devote to this 'learning' of mine. It is a slow slow and sometimes painful curve).

Lokolo

There are 2 charging structures, across the investment board with maybe 1 or 2 differences.

Shares have the broker buy and sell trade cost, stamp duty, and sometimes a holding fee (HLs was 0.5%).

As you can see on iii's charging page the regular investment has the buy cost of £1.50.

Funds have an initial cost (which is one the same table but at the bottom) and the AMC (again, at the bottom of the same table, underneath the initial cost). It is the same way HL charge.

Everything you need to know is in that table.

fimonkey

Everything I need to know might be in that table, but I stupidly don't understand!!

Fund dealing charge = average of 1% (anywhere I can find out what the fund dealing charge for HSBC is specifically?). If it is 1% does that mean it will cost me £1 per £100 I invest on top of the £1.50 regular investment charge?

SO overall to invest £100 per month will cost me £2.50 per month (AMC excluded cos I haven't quite got my head round how that will work with 'drip feeding' because it is an 'annual charge' and I am buying 'monthly').

AMC - which is 0.25% but automatically refelcted in the holding. So I am OK withthat.

Understanding these terms might be easy to some - to a newbie who only has the t'internet for advice (and great forums like this) its not too easy to start off with.

fimonkey

Also.... if funds have different charging structure to shares with ii (I'm just about starting to grasp this now) I take it the £1.50 regular investment charge is for SHARES only (looking at that table) and I will be charged £10 for a fund regardless of when I buy it?

BLB53

Are you saying therefore that the charge for buying a fund through ii regular investor will be £1.50 per month plus 0.27% annual charge?

You cannot buy FUNDS via the low cost portfolio builder - it is only for SHARES.

sabretoothtigger

Investment fund he could but not unit trust

BLB53

Investment fund he could but not unit trust

Investment TRUST, yes. Also ETFs - I think HSBC sell etf trackers which could be purchased via the porfolio builder scheme.

premierfella

fimonkey wrote: »

Fund dealing charge = average of 1% (anywhere I can find out what the fund dealing charge for HSBC is specifically?). If it is 1% does that mean it will cost me £1 per £100 I invest on top of the £1.50 regular investment charge?

Look the fund up here to find out what initial charge applies (probably 0% for your HSBC fund):
http://www.iii.co.uk/funds/fundfilter?task=show_fund_search

You are looking for a FundsBuilder within your ISA:
http://www.iii.co.uk/investing/funds/how-invest/funds-builder

And unfortunately you appear to have missed out on the opportunity to get some of those charges refunded by ii:
http://www.iii.co.uk/trading/share-dealing/step-step-guide-transferring-your-investments

As has already been said, the regular investment charge only applies to UK shares - the only charges on the funds would be any initial charge mentioned. Assuming 0% on the HSBC fund, your £100 would thus buy £100 worth of the fund at the prevailing price (the annual management charge, etc is of course incorporated in the fund price).

Daelim

I buy the HSBC FTSE 100 Tracker and the Aberdeen Emerging Market Funds each month with the regular investment setup on iii.

I've never been charged 10 pounds to do this, always the 1.50.