Alliance Trust concerns

rpc

I have an ISA with HL. I want to seriously rejig my holdings and this includes buying a number of ITs and, within a few years, a few ETFs. I still want to hold OEICs and there isn't really enough in there for me to split across two poviders (one for OEICs and one for ITs/ETFs) yet.

I had decided to move my ISA to Alliance Trust - lower annual fee (£25 vs capped £45 at HL) and better commission rebate on funds. But Alliance Trust have just lost their CEO and their results aren't exactly fantastic. I'm concerned that big changes could be coming and their advantages may evaporate very quickly.

On the other hand, ATS seem to be RDR-compliant whereas big changes will have to be made at HL before that kicks in.

I've also looked at Bestinvest but I would trigger the custody fee there so that's probably more expensive than either ATS or HL for me. However, they look like they are the least likely to have to change come RDR (they could just apply the custody fee to everyone).

My crystal ball is a bit cloudy, anyone got a better one? I guess the ATS model is sound, but the £25 fee may well change to boost their income. They rebate more than HL and don't have additional platform fees - I do want to buy some Vanguard/HSBC trackers but would have to change that plan to avoid platform fees if I stayed with HL.

Am I worrying about nothing?

piglet2

Whilst I hear what you are saying about ATS fees looking best value - along with their rebates - quite attractive, I need to agree with you about the 'risks'.
The parent(alliance trust) are not in great shape, their 2 subsiduaries are losing money - ATS has not made profit for over 7 years now.
They have been increasing/ adding fees on a regular basis for the last couple of years, they charge for many additional activities , they are rudderless as a result of the CEO resigning (what on earth was behind THAT!) and they are buying business by offering ipads, recommend a friend, open an ISA & we wil lgive you vouchers, etc etc. Added to that the fact that half their main board has either resigned or not puttign themselves up for re-election - I would suggest you are right to be concerned.

jimjames

How about Cavendish Online?

You might also want to check all the charges that ATS already levy. I'm looking to move to another provider but the fee to do so with ATS is £50+VAT +investment sale costs. If I withdraw it as cash it is still £10 to do so and I would lose the ISA benefit so they have got you over a barrel.

oldtoolie

Alliance Trust has been around since 1888 so I guess they have had a few CEO's over the years. Their results as an investment trust haven't been the greatest, so buying Alliance shares? -- do your own research. Under pressure from big investors, they are trying to pull up their socks and just increased dividends to share holders.

But their investment platform Alliance Trust Savings isn't the same thing -- it is a separate subsidiary of the trust but your investments are not part of the trust. Their current fees are good for larger accounts. Could they raise fees in the future? Sure but so could any other broker or investment platform.