Ok then - How do I choose a S&S ISA!

SeanW

It has good and bad years, I have money in Norwich Property Trust http://www.trustnet.co.uk/ut/funds/?fund=1453 . The majority of the holdings (70%) are in UK commercial property, with around 20% in UK Property Shares (REITS) and the rest in cash. The aim is to have more direct property, so the risk of the fund should be low to medium rather than high.

I do believe for a while now they have been predicting a slowdown in this area though.

stphnstevey

So it seems the Hargreaves and Lansdown ISA is a favourite with most and I can see why, what with refunding some of the fees. So at least I am progressing by choosing the ISA proviser.

Where do I start with picking the funds though?

I know everyone's situation is different, but I guess I am just looking for a strategy rather than specific funds names

KTF

H&L do their own multi manager funds. If you cant decide then their 'experts' have put together a few portfolios of their own based on risk.

http://www.h-l.co.uk/fund_research/multi_manager_funds.hl

stphnstevey

Do these charge slightly higher charges for H&L managing them?

KTF

The charges are detailed on the specs for each one. I dont think they are any higher than picking them yourself but I could be wrong.

stphnstevey

The total expense is quoted at 2.1% - is this what you would be carged if you picked your own funds?

thumshie

Have a look at some of the other funds(drop downs on the right):
http://www.h-l.co.uk/fund_research/fund_research.hl

For instance the one you quote at 2.1%(I'll assume is actually the following now at 2.03%-click on key features)
http://www.h-l.co.uk/fund_research/security_details/sedol/3028106.hl

The main holding is Artemis European Growth Acc, which if you look at it http://www.h-l.co.uk/fund_research/fund_key_features/sedol/0660084.hl has a total expense of 1.57%. The third on the list http://www.h-l.co.uk/fund_research/fund_key_features/sedol/3086751.hl also has 1.57%

I'd expect you pay slightly more, after all you're paying them to know who to invest, which proportion in and when to move etc..

use the fist link and look at others they vary from 1.5 to 2.5%..

SeanW

As it's a fund of funds, each fund has a management charge that has to be paid by the fund holding them. You are then paying HL a management charge for managing the fund of funds.

This will make the charge higher than if you invested in all the funds yourself.

stphnstevey

The 2.1% was just the first one quoted (and seemed a rough average charge) on their website here:

http://www.h-l.co.uk/fund_research/mmf_charges.hl

They also quote:
'The total expense ratio represents the annual charge of the fund combined with the annual charges on the underlying funds held and any other fees associated with running the fund. The total expense ratios will change over time'

So, by the looks of it the 2% (or so) is made up of two charges
a) The fund charges
b) H+L charge for them to manage those funds

Which seems fair - I pay an extra 1% or so if I don't want spend the time or stress of researching the market.

I presume I can invest in this through an ISA?

thumshie

Yes, if you click on the key features
http://www.h-l.co.uk/fund_research/fund_key_features/sedol/3028106.hl
it says:

h&l wrote:

Available for new investment through:
Vantage ISA
Vantage PEP
Vantage Fund & Share account
Vantage SIPP

Vantage isa info can be found here:
http://www.h-l.co.uk/our_services/isa_what_is.hl