Genuine alternative to HL?

kidmugsy

planteria wrote: »

ISA 54k

SIPP 18k

F&S 10k

getting this right, or as right as possible, is potentially very important

A widely-held view is that HL would be good value for a small SIPP like that. Ours are that sort of size; it's unlikely that we'll move them.

People also seem to think that it wouldn't be difficult to beat HL for an ISA of that size.

F&S: I suspect that it depends on what you want to hold. If collective funds, I'd look at Investment Trust "share plans" myself. p44 at
http://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats31Dec2013.pdf

Geoffo_M

Hi, I'm a bit confused, I've about £70k invested in about 20 different Unit Trust funds with HL - from March, does it now mean that there are going to be two prices for exactly the same Unit Trust fund, one with the new 'unbundled' lower % annual fee which will making the overall unit price higher & then again the existing bundled unit price which will be lower? If that is the case, isn't it going to be worth switching all of my unit trusts from 'bundled' to 'unbundled'. Sorry, hope I'm making sense here, any advice greatly appreciated?

Lokolo

Geoffo_M wrote: »

Hi, I'm a bit confused, I've about £70k invested in about 20 different Unit Trust funds with HL - from March, does it now mean that there are going to be two prices for exactly the same Unit Trust fund, one with the new 'unbundled' lower % annual fee which will making the overall unit price higher & then again the existing bundled unit price which will be lower? If that is the case, isn't it going to be worth switching all of my unit trusts from 'bundled' to 'unbundled'. Sorry, hope I'm making sense here, any advice greatly appreciated?

The higher bundled % has rebates which are paid back to you. This could be greater than the difference in cost between the 2 funds.

e.g.

Fund Class A - cost 1.25%, rebate 0.6%
Fund Class B - cost 0.75%,

Class A would cost you less.

But by April 2016 you will be moved onto Class B anyway.

koru

Lokolo wrote: »

The higher bundled % has rebates which are paid back to you. This could be greater than the difference in cost between the 2 funds.

e.g.

Fund Class A - cost 1.25%, rebate 0.6%
Fund Class B - cost 0.75%,

Class A would cost you less.

The rebate is taxable, however, so Class A only costs less if you are below the basic rate tax threshhold. The net AMC of Class A depends on what rate tax you pay:

tax rate 0% net AMC 0.65%
tax rate 20% net AMC 0.77%
tax rate 40% net AMC 0.89%

jimjames

koru wrote: »

The rebate is taxable, however, so Class A only costs less if you are below the basic rate tax threshhold. The net AMC of Class A depends on what rate tax you pay:

tax rate 0% net AMC 0.65%
tax rate 20% net AMC 0.77%
tax rate 40% net AMC 0.89%

It is only taxable outside an ISA

Doshwaster

I have been looking through the changes this morning but it's hard to tell whether I'm a winner or a loser.

With H&L I have a S&S ISA worth approx £12,500 with 9 funds (one of which has the monthly £2 platform charge) and 1 equity (Royal Mail). I add £150/month to 2-3 funds and maybe do a handful of lump sum purchases per year.

planteria

kidmugsy wrote: »

A widely-held view is that HL would be good value for a small SIPP like that. Ours are that sort of size; it's unlikely that we'll move them.

People also seem to think that it wouldn't be difficult to beat HL for an ISA of that size.

F&S: I suspect that it depends on what you want to hold. If collective funds, I'd look at Investment Trust "share plans" myself. p44 at
http://www.theaic.co.uk/sites/default/files/statistics/attachment/AICStats31Dec2013.pdf

thank you, but you say "also" but give a different message for ISA as opposed to SIPP. do you think that my SIPP is likely to be best left with HL and that my ISA is likely be best moved from HL:question:

outside those wrappers i have holdings in 3 companies. plan, at the right time, to sell them and just invest within SIPP and ISA.

colalba

this article has tables showing costs for holdings of different sizes for a number of different platforms.


http://langcatfinancial.co.uk/2014/01/big-bristol-beasts-bring-beat-back-hl-unveils-pricing/

colalba

koru wrote: »

If you sell a fund then buy back the same fund within 30 days, the gain on the sale is the sale proceeds minus what you paid to buy back the same fund (even though you bought after selling). So, you only have a gain if the price falls between selling and repurchasing.

Is this true if as is likely in the current scenario where you are selling a dirty version of the fund and buying back a clean version ? I have a feeling that this counts as a different fund for CGT purposes.


Personally it would really suit me if you are right but have doubts. Does anybody have a definitive answer please.

DeepSporran

colalba wrote: »

Is this true if as is likely in the current scenario where you are selling a dirty version of the fund and buying back a clean version ? I have a feeling that this counts as a different fund for CGT purposes.


Personally it would really suit me if you are right but have doubts. Does anybody have a definitive answer please.

I asked the same question in another thread

https://forums.moneysavingexpert.com/discussion/4829338

dunstonh replied that it would be liable to CGT (see reply #429) unless it was done as a switch or a conversion.