Buying investment trusts directly

westy22

HL would charge you £25 per line of stock to transfer out in specie.

If you sold at HL it would cost you £11.95 to sell; then transfer free of charge as cash; then it would cost you £5.95 plus 0.5% SDRT to buy again at X-O. That makes a total of £17.90 plus 0.5% SDRT.

Unless they are very small holdings the £25 transfer hit from HL is probably cheaper and you would not be out of the market for long (if at all).

db7

westy22 wrote: »

HL would charge you £25 per line of stock to transfer out in specie.

If you sold at HL it would cost you £11.95 to sell; then transfer free of charge as cash; then it would cost you £5.95 plus 0.5% SDRT to buy again at X-O. That makes a total of £17.90 plus 0.5% SDRT.

Unless they are very small holdings the £25 transfer hit from HL is probably cheaper and you would not be out of the market for long (if at all).

They've replied saying as it's staying outside an ISA wrapper they wouldn't need to sell the shares so there wouldn't be any charges. Seems too good to be true!

kidmugsy

westy22 wrote: »

Not sure that I agree with that. The closer the share price is to the NAV the narrower the discount. Therefore if we assume that the NAV stays the same then selling shares at a higher price reduces the discount.

Fair point. I still think the basic conjecture was bonkers though: see jimjames's most recent remark. I don't mind a spot of cynicism, but cynicism that makes no sense is just …. have I already said bonkers?

westy22

They've replied saying as it's staying outside an ISA wrapper they wouldn't need to sell the shares so there wouldn't be any charges. Seems too good to be true!

Who is 'they'? If it's X-O then, as the receiving broker, there would be no charges - your charges are going to come from HL who are the ceding brokers.

db7

westy22 wrote: »

Who is 'they'? If it's X-O then, as the receiving broker, there would be no charges - your charges are going to come from HL who are the ceding brokers.

Yes, X-O. So does that mean HL will charge me £11.95 for each stock I'm moving?

westy22

db7 wrote: »

Yes, X-O. So does that mean HL will charge me £11.95 for each stock I'm moving?

No, they will charge you £25 for each stock you are moving!

Look under Sundry Charges on this link http://www.hl.co.uk/investment-services/fund-and-share-account/charges-and-interest-rates

db7

westy22 wrote: »

No, they will charge you £25 for each stock you are moving!

Look under Sundry Charges on this link http://www.hl.co.uk/investment-services/fund-and-share-account/charges-and-interest-rates

Blimey, they've got us over a barrel haven't they. Hardly seems fair that they introduce an annual fee and don't give us a chance to transfer out for a reasonable fee.

Glen_Clark

westy22 wrote: »

HL would charge you £25 per line of stock to transfer out in specie.

If you sold at HL it would cost you £11.95 to sell; then transfer free of charge as cash; then it would cost you £5.95 plus 0.5% SDRT to buy again at X-O. That makes a total of £17.90 plus 0.5% SDRT.

Unless they are very small holdings the £25 transfer hit from HL is probably cheaper and you would not be out of the market for long (if at all).

Selling and re purchasing would cost more than that because of the broker's spread - the difference between buying and selling price.
I intend holding for the long term, so if I held Investment Trusts with HL I would cut my losses, stump up the £25 to get free of HL and hold them as certificates. No need to put them into X-O until you are ready to sell. Holding certificates incurs no charges, and when you come to sell you are free to chose the cheapest broker.

westy22

stump up the £25 to get free of HL and hold them as certificates

How would you actually go about that in practice? The £25 per stock transfer out from HL I understand, but where would you transfer to in order to convert the holding to certificates?

grey_gym_sock

you'd ask HL to convert your shares into certificated form and send them to you.

unlike a transfer to another broker, in which you send your instructions to the broker you want to move to.