HL to III

gterr

Husband and I have opened fund and share accounts with III and will be transferring in from HL in specie. Just had a phone call from a gentleman at III welcoming us, checking that we had all the info we needed, asking how we found the website etc. etc., also pointing out the two offers they have for new customers: the £120 of trading credit spread over the first four quarters, plus the £10 per fund cashback for funds transferred in in specie. Very friendly. Boosted my confidence a bit, I must say.

His estimate for the time-frame for transfers: 6 -8 weeks (though no guarantee that this will be maintained if there is a huge deluge of transfer requests HL - III).

Sillychuckie

Also pondering the HL -> III move.
I notice the offer of up to £120 cash from III, but only have 2 funds in my SIPP. They need a minimum of £10 value to qualify for the transfer offer, so I'm thinking of:

- Purchasing the minimum amount of 10 new funds in my HL SIPP (without a b/o spread or any significant dilution levy)
- Transferring it all to II
- Selling the 10, slowly, using my '2 free' trades a quarter.

Any thoughts? Is this bonkers for the sake of the II incentive?
Obviously I want to move anyway, since the HL charges will be nuts - but I'll avoid closing the HL SIPP, keeping a small holding in there to avoid any closure charge.

Am I missing anything?

SC.

gterr

Sillychuckie wrote: »

Also pondering the HL -> III move.
I notice the offer of up to £120 cash from III, but only have 2 funds in my SIPP. They need a minimum of £10 value to qualify for the transfer offer, so I'm thinking of:

- Purchasing the minimum amount of 10 new funds in my HL SIPP (without a b/o spread or any significant dilution levy)
- Transferring it all to II
- Selling the 10, slowly, using my '2 free' trades a month.

Any thoughts? Is this bonkers for the sake of the II incentive?
Obviously I want to move anyway, since the HL charges will be nuts - but I'll avoid closing the HL SIPP, keeping a small holding in there to avoid any closure charge.

Am I missing anything?

SC.

I thought you needed £3000 in each fund to qualify for the transfer offer.

Mattygroves2

sorcerer wrote: »

Remember you can move to a clean class anytime u want, and you can "convert" it, which means you have no CGT to pay. if you close and open a new one it will cost u money and CGT. II rebate the money on no clean funds just like HL.

I can't see anything on the II website offering conversion to clean funds and I don't really want to stay in dirty funds. If anyone can point me in the right direction I'd be grateful.

If my funds end up being "super clean" with HL the difference in cost between them and II dirty is down to 0.24% (0.45% less the 0.10% expected for super clean less 0.11% which is the extra AMC paid for II dirty funds (0.86% - 0.75%)). There is also the extra cost of dealing as I currently drip feed into 3 funds each month which will cost me an extra £280 with II - I know I could get round this by buying one each month but that is extra effort and likely to get forgotten some months.

For me there are too many unknowns to make the decision where to go before HL announce their full package on 1 March. If my assumptions above are right then unless I'm willing to change my buying habits it's marginal whether I'd save with II even with a £220k ISA.

TCA

gterr wrote: »

I thought you needed £3000 in each fund to qualify for the transfer offer.

No. See conditions 2 and 3 below for new customers:

1. The offer is capped to the cash value £120 per customer, regardless of how many different providers are transferred from, and to the value of £120 of additional commission-free trades, per customer
2. Each unique investment line transferred will qualify for a £10 cash incentive up to the maximum of 12 lines regardless of the number of different providers that have been transferred from.
3. A minimum transfer amount of £3,000 of investments is required to qualify for this offer.
4. Each transferred investment must have a minimum value of £10.
5. To qualify for this offer, we will need to receive your transfer forms by 28 February 2014.
6. The cash will be paid to your trading account within 28 days of the transfer being completed.
7. All quarterly credit, including the transfer-offer commission credit, must be used up in the quarter it is added to your account. Any remaining commission credit will be removed from your account at the end of the quarter.
8. The commission credit is applied to your overall account and can be redeemed against any trading fees you incur within your investment, ISA or SIPP account held with us (trading fees are charged at £10 for real-time UK and international trades and £1.50 for regular investments).
9. The commission credit is in addition to the £20 quarterly credit which is applied to your account together with your £20 quarterly account fee.
10. Your account must remain open for twelve months following the transfer to receive the full £120 in commission credit. Accounts which are closed during this time, will lose any outstanding commission credit.
11. A transfer of cash will not count as a transfer for the purpose of this offer.
12. If you transfer out of Interactive Investor within 12 months of receiving the cash payment we reserve the right to deduct that payment prior to the transfer of the account.
13. Interactive Investor reserves the right to amend or withdraw this offer at any time.

Sillychuckie

gterr wrote: »

I thought you needed £3000 in each fund to qualify for the transfer offer.

No - I don't see that.
According to http://www.iii.co.uk/shares/transfer-to-us

3. A minimum transfer amount of £3,000 of investments is required to qualify for this offer.
4. Each transferred investment must have a minimum value of £10.

Presumably #3 is talking about 'TOTAL', whereas #4 is talking about a particular holding.

In total, my transfer will be worth ~ 80k.
But I will have 2 x 40k index trackers, and 10 funds with £40 in (the minimum amount I can do it with, if I set up a regular buy in with HL and cancel after the first purchase).

If I do it now, I'll be able to buy early Feb and then submit transfer request before end of Feb.
Actually, III need to have their forms back by end of feb - so I should probably apply now.

Am I missing anything else?
SC


Edit: I might have just missed the window of setting up a regular contribution into HL in time for it to come out next month, but we'll see.
Their 'help' section implies that it should be done by 21st of previous month.
Grr - I should have thought of this.

As a separate question:
How frequently to III do offers like this £120 (cash) + £120 (trading credit)?
Is it likely to be extended, or return? Have people seen it hundreds of times before, or is it genuinley special?

gterr

Thanks TCA and SillyChuckie. My mistake!

Sillychuckie

Typical that the III transfer form only has space to write down 9 holdings, yet their offer applies up to 12.

http://www.iii.co.uk/sites/default/files/iii_investment_transfer_form_Apr13.pdf

*sigh*

avfc1982

Sillychuckie wrote: »

In total, my transfer will be worth ~ 80k.
But I will have 2 x 40k index trackers, and 10 funds with £40 in (the minimum amount I can do it with, if I set up a regular buy in with HL and cancel after the first purchase).

I'm not sure I see the point in this, you're buiying 10 funds to get £100 on the iii side, but you'll be paying £25 a pop to transfer them from HL to iii (£250).

Admittedly, you'd have to buy them on the iii side (£10 per fund) if you transferred as cash, but aren't you still losing £15 a fund of you buy them on the HL side then transferring?

masonic

Sillychuckie wrote: »

Edit: I might have just missed the window of setting up a regular contribution into HL in time for it to come out next month, but we'll see.
Their 'help' section implies that it should be done by 21st of previous month.
Grr - I should have thought of this.

You can easily split your existing holdings into small portions using a fund switch. However, as avfc1982 points out, you'll lose more money in exit fees than you'll make from the offer. If you think you'll be able to complain and get the exit fees waived, I think you'll struggle if it can be shown the additional holdings were purchased immediately prior to you transferring the account.