Cavendish v Charles Stanley Direct for funds only portfolio?

janeausten26

All these charges are getting me all confused so would appreciate a second look at my analysis. I'm looking to have a funds-only ISA portfolio which will reach approx £20k at the end of 2014. Given that I'm only interested in funds at the moment, it seems like CSD and Cavendish are the best options at my portfolio size.

Am I right that CSD and Cavendish basically charge the same fees (no fund dealing fees, 0.25% platform fees), except for the following differences?

- CSD platform fees drop to 0.15% when the balance reaches £500k (not an issue here)
- Cavendish has no transfer out fees (may be significant when I move out in the 5 years or so when my portfolio size makes it worthwhile to switch to a flat fee brokerage like iii)
- Cavendish does not offer the Vanguard funds whereas CSD does.

I mentioned that I do not wish to trade shares for my ISA, but of course CSD would provide the option to have shares in my ISA in the future should I wish.

Am I missing something in this comparison? Also is Clubfinance's Fidelity Fundsnetwork basically the same thing as Cavendish's?

Thanks in advance.

le_loup

Don't forget to take into account the ease of use of the web site and the service levels they provide and if they do the funds that you want.
A Trabant will get you to your destination cheaply but it may take longer.

Rollinghome

I think you've covered most points, and yes, neither have fund dealing fees. I use Cavendish, Charles Stanley, and HL (though probably not for much longer).

The details we don't have yet are of the slightly lower cost 'super-clean' funds the platforms have been making much of (but very cagey about giving details of). Fidelity say they've negotiated for a number and HL say they've done the same but we haven't had details of either yet. I seem to remember that Fidelity will give details end of next week but HL won't tell us anything until they introduce the new fees in March. It seems likely that CS/Cofunds may have something similar. Will only be a factor of course if the small percentage of super-clean funds on offer are ones you want to invest in.

Fidelity have made a strong commitment to not having exit penalties like HL so I can't see that changing and are refreshingly free of most extra charges, also in contrast to HL. Charles Stanley charge a fairly reasonable £10 a line to exit. Neither have any of those HL wheezes for boosting their fees such new charges for reinvestment of income etc.

Support is good on both Cavendish and Charles Stanley. With Cavendish you can phone or message Fidelity, or phone or email Cavendish - the couple of times I've emailed Cavendish they've replied within the hour.

The other aspect is how you like the websites. I find both fine. I've used Cavendish for a couple of years so most used to the Fidelity site now but several people have said they prefer CS. If you've a few pennies spare you could test them by investing a thousand outside of a ISA in each to see how you like them, before you transfer in your ISA, and then close the one you don't like without any cost.

The usual object of investing is to maximise your returns and the vehicle most likely to get you to that destination fastest is the one that loses the least to middlemen. HL have messed up my account twice, Cavendish/Fidelity never, Charles Stanley too soon to say. The people most wedded to HL tend to be those who have never used anyone else.

janeausten26

Thanks both for the responses!

talexuser

Been with Cavendish for 3 years now. I messed up my first cashback purchase online and it went outside the ISA. One phone call and it was cancelled and corrected straight away. Recently changed from CoFunds to FundsNetwork, they answered all my queries on the phone ok, and sent updates on the process. No problems at all and the rebates have certainly added up to be worthwhile, just wish I had heard of them earlier when I was just getting 0.25%!

Old_Slaphead

Does CSD have an account closure charge?

Lokolo

Old_Slaphead wrote: »

Does CSD have an account closure charge?

No. Charges to transfer out stocks and funds are £10 each.

antuk

Lokolo wrote: »

No. Charges to transfer out stocks and funds are £10 each.

So i could transfer out as cash for free as long a im willing to be out of the market for a couple of days?

grizzly1911

antuk wrote: »

So i could transfer out as cash for free as long a im willing to be out of the market for a couple of days?

You may find yourself out for 2/3 weeks. Depends on how long your current provider takes to encash, bundle up and remit funds/details to the new provider, then how long they take to set up and purchase.