Rebalancing "Locked" Dirty Class Funds

sterlingstash

The way Cavendish explain the charging structure on their website, with the pound sign split between the platform fee, fund manager, broker, rebate etc seems to suggest that the overall cost remains the same before and after. I am trying to keep my funds in the old charging structure but without actually understanding what the cost differences are!
Is there somewhere I can see a simple like for like comparison with the popular trackers eg those that Chopper holds?

abdul56

I too have a similar conundrum as I have invested in HSBC trackers because of their low charges. Moving to the clean fund means increase in these charges.

I was wondering whether holding these HSBC funds directly with HSBC wealth management would avoid paying a platform fee.

HSBC - FTSE All Share
HSBC - Pacific Index
HSBC - Japan Index
HSBC - American Index
HSBC - European Index

As fidelity have some version of these trackers themselves and as they offer them, they dont charge a platform fee on top of the other management charges.

Also I read that Fidelity is to launch four further tracker funds in March Fidelity will launch European excluding UK, Japan, emerging market and Pacific excluding Japan tracker funds following MSCI indices. It already offers UK, global and US passive funds.

westy22

Hooloovoo wrote: »

Good to know!

I'm in the same situation as ChopperST. I'm now "locked" into my MSP and so I can't update it for the new 2014/15 allowance. I'm intending to "top up" the difference using the clean classes and keep the majority of my holdings in the dirty (cheaper!) classes until I'm forced to switch holdings.

Subject to meeting minimum lump-sum funding requirements of course. I might not be able to do it and will just have to open a small cash ISA for the difference, or something.

That is exactly what I intend doing - I don't anticipate there being any problem with making a £240 cash top-up provided it is into a fund I already hold.

sterlingstash

Westy - surely the top up needs to be in a fund you don;t already hold ie a clean version of the desired fund, rather than the dirty funds which your MSP are directed into. In which case, you should be able to choose any clean fund you want, with no tie to your previous fund choices.

westy22

sterlingstash wrote: »

Westy - surely the top up needs to be in a fund you don;t already hold ie a clean version of the desired fund, rather than the dirty funds which your MSP are directed into. In which case, you should be able to choose any clean fund you want, with no tie to your previous fund choices.

Yes, it would have to be into a clean version, but Fidelity stipulate that an initial investment into a new fund that you don't already hold has to be a minimum of £1000, thereafter you can top-up with smaller amounts i.e. £100 or £250

Hooloovoo

westy22 wrote: »

Yes, it would have to be into a clean version, but Fidelity stipulate that an initial investment into a new fund that you don't already hold has to be a minimum of £1000, thereafter you can top-up with smaller amounts i.e. £100 or £250

Tricky for me because all the HSBC trackers have a £250 top-up minimum, and I need to top-up £240.

And in any case, I don't yet own any clean class funds at all so it would be an initial investment. I can't make a £1000 initial investment over and above my "locked" MSP because then I'd be over the ISA limit.

grizzly1911

sterlingstash wrote: »

The way Cavendish explain the charging structure on their website, with the pound sign split between the platform fee, fund manager, broker, rebate etc seems to suggest that the overall cost remains the same before and after. I am trying to keep my funds in the old charging structure but without actually understanding what the cost differences are!
Is there somewhere I can see a simple like for like comparison with the popular trackers eg those that Chopper holds?

I am not on an MSP but have brought several times before and since they mandated clean only funds at Cavendish.

When I was considering either clean/dirty pre mandated switch there was a mix of +/- charging benefits depending on the fund in question. Some were cheaper overall as clean and some were cheaper overall dirty after rebate.

It is my opinion that these win some/lose some (versus old dirty scheme)scenarios will continue now only clean funds are available.

I am sure there may be c.0.1% fund differentials between providers etc but I am happy with the return I achieve and the flexibility Cavendish provide at present. I know some fixed/capped platforms may/would be cheaper, for me and I will reassess periodically.

westy22

Hooloovoo wrote: »

Tricky for me because all the HSBC trackers have a £250 top-up minimum, and I need to top-up £240.

And in any case, I don't yet own any clean class funds at all so it would be an initial investment. I can't make a £1000 initial investment over and above my "locked" MSP because then I'd be over the ISA limit.

I am not sure that a clean class of a fund you already hold counts as a 'new' fund for the purposes of an initial investment. I would have thought that if you already held a dirty class of XYZ Fund then you are already a subscriber to that fund and can therefore top-up into the clean class.

I don't know that for a fact so you would need to clarify with Fidelity.

sterlingstash

grizzly1911 wrote: »

I am sure there may be c.0.1% fund differentials between providers etc but I am happy with the return I achieve and the flexibility Cavendish provide at present. I know some fixed/capped platforms may/would be cheaper, for me and I will reassess periodically.

I agree - Fidelity's commitment to no exit fees means that even if it is not the cheapest, the flexibility of staying put outweighs any small cost savings until my portfolio grows large enough to justify a switch.

Vortigern

Hooloovoo wrote: »

Tricky for me because all the HSBC trackers have a £250 top-up minimum, and I need to top-up £240.

And in any case, I don't yet own any clean class funds at all so it would be an initial investment. I can't make a £1000 initial investment over and above my "locked" MSP because then I'd be over the ISA limit.

Could you drop £240 into Fidelity's "ISA Cash Park" then add a further amount next tax year?