ISA Rules & Fund Platform

Aletank

I have a direct debit set up for the Fundsmith Equity Fund, direct with Fundsmith in a ISA.
If I was to transfer this fund to say Cavendish Online, would I be able to invest in other funds this ISA year ?


Cavendish say there are no charges for transferring in but would I be out of the market for the transfer period ?
Would there be a bid/offer spread price difference when transferring ?


Thanks for you help

innovate

Unless your new ISA provider offers the same funds and can do a transfer "in specie", a transfer would involve the sale of the existing funds, and the transfer of the cash proceeds. Once complete, you can do with the cash as you like.

If the transfer can be done "in specie", you won't be out of the market.

In either case, you might have to pay exit charges, and you should expect the whole process to take quite a while. I have a transfer from HL into Halifax on the go and it's so far taken over 2 months, with an end finally in sight.

If you have deposited new money into your ISA since April 6, you need to wait with any further deposits into your new ISA until the transfer is complete. You also must keep all your current tax year deposits together in the same ISA.

If you have not deposited any new money into your ISA since April 6, you are free to start a new ISA now and deposit up to your allowance into the new ISA. Don't also deposit any new money into your old ISA, as your new money has to be in one ISA.

You can buy any funds available for ISAs in your new ISA, regardless of what funds you have/had in your old ISA.

westy22

Aletank wrote: »

If I was to transfer this fund to say Cavendish Online, would I be able to invest in other funds this ISA year ?


Cavendish say there are no charges for transferring in but would I be out of the market for the transfer period ?
Would there be a bid/offer spread price difference when transferring ?
Thanks for you help

Yes, you would be able to invest in any other funds listed on Fidelity FundsNetwork.

Possibly you would be out of the market for a short while as you probably hold T Class shares with Fundsmith Direct and would have to hold I Class shares with Fidelity so they would need to be converted and there may be a bid/offer spread on that conversion.

AFAIK the ongoing charge is the same whether direct or through Fidelity but you would be also paying an additional 0.25% Service Fee on your entire holding with Fidelity.

Aletank

Thanks for the replies
The reason for this is I'm thinking of investing in the new Fundsmith Emerging Market Investment Trust.
Fundsmith have said they wont offer the ISA wrapper for this fund until the end of 2014. They did say it will be available via a platform/broker.
Maybe I'm best waiting until it's available direct, hoping the fund drops in the first few months also saving me extra fees, bid/offer costs etc

jimjames

I'm not sure that the investment trust will be available with Fidelity inside an ISA along with funds. From what I understand the two are totally separate and cannot be in the same ISA with them as I couldn't put my Fidelity ITs into my ISA.

It can be done with others such as HL but then you're paying more to hold it.

TrustyOven

jimjames wrote: »

I'm not sure that the investment trust will be available with Fidelity inside an ISA along with funds. From what I understand the two are totally separate and cannot be in the same ISA with them as I couldn't put my Fidelity ITs into my ISA.

I think that also applies to holding OEICs and ETFs - Fidelity didnt seem to let you hold them together in the same ISA. Which doesnt impact me (and wont for a long time) but always worth knowing for the future.