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Cavendish, Fundsnetwork and RDR

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Comments

  • jimjames
    jimjames Posts: 18,290 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Aren't a lot of trackers now much cheaper than the HSBC ones? Eg Fidelity's own and the Vanguard trackers they now do. Although the HSBC clean funds are slightly more expensive, I got the impression they were looking a bit on the expensive side - even with rebate.

    I'd be interested in your views. I've just started investing in Fidelity trackers but not yet got round to switching my old HSBC holdings.

    My HSBC UK tracker has a charge of 0.25%. With Cavendish the platform charge is 0.25% so unless the fund manager clean fee is 0% I'm better off sticking with the existing fund.

    With HL it is different as they apply new platform fee to all holdings but Cavendish/Cofunds don't until 2016.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • KDH_2
    KDH_2 Posts: 132 Forumite
    Part of the Furniture Combo Breaker
    jimjames wrote: »
    My HSBC UK tracker has a charge of 0.25%. With Cavendish the platform charge is 0.25% so unless the fund manager clean fee is 0% I'm better off sticking with the existing fund.

    With HL it is different as they apply new platform fee to all holdings but Cavendish/Cofunds don't until 2016.

    According to Cavendish's own post conversion charge table
    ( http://www.cavendishonline.co.uk/index.php/download_file/view/493/288/ )
    - the charge preconversion for HSMC UK tracker is 0.27% with no further platform charges .........post conversion to C Class fund will be 0.42% (inc platform charge of 0.25%) , so a net increase of 0.15%.
    So it seems the more trackers you have it seems worth holding on until the forced conversion in a year or so. Hopefully this will be under the same terms ( ie not out market and no bid /offer spreads).
  • KDH_2
    KDH_2 Posts: 132 Forumite
    Part of the Furniture Combo Breaker
    KDH wrote: »
    According to Cavendish's own post conversion charge table
    ( http://www.cavendishonline.co.uk/index.php/download_file/view/493/288/ )
    - the charge preconversion for HSMC UK tracker is 0.27% with no further platform charges .........post conversion to C Class fund will be 0.42% (inc platform charge of 0.25%) , so a net increase of 0.15%.
    So it seems the more trackers you have it seems worth holding on until the forced conversion in a year or so. Hopefully this will be under the same terms ( ie not out market and no bid /offer spreads).

    Further research on this , shows that if you mostly have Legal & General trackers then these oddly enough become cheaper..................basically because they were pretty expensive under the old system.
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