Leaving HL

WGPA

Hi guys,

I've got a small-to-moderate sized fund which I hope to continue to grow over the next year. HL is obviously quite expensive at this level so I am looking to move to Cavendish.

Is there any way around the HL £25 exit fee? I only have one fund (VG LS) so I can take it if need be.

Is Cavendish suitably "safe" for my money? As in the company is suitably trustworthy, I appreciate the underlying investment is at risk based on market movements.

Thanks

jimjames

The Cavendish platform is run by Fidelity, one of the largest investment managers in the world and substantially bigger than HL.

The way to avoid the fee is to transfer in cash not units but you will still have the closure fee. Downside is you will be out of the market while the transfer takes place which could go against you or benefit you depending how the market changes.

Depending how much you're adding to the ISA another one to look at is iWeb which until next week charge a flat rate £25 fee rather than the annual 0.45% that HL charge. Not so good if you're investing monthly as they charge £5 per deal too.

Archi_Bald

jimjames wrote: »

The way to avoid the fee is to transfer in cash not units

No longer possible - cash transfers are £25 also now, iSA or non ISA

http://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

http://www.hl.co.uk/investment-services/fund-and-share-account/charges-and-interest-rates

Rollinghome

As JJ has said, other than initially creating the account with Cavendish, all of your dealings are with Fidelity. You won't ever send or transfer money via Cavendish, only directly to Fidelity. Queries with with Fidelity can be via internal message or a freephone number.

A big plus is that there aren't any of the extra fees HL are so fond of and none of those bars at the windows to stop you leaving. (The HL account closure fee is £25+vat = £30 iirc - plus fund and cash transfer fees.) So you you could, for example, plonk a few pounds into a Cavendish/Fidelity non-ISA account to try the service and close the account at no cost if it didn't suit.

iWeb is certainly worth a look with 0.00% platform charge and just a £5 dealing fee. After Monday the current account opening fee rockets from £25 to £200.

jimjames

Archi_Bald wrote: »

No longer possible - cash transfers are £25 also now, iSA or non ISA

http://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

http://www.hl.co.uk/investment-services/fund-and-share-account/charges-and-interest-rates

Whoops, missed that one.

One way to definitely avoid the £25 fee is to withdraw as cash from the ISA not transfer but that's only possible if you have sufficient space inside your ISA to include re-depositing that cash as well as new funds for the year. This is how I've moved some of my remaining funds from HL.

So it really depends on the definition of small to moderate portfolio. With the new £15k limit it is certainly likely to be more viable for some people to withdraw rather than transfer.

Totton

You could switch to Investment Trusts or ETF's with a capped fee of £45 per year in the ISA or £0 if held in the fund & share account.

No_Santander

Can you please tell us a bit more why you think HL is expensive please?

Thanks,

jimjames

No_Santander wrote: »

Can you please tell us a bit more why you think HL is expensive please?

Thanks,

How much maths do you need?

0.45% pa compared to 0.25% elsewhere?

Massive fees if you want leave when other platforms don't charge at all.

masonic

... and if considering shares/ETFs/ITs rather than funds, then the trading fees are double those elsewhere, and it costs up to £45 per year to make use of an ISA wrapper, vs free elsewhere.

They are quite cost effective for a low value SIPP, however.

No_Santander

20 bps on 10k is 20.
even 45 bps compare to 0 is 45 gbp.

assume you get 200k, that is 400 gbp in absolute terms.

But hang on a min, for investment portfolio, daily volatility on MtM might be 0.5% to 1% up and down depends on what you have.

Also, did you compare charges on trading? Do you get discount buying open end fund and discount on yearly management fees?

I think I do need a bit of maths really.

masonic

No_Santander wrote: »

I think I do need a bit of maths really.

At least some of your questions can be answered by plugging your numbers into here.