AJ BELL Revised charges from October

graymanuk

"One of the main attractions of AJ Bell Youinvest is our approach to transparent, fair and simple charges that caters for people at all stages of their investment journey."

If AJ Bell want to raise their charges, then that's up to them and it's up to us as customers to decide if we want to stay with them. However, I wish they would be honest and not try to convince us it's a good thing. If they wanted to be transparent then they could have explicitly stated that the cap on fund charges will be removed and so anyone with sizeable fund holdings will see a very large increase in charges. Also, the new charging structure is more complex than the current one - so much for "simple charges".

Bottom line - if you invest significant amounts in OEICS/unit trusts then you will pay more, potentially a lot more. On the other hand, if you use ETFs / Investment trusts then your total charges will be capped at £100 per year + dealing charges which is a good deal.

banjodog

Currently have approx. £200,000 invested in Invesco Perpetual Monthly income Plus. Is there an equivalent ETF or Investment Trust I can switch too?

ex-pat_scot

banjodog wrote: »

Currently have approx. £200,000 invested in Invesco Perpetual Monthly income Plus. Is there an equivalent ETF or Investment Trust I can switch too?

Vanguard would be the starting point.


VWRL ETF is a world tracker, paying quarterly divis
VHYL ETF is a world high yield portfolio.

bowlhead99

ex-pat_scot wrote: »

banjodog wrote: »

Currently have approx. £200,000 invested in Invesco Perpetual Monthly income Plus. Is there an equivalent ETF or Investment Trust I can switch too?

Vanguard would be the starting point.


VWRL ETF is a world tracker, paying quarterly divis
VHYL ETF is a world high yield portfolio.

As IP Monthly Income Plus is a managed global bond fund it would be totally inappropriate to switch to either of those global equities trackers whose range of returns would be very different.

Government and corporate high yield BONDS can perform very differently to EQUITIES.

Personally I'm not a fan of investing in high yield bonds via tracker ETFs. High yield bonds, which can include what are sometimes called 'junk' bonds due to being non-investment grade, are something I would prefer to be actively selected rather than take all the dross in the index weighted by its size.

Linton

ex-pat_scot wrote: »

Vanguard would be the starting point.


VWRL ETF is a world tracker, paying quarterly divis
VHYL ETF is a world high yield portfolio.

Really? IP Monthly income has a yield of 5.5% which is presumably why the OP invested in that fund. If you want income you are generally better off in managed funds in my opinion.

greenglide

I was worried by this change (increase) but having actually read the details I can live with it as I only use youinvest for IT holdings (current only ISAs but will be dealing account as well) it is £7.50 per quarter.

If you have both an ISA and a dealing account do you pay one £7.50 per quarter or two? HL have their charging caps applied separately dont they? Will youinvest?

coyrls

banjodog wrote: »

Currently have approx. £200,000 invested in Invesco Perpetual Monthly income Plus. Is there an equivalent ETF or Investment Trust I can switch too?

If you've already done your research and this is your preferred fund but AJ Bell's price changes have made it too expensive to hold on their platform, then change platform not fund.

I have a portfolio with an asset allocation and holdings (funds, ETFs and ITs) that I have researched and am happy with. I am not prepared to compromise on my choices because of a change in charging structure and so I will be moving platforms.

coyrls

greenglide wrote: »

I was worried by this change (increase) but having actually read the details I can live with it as I only use youinvest for IT holdings (current only ISAs but will be dealing account as well) it is £7.50 per quarter.

If you have both an ISA and a dealing account do you pay one £7.50 per quarter or two? HL have their charging caps applied separately dont they? Will youinvest?

The current charging cap on funds is applied per account (i.e. separately) and so I assume that will continue to be the case with the new charging cap for ITs, ETFs and shares.

banjodog

Response from YouInvest to my complaints re new SIPP charges :


"We have not taken this decision to change our charges lightly and know that this will affect customers. We believe that these charges are very fair as we have the right to change charges when we believe there has been cross account subsidies (SIPP customers have been offsetting ISA and Dealing Account customers). We have therefore attempted to even out the charging structure. The new fees levied on ISAs and Dealing Accounts are also capped at £30 per annum which is extremely competitive"


.

JasonPr

Interesting response. I wonder if you can use their "SIPP customers have been offsetting ISA and Dealing Account customers" in a complaint against them for raising SIPP fees.