L&G Stocks&Shares ISA

droopsnoot

bowlhead99 wrote: »

The main reason places like nationwide get away with charging the high fees that they do, is because people are generally lazy and don't bother looking at the details of their investment (e.g. only have it because they forgot to cancel it); or don't do any basic research to realise that they could transfer it to a better one at all, or that maybe they could do that immediately; or don't do any research to even realise that better ones exist (e.g. just use the place that gives them their bank account and assume the price must be the 'going rate').

I think another reason may well be that warm fuzzy feeling that Nationwide are sat there in the High Street and I can go in and sit down and talk to a person, where HL and all the others are not.


But it's something I need to look at, thanks for the breakdown of fund charges, I see that anyone getting involved in the provision of these things is going to want their cut, but it does seem a large chunk goes to IPS. As IPS is being sold to Aegon, and I have beef with them on a trivial matter that I ought to be able to get past but cannot, it might be a nice excuse to move it elsewhere.


My background is very much "unsophisticated investor". I got into these various funds after putting some money into a Nationwide savings account and being offered some advice on how to improve returns and reduce tax as the amount got higher. This dates back to a time prior to it being as clear as it is now that choices offered by banks are limited, and that there are other options. While I do read up in these areas from time to time, it's unlikely that I'm going to formulate much of an investment strategy outside of a range of trackers that hopefully do better than cash savings.

badger09

droopsnoot

The reason transferring a S&S ISA to another provider can be (but isn't always) more hassle than transferring a cash ISA is simple.

Cash is cash, whether its held in a Nationwide/Halifax/Santander etc etc cash ISA, but an S&S ISA is just a wrapper, which can contain a multitude of different investments.

Unless both your new and old S&S ISA providers offer exactly the same investments, a straight transfer isn't possible, so you might need to sell some or all of the assets in the old S&S ISA, arrange for the cash to be transferrred, then buy new investments in the new S&S ISA.

Some providers charge for every investment you transfer, so it could work out much cheaper to simply convert all your investments to cash and avoid/minimise transfer fees. You'd still have buying fees to pay though.

There has always been misunderstanding about ISA rules. Basically, you can open as many as you want but you can only pay new money into one (of each type) at a time.

So, if you're not happy with the investment in your Nationwide S&S ISA, its probably worth deciding what you do want to invest in and find the cheapest platform for your circumstances (lump sum/monthly savings etc), which offers that investment. Open an S&S ISA with them and arrange for them to transfer your Nationwide ISA, converted to cash if appropriate.

I hope that hasn't confused you even further:o

droopsnoot

No, thanks for that. It does make sense that it's based on whether the holdings are available on the other platform. I'll have a look around and see what other platforms are out there and what they offer.

TheShape

Has anyone here got experience of transferring from the Nationwide/L&G IPS platform or to the Charles Stanley Direct platform?

I've looked and cannot find any mention of transfer fees, it also appears that the funds I'm currently invested in (in the first post above) are available through CSD.

Am I right to assume that the transfer will result in me holding the same two funds at (approximately) the same value as before the transfer?

bowlhead99

TheShape wrote: »

Am I right to assume that the transfer will result in me holding the same two funds at (approximately) the same value as before the transfer?

Basically the idea is that the same number of units of the same funds simply turn up, still in your name, on the other platform, having been transferred 'in specie'.

Note that the specific 'class' of units in those unit trusts that you mentioned you hold (class N for the tracker and class R for the Ethical) are not the ones that CSD offers to customers now wishing to put new money in. For example the "R" was originally designed for 'retail' customers with commissions built into it (which these days get quietly rebated by the platform in the background and help you afford your platform fee and any advice fee) while the "I" which appears on CSD's list has a lower 'clean' price avoiding that administrative palaver and is targeted at institutions (although the platform providers can access it because they have bulk buying power).

So, CSD may allow you to transfer in your funds in the old class and hold it on their platform (later having the manager convert the class over for you, or redeem you out of the old one and subscribe to the new one when you're ready); *or* maybe they would say they can't transfer them in specie as they are because they don't offer that class any more full stop, and it will have to be a cash transfer where IPS redeem you out of the holdings and send the cash to CSD.

Presumably you don't want these funds any more anyway, because - although they will now be much cheaper without the Nationwide 0.4% fee - you will use it as an opportunity to select from the much wider pool of funds offered by CSD. Both your existing funds are only invested in the UK stockmarket rather than globally, and you have mentioned moving into a multi asset, multi region fund. So a cash transfer isn't too bad as what you ultimately want is a pile of cash to spend on new funds.

Anyway, if you fill out the transfer form at CSD asking to transfer the assets rather than cash, they will sort it as best they can and contact you if it doesn't work. A cash transfer is usually quite a bit quicker than fund re-registration but does leave you 'out of the market' for the couple of weeks while it processes which may not be desirable when the markets can easily move a percent or two every day. Meanwhile, an in-specie transfer of assets can be slow and lumbering and take a lot longer than a cash one before you are finally ready to exit those funds and buy into new ones that you prefer - but at least you maintain your existing interest in the markets. I don't have any specific experience of IPS to CSD myself in terms of ease / timescale.

Good luck and have fun with your new investment platform!