Cavendish/Fidelity and fees

Calleja

The last hour on google hasn't helped me I'm afraid, so I apologise in advance for what's probably a couple of stupid questions coming up...


After a couple of years perusing this site and building up my cash reserves, I finally took the plunge and opened a S & S ISA a few months back.I picked Vanguard Lifestrategy 60 via Cavendish online - I picked this as despite reading books and this forum, I still feel I don't understand stocks and shares enough to take on anything more than this! I think I'm happy with this choice...I'm currently paying £200 into it each month, but I'm looking to increase this when I max out the high interest rate bank accounts (and my confidence increases somewhat!).


So, the questions:
1. I say I did this via Cavendish online but I seem to log in via Fidelity - so who am I with, Fidelity or Cavendish online?
2. I'm trying to figure out the above so I know what fees I should be paying (I had picked Cavendish online because of the fees). But when I log into my account, I can't find anything about the actual fees I am paying - I expected to see them as transactions on my account, but I don't. When are they paid and how can I find out what the cost of the fees are in real terms?


Thanks for your help and patience

TheShape

Coincidentally, there is a thread below yours re Cavendish fees, might be some answers there:

https://forums.moneysavingexpert.com/discussion/5613909

greenglide

Fidelity collect their fees from the ISA cash if there is enough money there otherwise by selling units in the biggest holding.

The fees are collected monthly but are not "advertised" - you need to look at the transactions for the ISA cash or the funds.

I assume that Cavendish do the same?

choochootrain

You're with Cavendish: they use the FundNetwork (Fidelity's) platform, so once logged in the websites are identical apart from the Cavendish branding.

Fees are taken from your largest holding. You can see them by navigating to 'Holdings & transactions' in the sidebar then 'View transaction details' in the drop down menu next to your largest holding.

You should also receive via post a statement detailing the total fees every 6 months.

Rollinghome

Calleja wrote: »

So, the questions:
1. I say I did this via Cavendish online but I seem to log in via Fidelity - so who am I with, Fidelity or Cavendish online?
2. I'm trying to figure out the above so I know what fees I should be paying (I had picked Cavendish online because of the fees). But when I log into my account, I can't find anything about the actual fees I am paying - I expected to see them as transactions on my account, but I don't. When are they paid and how can I find out what the cost of the fees are in real terms?

The platform is Fidelity and Cavendish are the agent. Payments are made to Fidelity who pay Cavendish their small fee monthly and pass your investments to the fund managers.

From https://www.cavendishonline.co.uk/investments:
"All investments on the Cavendish Online FundSupermarket (powered by FundsNetwork™) will have
THREE explicit charges applied:
1. A fund manager charge
This charge will vary according to the fund you wish to buy. Please click here to identify a specific fund charge.
2. A platform charge of 0.20%
Reduced to 0.15% on the entire balance if you have more than £200,000 in your ISA, Investment (*) or Pension accounts.
3. A Cavendish Online Ongoing fee of 0.05%"

While you're getting the hang of investing you've probably made a good choice. You can move to another fund free of charge if you change your mind and Fidelity are one of the few platforms that let you move to another platform without any exit charges. Haven't used them for a while but when I did found them very helpful. Good luck with your investments.

Calleja

choochootrain wrote: »

You're with Cavendish: they use the FundNetwork (Fidelity's) platform, so once logged in the websites are identical apart from the Cavendish branding.

Fees are taken from your largest holding. You can see them by navigating to 'Holdings & transactions' in the sidebar then 'View transaction details' in the drop down menu next to your largest holding.

You should also receive via post a statement detailing the total fees every 6 months.

This is helpful, thanks, but amongst the transactions, I still can't see any fees. All that's listed is the four payments in that I have made so far. When I click on 'view transaction details' again (i.e. against an actual transaction) I get a summary page. On this, it says 'initial charge' and 'initial charge as %' - both of these state 0 for all of the 4 transactions. This seems odd to me - any ideas?

Calleja

Rollinghome wrote: »

The platform is Fidelity and Cavendish are the agent. Payments are made to Fidelity who pay Cavendish their small fee monthly and pass your investments to the fund managers.

I posted the above reply before I saw yours, thanks for replying. Does this mean I wouldn't actually see the fee listed? i.e. its taken out of my monthly charge before its invested?

Rollinghome

Calleja wrote: »

I posted the above reply before I saw yours, thanks for replying. Does this mean I wouldn't actually see the fee listed? i.e. its taken out of my monthly charge before its invested?

It's a while now but as I remember they tell you their fee on one of the screens when you place a deal. The fund manager's charge, the OCF, is within the fund as detailed in the Key Investor Information Document, the KIID, and the platform fees are taken at the end of each month, in arrears.

It used to be taken by selling a bit of your non-ISA investments if you have them, don't know if that's changed. If you want any clarification drop Cavendish an email (or phone Fidelity, freephone number) and they are both very helpful.

choochootrain

Calleja wrote: »

This is helpful, thanks, but amongst the transactions, I still can't see any fees. All that's listed is the four payments in that I have made so far. When I click on 'view transaction details' again (i.e. against an actual transaction) I get a summary page. On this, it says 'initial charge' and 'initial charge as %' - both of these state 0 for all of the 4 transactions. This seems odd to me - any ideas?

If I click 'View Transactions' for my largest holding, I can see share sales listed as 'Adviser Ongoing Fee Sell' (which is Cavendish's 0.05%) and 'Service Fee: Sell' (which is FundNetwork's 0.20%). If you can only see your four purchases, then I'm out of ideas! Might be worth contacting Cavendish's customer services, they're usually quick to reply.

Most funds don't have any initial charge these days if you purchase them through a fund platform rather than direct from the provider.

Calleja

Thanks both. Sounds like dropping them a line is my best bet to see what's going on. I'll update this thread if I get any answers!

RandomGuy

Calleja wrote: »

Thanks both. Sounds like dropping them a line is my best bet to see what's going on. I'll update this thread if I get any answers!

Please do let us know how you get on. I'm also a first-time investor, S&S ISA, picked Vanguard Lifestrategy 60 via Cavendish online, have only been with them for about 6 months, and pretty much been wondering the exact same things. I dare say we're not alone.

I was going to wait until the end of the tax year in case they issued a statement breakdown but I would have thought we'd be able to see this online too throughout the year.