Interactive investor to H-L switch.

capstain411

I have got 2K worth funds ( Stock ISA), with Interactive investor managing it. I want to switch over to Hargreaves lansdown Vantage ISA.

Just wanted to know whether a stock transfer would be the best way to do it or should I opt for the cash transfer. I was told by H-L CS that stock transfer can take up to 6 weeks. Will this mean my funds will be out of market for that time ?

My present portfolio

Gartmore china opp : £500
JPM natural resources : £500
Invesco perp Latin American : £500
Martin Currie Emerging markets : £500.

Lastly, does Interactive investor charge any transfer fee.I am looking for the change for lower management fees and did not have 3k to open vantage ISA in the first place.

I was told by H-L CS, I do not need a min of 3k investment to open Vantage ISA , if I am transferring my ISA. I am considering Stock ISA only as I am quite happy with my 3k resting in NS&I cash ISA.

wombat42_2

I switched to H & L a few months ago and made a big mistake in selecting cash transfer not stock transfer. I was on the phone to a H&L rep and he implied that a cash transfer would be best as it would just take a few days but a stock transfer could take 4 weeks. I selected cash transfer which only took 4 days but during that time it was out of the market and i lost out on a hefty 12% market rise.

I should have selected stock transfer which although it takes long is not out of the market at all. I did not understand this at the time. I tried to complain to H&L but didnt get anywhere.

dunstonh

If you want the same funds, you do re-registration. If you want different funds, you should do transfer.

re-registration doesnt take you out of the market but transfer does.

noviceinvestor_2

Hi capstain411,

Can I ask you a quick question - why are you moving from iii to H-L in the first instance? The reason I ask is that i have some stocks within an iii self select isa and they don't charge an isa admin fee. From what I understand H-L do (up to £200 + VAT).

I'd be interested to hear your rationale.

Jake'sGran

noviceinvestor wrote: »

Hi capstain411,

Can I ask you a quick question - why are you moving from iii to H-L in the first instance? The reason I ask is that i have some stocks within an iii self select isa and they don't charge an isa admin fee. From what I understand H-L do (up to £200 + VAT).

I'd be interested to hear your rationale.

I have a number of ISAs with HL and as I understand it after they have discounted all (just a few exceptions) of the initial charge for the fund being purchased and also give back a small amount of the annual commission they receive. I know nothing of the ISA admin fee you mention and wouldn't be with them if they charged it.

david78

With H-L you don't pay an annual fee to hold most funds (unit trusts and OEICs) as long as the fund pays some commission to H-L. H-L give you a share in this commision as a "loyalty bonus".

Where a fund pays no commision (e.g. index trackers) or where you hold shares or investment trusts, the annual fee is 0.5% of the collective value of these investment and is capped at £200 for the year - i.e. you would pay a fee of £200 if your total non-commision paying investments was £40,000 or more. From the T&Cs I believe the cap kicks in when the £40,000 level is reached collectively across all the Vantage accounts you might own [PEP, ISA, SIPP, SHARE, FUND] but I have not had this confirmed.

I hold an investment trust in my SIPP valued at £2,500 (and rising) which costs me about £1 a month to hold. My other investments are unit trusts and OEICs on which I pay no charges.

capstain411

noviceinvestor wrote: »

Hi capstain411,

Can I ask you a quick question - why are you moving from iii to H-L in the first instance? The reason I ask is that i have some stocks within an iii self select isa and they don't charge an isa admin fee. From what I understand H-L do (up to £200 + VAT).

I'd be interested to hear your rationale.

Comparison fees of the two. ( funds which i have invested in)

Interactive Investor / Hargreaves lansdown
1) Gartmore : 2.50% /1.69%
2) JPM : 3.75% /1.63%
3) Martin Currie : 2.50%/ 2.05%
4) Invesco : 2.50% /1.71%

I would say the reason for switch should be straight forward. However, if i have missed any other expense which can be incurred, please do post.

dunstonh

The charges you have for iii vs HL dont seem right. Whilst it is initial charges where there is the biggest difference normally, you expect the annual management charge to either be retail or a tad lower if some trail commission is rebated.

Those charges suggest much higher annual management charges at iii and indeed additional charges on top, which is unlikely.

rathernot

capstain411 wrote: »

Comparison fees of the two. ( funds which i have invested in)

Interactive Investor / Hargreaves lansdown
1) Gartmore : 2.50% /1.69%
2) JPM : 3.75% /1.63%
3) Martin Currie : 2.50%/ 2.05%
4) Invesco : 2.50% /1.71%

I would say the reason for switch should be straight forward. However, if i have missed any other expense which can be incurred, please do post.

OK I have a small amount in most of those with Interactive Investor so what have I missed?

JPM - Annual Management Charge 1.5%
Gartmore China - Annual Management Charge 1.5%
Invesco Latin - Annual Management Charge 1.5%

munk

rathernot wrote: »

OK I have a small amount in most of those with Interactive Investor so what have I missed?

JPM - Annual Management Charge 1.5%
Gartmore China - Annual Management Charge 1.5%
Invesco Latin - Annual Management Charge 1.5%

I think capstain was comparing initial charges, not AMCs. The discount/rebate on AMCs with HL is 0.25% pa on each of the funds mentioned, so assuming those 1.5 figures are correct, you'd only pay 1.25% at HL.

capstain411

dunstonh wrote: »

The charges you have for iii vs HL dont seem right. Whilst it is initial charges where there is the biggest difference normally, you expect the annual management charge to either be retail or a tad lower if some trail commission is rebated.

Those charges suggest much higher annual management charges at iii and indeed additional charges on top, which is unlikely.

By giving example of the charges what I actually mean to say is overall with initial+annual mngt charges, I am losing out with III.co.uk. Had I purchased the funds which I hold, through H&L, I would have saved a considerable amount of money.

I am looking forward to the switch, because, i want to increase my portfolio and H&L total charges would definitely be less than iii.co.uk.