Sterling mini S&S ISA to H&L

butterfly72

I have 4 funds in a Sterling mini S&S ISA. I've been paying in monthly for a few years and ended it last year. To be honest this was all arranged by a IFA who used to be an acquaintance and I didn't really understand it all. Am trying to get my head round it now.

However, I've just got my statement in the post and notice that I'm paying Sterling a £30 annual charge for the privledge of these funds sitting there. I've just opened this years mini ISA with H&L and was wondering if I could transfer these 4 funds in Sterling over to H&L. If so would I incur any costs for this and how do I go about it?

Would it be as simple as transferring a previous year's mini cash ISA to a new provider?

thanks.

Stompa

http://www.h-l.co.uk/our_services/isa_transfers.hl

dunstonh

However, I've just got my statement in the post and notice that I'm paying Sterling a £30 annual charge for the privledge of these funds sitting there. I've just opened this years mini ISA with H&L and was wondering if I could transfer these 4 funds in Sterling over to H&L. If so would I incur any costs for this and how do I go about it?

I have a small number of ISAs with Sterling as they have a capital guarantee on death which can be attractive to the older investor who is concerned about risk of capital loss when they die. Not one of these has a £30 admin charge from Sterling.

Are you sure it was an IFA that arranged it or was it perhaps an old Allied Dunbar or Zurich rep as they used the Sterling platform and they would typically be more expensive than an IFA.

butterfly72

Dunstonh, I have no idea who the IFA was connected to/with.

Anyway, I phoned Sterling and this annual charge is in addition to the fund charges which are built in to prices etc. The charge is 0.5% of fund value. I've phoned H&L and I can transfer but it will need to be as cash and then reinvested. Am not sure of the implications of this apart from the fact that I could change funds if i wanted??

I've had a look on the H&L site and a bit confused about their annual charges. I did ask on the phone but I obviously didn't listen! This is what the H&L website says:

'Part of the annual management charge can be used to pay a broker what’s known as “renewal commission”. If you buy an ISA directly from the fund manager, they simply keep this commission themselves, so the renewal commission makes absolutely no difference to the annual management charges you pay.
We share the renewal commission we receive with you through our annual loyalty bonuses in the Vantage ISA. On a portfolio worth £7,000 our loyalty bonuses could save you £175 over the next 10 years; more if your investments rise in value.
Within the Vantage ISA most investors receive the ISA wrapper for free. There are no further annual charges to hold any fund for which we receive renewal commission. For the few funds on which we do not receive renewal commission there is a further ISA annual charge of 0.5% (+VAT)'.

How do I know if they get a renewal commission on my funds? If not, I'm still liable to this 0.5% charge, is that correct?

Do you think its worth the hassle then?

dunstonh

Dunstonh, I have no idea who the IFA was connected to/with.

IFAs are not connected to anyone. FAs are.

I am going to guess you didnt see an IFA but saw an FA. The extra charge is more typical of tied agents than IFAs.

How do I know if they get a renewal commission on my funds? If not, I'm still liable to this 0.5% charge, is that correct?

Its not a 0.5% charge. Its part of the annual management charge. So, if the retail charge is say 1.5%, the servicing adviser gets that (although many tied companies keep that for themselves after paying the adviser a larger up front payment).

Do you think its worth the hassle then?

Yes if you havent got a servicing adviser. You a paying for a service you are not getting.