Charles Stanley Direct to increase fee to 0.35%

masonic

DennisTenus wrote: »

So funds that aren't investment trusts or ETFs are all open ended?

Open ended funds are traded by the fund issuing/cancelling units and are not traded on a stockmarket exchanges (these include OEICs and UTs as pointed out by ColdIron).

Closed ended funds (for example investment trusts) have a limited number of units (shares) available and these shares are traded on a stockmarket exchange and priced according to supply/demand.

Dividends from the former have previously been subject to long delays with II, whereas dividends from the latter have always been paid on time.

Grumpazoid

After doing a bit of research I'm thinking of moving all the funds that I hold and are available on iweb over to them. Charles Stanley agree I can move which funds I like for zero charge. It seems a no brainer unless I am missing something?

ColdIron

Are the funds in an ISA?

ChopperST

Grumpazoid wrote: »

After doing a bit of research I'm thinking of moving all the funds that I hold and are available on iweb over to them. Charles Stanley agree I can move which funds I like for zero charge. It seems a no brainer unless I am missing something?

Depends on the value of your portfolio and how often / how many funds you intend to trade...

pentop

eskbanker wrote: »

Yes, Vanguard are cheaper at 0.15% (if you're only buying into their funds), or a couple of other 0.25% options are shown at ...

I have money in a CS ISA invetsed in a Vanguard Retirement 20XX fund. So I looked at moving to Vanguard Investor.

However, the ongoing charge for the retirement fund is 0.24%, plus 0.1% transactional cost in the first year, so I would pay 0.15% + 0.24% + 0.1% => 0.49% in the first year. This is more - much more than CS!

Am I misunderstanding something?

Lokolo

I am moving my SIPP to ii. I will be saving a whopping 0.01% (changing total cost from 0.25% to 0.24%) based on my fund value and 14 trades (rebalance). However, as my SIPP grows, the total cost will reduce to the charges being fixed.

I am keeping m S&S ISA with them for the time being, there is only £10k in there, so little difference.

Lokolo

pentop wrote: »

I have money in a CS ISA invetsed in a Vanguard Retirement 20XX fund. So I looked at moving to Vanguard Investor.

However, the ongoing charge for the retirement fund is 0.24%, plus 0.1% transactional cost in the first year, so I would pay 0.15% + 0.24% + 0.1% => 0.49% in the first year. This is more - much more than CS!

Am I misunderstanding something?

Why are you not including the ongoing charge in the total CSD cost when comparing?

ColdIron

pentop wrote: »

However, the ongoing charge for the retirement fund is 0.24%, plus 0.1% transactional cost in the first year, so I would pay 0.15% + 0.24% + 0.1% => 0.49% in the first year. This is more - much more than CS!

The ongoing charge and transaction cost are internal to the fund so should be the same regardless of which platform you use

So using your figures (I haven't checked) the comparable cost with CSD would be 0.35% + 0.24% + 0.1% = 0.69% or 0.20% more as that is the difference between both platform charges

ValiantSon

pentop wrote: »

I have money in a CS ISA invetsed in a Vanguard Retirement 20XX fund. So I looked at moving to Vanguard Investor.

However, the ongoing charge for the retirement fund is 0.24%, plus 0.1% transactional cost in the first year, so I would pay 0.15% + 0.24% + 0.1% => 0.49% in the first year. This is more - much more than CS!

Am I misunderstanding something?

Yes, I'm afraid that you are.

The OCF of the und is the same no matter which platform you hold it on, i.e. 0.24%. Charles Stanley are about to charge you 0.35% platform fee, whereas Vanguard Investor will charge you 0.15% platform fee. This makes the total cost 0.39% on Vanguard Investor and 0.59% on Charles Stanley.

The way that transaction costs are calculated is ludicrous, and frankly not worth worrying about, but if you really must, then it is the same on both platforms, because it is a cost calculated by the fund manager. If you really want to add it in then Vanguard Investor works out at 0.49% and Charles Stanley at 0.69%.

However you work it, Charles Stanley is 0.2% more expensive.

ETA: I see ColdIron beat me to it.

ValiantSon

DennisTenus wrote: »

Silly question.... HL have told me they calculate fees at end of the month (not daily like CSD), so I know it would be a pain to do and potentially a few days out of the market, but I could sell my big holdings at the end of each month until the start of the next then buy them again and my HL fee would be considerably less??

That would be lunacy. There are so many pitfalls to such action, but for starters how about the chance that you sell low towards the end of the month and buy high near the start?

Honestly, find a platform - that allows you to buy the funds you want to hold - which charges a reasonable price for holding and trading.