S&S ISA transfer - share class not supported

HiZ

Hi all, Im a novice investor and would appreciate some advice.
Im currently using Interactive Investor as the platform for a S&S ISA with several funds, and an old Invesco Global Equity fund provided by Invesco themselves.  Because of the management fees (1.67% on that fund)  I have tried to transfer the Invesco fund over to II but the share class isn't supported.
II can't transfer the fund as-is because that class is not supported, and Invesco can't convert to the one they do support as its not available to retail.  My only options appear to be; Leave as is or Sell the shares and transfer the cash over to retain the ISA wrapper.  The fund hasn't done too well in recent years so a little hesitant about selling.
Any thoughts or advice as to what to do welcome!  Thanks

masonic

Is your rationale that, because of it's recent underperformance, this fund is set to perform better than other funds in its sector in the next few years and catch them up? Seems more likely an underperforming fund will continue to underperform, especially one with relatively high charges.

HiZ

masonic said:

Is your rationale that, because of it's recent underperformance, this fund is set to perform better than other funds in its sector in the next few years and catch them up? Seems more likely an underperforming fund will continue to underperform, especially one with relatively high charges.

OK, fair point.  My rationale is that Im in this for the long term so hopefully it would recover.  However, looking at the trend its been underperforming the benchmark for a couple of years.

masonic

I'd be surprised if you couldn't find a similar fund over at II, perhaps one with lower charges and better prospects.

Alexland

HiZ said:

OK, fair point.  My rationale is that Im in this for the long term so hopefully it would recover.  However, looking at the trend its been underperforming the benchmark for a couple of years.

Although it's commendable that you see investing as a long term activity are there any particular reasons you want to be in this fund when you could just get an index tracker at 10% of the price? Why do you think the performance would improve to make faster gains than a tracker? Many active funds suffer a similar slow performance death and never really get up pace again. It's probably a good thing that II won't transfer it as a trigger for you to review it - would you put new money in it today?

Alexland

masonic said:

I'd be surprised if you couldn't find a similar fund over at II, perhaps one with lower charges and better prospects.

I am not an expert on how the II user interface works but filtering on 'actively managed', 'expensive' and 'average to poor performance' might give a good selection of similar funds to put misplaced faith in.

HiZ

Alexland said:

masonic said:

I'd be surprised if you couldn't find a similar fund over at II, perhaps one with lower charges and better prospects.

I am not an expert on how the II user interface works but filtering on 'actively managed', 'expensive' and 'average to poor performance' might give a good selection of similar funds to put misplaced faith in.

Ok, point taken!
Ive had the fund for 20 years and haven’t contributed to if for the last 5 or so. I’ll do some research and look to transfer the cash over and put it to better use such as adding to my existing Vanguard Lifestrategy, F&C IT etc.

It’s probably a separate thread itself but is now a good time to feed my low cost UK tracker.  Obviously these have taken a big hit since March.

Alexland

HiZ said:
It’s probably a separate thread itself but is now a good time to feed my low cost UK tracker.  Obviously these have taken a big hit since March.

If you have conviction that UK listed companies are undervalued and will provide a good source of capital growth and income then sure. Or if you hold a few geographic trackers and need to rebalance to a target asset allocation then yes again.
Otherwise just hold an All World or Global All Cap tracker and let the market work it out reasonably efficiently.