Fundsmith ISA wrapper ...

valiant24

Hi.
I'm not sure if this is the right place to ask this.
I have several hundred thousand invested in a Fundsmith ISA.   I invested a couple of years' ISA allowance directly with Fundsmith more-or-less from the start, and have more than quadrupled my money, so it's been great for me.
I do think it might be time to take some profits soon though.   If I do sell, say, £50,000 though, that will be £50k that leaves the ISA wrapper forever.  So I am considering opening a low-cost ISA wrapper with (say) AJ Bell, and transferring the Fundsmith ISA to that.  In that way, if I sell some Fundsmith I can re-invest in something else, and keep the full sum within the ISA.
Any thoughts on this?  Obviously I'll pay some small annual charge to the ISA platform that I don't direct to Fundsmith,  But it seems a more flexible way to hold my Fundsmith ISA.
Thanks
V

Prism

I would switch from the T class to the I class after the transfer to drop the fee down a touch. It still costs a bit more than holding direct but like you say it is more flexible. I have never sold a Fundsmith unit to this date but I haven't bought any either for a few years now.

bowlhead99

As you've noticed, Fundsmith can be held via other ISA managers (AJ Bell, Halifax/IWeb as examples, with different fee structures) and those other ISA platforms will also let you hold things that are not Fundsmith, all in one account.

While Fundsmith can make good long term returns, it's not going to be the top performer in all conditions in every phase of an economic cycle. So IMHO it makes a lot of sense to move some or all of your ISA money to another platform, using the transfer process offered by that other ISA manager so the money never leaves the ISA 'wrapper'. From that other platform you can carry on holding Fundsmith if you want, or alternatively hold all manner of different holdings.

IvanOpinion

You say you have ' several hundred thousand invested' so you would need to consider platform fees.  If you are more of a buy-and-hold type of person or do very few trades I would also suggest looking at Interactive Investor who use a flat fee (about £120 per year for an ISA).

Alexland

Switching from the T(erry) to the I(nstitutional) fund class will save you 0.10% pa OCF but you would be paying AJ Bell 0.25% pa (plus £1.50 per fund trade) for their platform so the cost would go up by at least 0.15% pa.

It would be better to transfer to a fixed price platform such as iWeb at £100 setup and £5 per trade (no ongoing cost) and you would then actually save money from holding the I class with a broader market choice platform. Or if you don't like iWeb you could go with II above at £120 pa with a free trade each month.