ISA Transfer from Fidelity to Vanguard

MoneysavingSam

Hi all,
Has anyone had any experience of part transferring their ISA from Fidelity to Vanguard?  I have about £30k across a number of funds (mostly vanguard) and am considering moving them over to save on the annual fee but want to leave the non Vanguard funds where they are.  I think the Fidelity fee is going up to 0.35% from 0.2% (previous Cavendish customer) and Vanguard only charges 0.15%.  
My plan was to open a Vanguard ISA in April and then gradually transfer the Fidelity held Vanguard funds over, not sure if they'll have to be sold then re purchased?
If anyone has any experience of the above it would be great to understand it further 
Thanks x

Alexland

No one will have that experience.
https://help.fidelity.co.uk/site/transferring-investments/accept-partial-transfers
"When requesting transfers out, this must be 100% of your account".
So any non Vanguard investments (or Vanguard investments not available on Vanguard Investor) will need to be sold down to enable the whole account to transfer.

MoneysavingSam

Thank you. Very frustrating, guess I'll have to sell down gradually and re purchase in Vanguard... 

Alexland

Partial transfers are just too much work and risk of error for most S&S platforms to be bothered with.

Albermarle

  I think the Fidelity fee is going up to 0.35% from 0.2% (previous Cavendish customer) 

I thought the 0.2% only applied for pots over £200K and otherwise it was 0.25% .

This 0.25% will be held until Oct 2021 at the earliest .

I would not be totally surprised to see some tweaks to Fidelity charging structure as their UK client base has doubled in size recently . Economies of scale etc 

Alexland

Albermarle said:
I thought the 0.2% only applied for pots over £200K and otherwise it was 0.25% .

Well technically with Cavendish the Fidelity fee was 0.20% (or 0.15% for Wealth customers) as the extra 0.05% was the Cavendish fee to be 0.25% total (or 0.20% for Wealth customers).
So for a small account Cavendish was 0.10% cheaper than Fidelity's 0.35% and on a larger Wealth account it was the same 0.20%. So to temporarily honour the existing price Fidelity must have increased their charge by 0.05%.

I would not be totally surprised to see some tweaks to Fidelity charging structure as their UK client base has doubled in size recently . Economies of scale etc 

There is no reason for Fidelity to reduce their charges as they are already the joint cheapest percentage based provider (with CSD) for whole market fund choice without any trade fees (eg AJ Bell's annoying £1.50s).
If Fidelity were intending to reduce their charges they would have told the Cavendish customers to stop them leaving.

IvanOpinion

Do you want to keep the non Vanguard funds?  If not Xfer them to Vanguard funds, while with Fidelity, (should only take a few days) and then transfer everything to Vanguard.

Albermarle

Alexland said:

Albermarle said:
I thought the 0.2% only applied for pots over £200K and otherwise it was 0.25% .

Well technically with Cavendish the Fidelity fee was 0.20% (or 0.15% for Wealth customers) as the extra 0.05% was the Cavendish fee to be 0.25% total (or 0.20% for Wealth customers).
So for a small account Cavendish was 0.10% cheaper than Fidelity's 0.35% and on a larger Wealth account it was the same 0.20%. So to temporarily honour the existing price Fidelity must have increased their charge by 0.05%.

I would not be totally surprised to see some tweaks to Fidelity charging structure as their UK client base has doubled in size recently . Economies of scale etc 

There is no reason for Fidelity to reduce their charges as they are already the joint cheapest percentage based provider (with CSD) for whole market fund choice without any trade fees (eg AJ Bell's annoying £1.50s).
If Fidelity were intending to reduce their charges they would have told the Cavendish customers to stop them leaving.

You are probably right, and I think Fidelity's charging structure has been pretty stable for some time .
However there is a battle for market share going on, and Fidelity ( and others ) must be leaking business to Vanguard, so you never know. Maybe shave the % charge and increase that very low cap for ETF;s etc to compensate ( which would be a shame )