Scottish Widows ISA

I have a small ISA set up years ago.  It's in UK Tracker Share class B. Its performance over the years has been dreadful, and it is time to do something about this. What, please, are my options? I assume it is possible to transfer it to a better fund than cash it in, as this will lose the benefit of tax-free income.  I have already used up my ISA allowance this year.  Any suggestions or ideas would be welcome. 

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  • dunstonh
    dunstonh Posts: 115,724
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    Its performance over the years has been dreadful, and it is time to do something about this.
    100% in UK equity explains that.   UK equity performance in UK large went through  a period when value was out of fashion and has been poor for over a decade.   Mid and Small cap was decimated by Brexit.

    What, please, are my options?
    About 30,000 of them. 

    I assume it is possible to transfer it to a better fund than cash it in, as this will lose the benefit of tax-free income.
    Just noting your comment of tax free income.  Are you drawing the natural yield from the ISA?  If so, that will explain why the growth side will look poor.  UK equity returns tend to be one of the most slanted towards dividends.  So, if you are drawing those out you are taking half of the return away.

    Transferring makes sense.   Its not the ISA wrapper that is the issue.  Its 100% in one area that is the issue.





    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • badger09
    badger09 Posts: 11,062
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    bucksman said:
    I have a small ISA set up years ago.  It's in UK Tracker Share class B. Its performance over the years has been dreadful, and it is time to do something about this. What, please, are my options? I assume it is possible to transfer it to a better fund than cash it in, as this will lose the benefit of tax-free income.  I have already used up my ISA allowance this year.  Any suggestions or ideas would be welcome. 
    You have multiple options but haven’t given us much to go on. 
    It is possible to transfer the money in your S&W S&S ISA to another provider. As long as you use the new provider’s xfer process, you will retain the ISA status. 
    If you want to keep it invested, then you probably need a global multi asset fund. 
    Do you have other S&S investments held outside SW? 
    Roughly how much is it worth?
    Do you want to add to it every year?
  • xylophone
    xylophone Posts: 43,887
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    Is this your only stocks and shares ISA?
    What is its value?
  • Albermarle
    Albermarle Posts: 21,207
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    You first need to check what other investments are available in the SW ISA.

    It is the choice of investment that has caused the issue with poor performance, not the fact that it is in a SW ISA.
  • bucksman
    bucksman Posts: 27
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    Thank you for your speedy responses. It is 10k.  I am not drawing anything from it. I have other cash ISAs and a S&S ISA portfolio with Interactive Investor.  These have been performing better, but more by luck than trading acumen! 
  • badger09
    badger09 Posts: 11,062
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    Your options depend on whether you want to keep this £10k invested or not. 
    If you want it invested, xfer it to II to keep all S&S  together, or to another provider. You’ll almost certainly have to sell to cash before xfer as from memory, SW have their own unique class of funds. 
    If you want it in cash, select your provider, open your chosen ISA & complete their xfer process. 
  • Beddie
    Beddie Posts: 559
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    edited 1 February at 2:28PM
    bucksman said:
    Thank you for your speedy responses. It is 10k.  I am not drawing anything from it. I have other cash ISAs and a S&S ISA portfolio with Interactive Investor.  These have been performing better, but more by luck than trading acumen! 
    Transfer it to Interactive Investor, as cash. Less admin and you can make a decision on where to invest it then - probably by topping up your existing holdings.
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