In specie SIPP transfer - HL version of fund

MichelleUK

I would like to transfer my SIPP from Hargreaves Lansdown to ii, as it has now reached the point where the charges are too much.

I hold an L&G Technology fund that is a special version (lower charges) that “I think” is only available on HL. 

Has anyone ever had any luck getting HL to transfer it to the regular version (that they do not offer) so that the transfer can take place? It is quite a volatile fund, so I really do not want to transfer it as cash, especially as I cannot guarantee how long it would be out if the market. Thanks!

dunstonh

If you are transferring in-specie then leave it on the superclean share class.   Most platforms will accept existing fund classes in-specie.  They just cant add to them with cash.

MichelleUK

Thanks ….the problem is that it is currently in a class that only HL appear to have (discounted): Legal & General Global Technology Index Trust Class C.

HL have now confirmed that they cannot transfer it to Class I, which is what ii have. ii have stated that they can only accept it in Class I. That was not something that I thought about when I bought their ‘special’ class, especially as I always intended to move my SIPP to ii once the HL fees exceeded ii’s flat rate!

It has taken a bit of a beating lately, so I will have to wait until it rises back up before cashing it out….at least it will reduce the HL fees a bit! 

dunstonh

Thanks ….the problem is that it is currently in a class that only HL appear to have (discounted): Legal & General Global Technology Index Trust Class C.

L&G class C is an institutional share class.  It's not unique to HL.   HL offer it to retail customers as they have an agreement with L&G that ensures a minimum of £x will be invested in L&G funds to meet institutional investor requirements.  

 ii have stated that they can only accept it in Class I.

That makes them unusual.    Indeed, I am surprised.   You expect fund supermarket-style platforms to have that limitation, but I thought it was a whole-of-market, fully functional platform.

MichelleUK

This was their response: 

“The security you wish to transfer cannot be accepted into our custody as it is not supported, however, you could request Hargreaves Lansdown, prior to transfer, to convert into the alternative and accepted share class held with ISIN GB00B0CNH163 or sell and transfer as cash only”

I will just have to be patient until it recovers….thanks for your help!

squirrelpie

HL fees are expensive if you hold 'funds'. They are a lot more reasonable (because they are capped) if you hold quoted investments instead (i.e. shares, investment trusts, ETFs etc)

Somebody

I transferred from HL to II earlier this year.  I just agreed to the conversions as II suggested when they initially looked at the list of the funds.  

leosayer

You could do a spread bet on a related index to give you the exposure you need for the period you are out of the market.

MK62

Another option might be to switch your investment to an alternative tech fund which is available on both platforms....eg Fidelity Global Tech W Acc (amongst others)........then switch to the L&G Class I fund after the transfer completes.

MichelleUK

Somebody said:

I transferred from HL to II earlier this year.  I just agreed to the conversions as II suggested when they initially looked at the list of the funds.  

Hi Somebody, did II convert these from the old fund to the new fund on the same day? Just wondered if you had to convert ahead of time and be out of the market for a while?

Somebody

MichelleUK said:

Somebody said:

I transferred from HL to II earlier this year.  I just agreed to the conversions as II suggested when they initially looked at the list of the funds.  

Hi Somebody, did II convert these from the old fund to the new fund on the same day? Just wondered if you had to convert ahead of time and be out of the market for a while?

Hi MichelleUK, it was HL that did the fund conversions before they were transferred to II.  I can't tell you whether they were converted on the same day, sorry.   I've been through the last HL investment report ending 30 April 2024 and there are no fund sales and repurchase transactions listed whatsoever.

This was a fund that was converted at the suggestion of II: BG0QP60 GB00BG0QP604 LEGAL & GENERAL UT - Alternative share class available: GB00B2Q6HW61

Looking at the factsheets at Fidelity, the version sold by HL (and cannot be held at II) has an ongoing charge of 0.08% vs 0.13% the converted (II) version.

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00BG0QP604-lg-international-index-trust-c-acc/charges-and-key-documents

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00B2Q6HW61-legal--general-international-ind-i-acc/charges-and-key-documents