Transfer Stocks and Shares Isa From M&G to Fidelity/Hargreeves

Rodders57

I have a M&G Global Strategic Fund S&S ISA, can I transfer the fund out to another less costly provider to reduce the yearly fund costs which is currently well over £1k per year on £55k or is this a competitive price 
Thanks

masonic

Yes, either Fidelity/HL will have the fund available on its platform, in which case it can be moved directly, or if they do not support it, you can still instruct them to transfer in cash and reinvest in something similar.

ColdIron

You can transfer your ISA but be sure to compare apples with apples and compare the total costs. HL/Fidelity have annual fees but they won't include the fund manager fee, they are extra. M&G's fee may include both. You'll probably be better off but you should check

Albermarle

Rodders57 said:

I have a M&G Global Strategic Fund S&S ISA, can I transfer the fund out to another less costly provider to reduce the yearly fund costs which is currently well over £1k per year on £55k or is this a competitive price 
Thanks

The cost of the same fund will usually be the same, regardless of which S&S ISA provider you use.

However the providers own charges ( often called a platform charge ) do vary.

In any case 2%, even if it includes both fund and platform charges, is too high.

masonic

I've not been able to pinpoint the precise fund from the name, but most likely it is M&G Global Strategic Value, which has an OCF of 0.9% (clean class). Whereas the OP appears to be paying about 1.8% overall. I am guessing it is currently in some dirty class at higher OCF (the worst being 1.3%), as surely the custody fee wouldn't be an eye-watering 0.9% too.

ColdIron

M&G have it with an Ongoing Charge of 1.30% though it's not clear what that covers. They do say 'Actual'

https://www.mandg.com/investments/private-investor/en-gb/funds/mg-global-strategic-value-fund/gb00b3v2ky90

Edit: The one above is the dirty A class so presumably some of that fee is rebated. It's not clear to me where the OP's 1.80% is coming from, but at HL for the I class that would be 0.90% + 0.45%

masonic

The good news is if it's that fund, Fidelity and HL both carry the cheaper I class.

Rodders57

   Woops my mistake and I owe you all an embarrassing apology. I received a six monthly statement and under the costs and charges is the breakdown of the cost for the statement period but reading the FAQ on the back of the statement " The reporting period for the charges information is referenced for a 12 month period" ( Embarrassed Emoticon), So the charges shown are for a12 month period not 6 month period 
The fund charges are 1.38 for my wife's M&G Global Strategic Value fund Sterling Class A , which has done quite  well this year.
Once again apologies and thanks for the replies 
Off to find out what a "Dirty Fund " is

Sam_666

Those are still heavy charges for investment.
Done quite well comparing to what? Your gut feeling?

dunstonh

The fund charges are 1.38 for my wife's M&G Global Strategic Value fund Sterling Class A , which has done quite  well this year.

Remember that fund disclosures on provider, platforms and IFAs will include the synthetic transaction charges. You don't actually pay the transaction charges.  It's a calculation using a variable method to give you an idea of what internal costs the fund suffers could relate to you.    Its flawed as fund houses can use different calculation methods that end up with different outcomes and they dont need to say which calculation method.   It was a known farce before the EU directive but they still went ahead.   The FCA is currently in consultation to alter the transaction charges calculation for investments retailed in the UK.

So, its basically a good idea to ignore the Transaction charges part of the charges disclosure.
So, in this case, class A is 1.30%  (with TC being 0.08% on top but ignored).

Class A is 1.30%
Class I is 0.90%
Class R is 1.81%

Class R is the pre-RDR version with provider commission and distributor commission included 
Class A is the own distribution version   with distributor commission removed but provider commisson retained
Class I is the clean unbundled share class (no commission).

Class I is what you would buy elsewhere.   But you would need to add their costs on top.   

If you look at the class A and class I difference, it means M&G is charging you 0.4% as a provider charge.
If you went to say Hargreaves Lansdown to buy the same fund, HL charge 0.45%.  So, would be more expensive.
If you went to a cheaper platform with costs around 0.2% then you would save money.

Rodders57

Sam_666 said:

Those are still heavy charges for investment.
Done quite well comparing to what? Your gut feeling?

Yes I do think they are heavy, 
Not my gut feeling but £43k odd in April to  just over £54k in October is pretty good to me is it not? the Climb has slowed down now though but it seems to be holding