ISA Transfer query

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Rookie13
Rookie13 Posts: 11 Forumite
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in Savings & investments
Hi, I have a fairly substantial ISA holding (300K) with a platform and I want to transfer away from it to another platform ( or platforms if that is possible.) My concern is the "time out of the market phase" where I could lose ground on such a considerable amount should the markets rise considerably during the transfer phase. I believe my investments would have to converted to cash before re investing. Is there some vehicle by which I can transfer lump sums - say 50k per month over a six month period for example- in order to spread the risk out or must the whole ISA be transferred in one lump sum? Or is there some better way of doing this and off setting risk?

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  • noh
    noh Posts: 5,799 Forumite
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    It's usually possible to transfer in specie. I did so with my ISA of a similar value earlier this year.
    It does depend upon the investments and the platforms involved.
    Where are you transferring from/to ?
  • Rheumatoid
    Rheumatoid Posts: 887 Forumite
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    I did likewise - fidelity to HL - all went over fine.
    16 Panel (250W JASolar) 4kWp, facing 170 degrees, 40 degree slope, Solis Inverter. Installed 29/9/2015 - £4700 (Norfolk Solar Together Scheme); 9.6kWh US2000C Pylontech batteries + Solis Inverter installed 12/4/2022 Year target (PVGIS-CMSAF) = 3880kWh - Installer estimate 3452 kWh:Average over 6 years = 4400 :j
  • badger09
    badger09 Posts: 11,206 Forumite
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    Rookie13 wrote: »
    Hi, I have a fairly substantial ISA holding (300K) with a platform and I want to transfer away from it to another platform ( or platforms if that is possible.) My concern is the "time out of the market phase" where I could lose ground on such a considerable amount should the markets rise considerably during the transfer phase. I believe my investments would have to converted to cash before re investing. Is there some vehicle by which I can transfer lump sums - say 50k per month over a six month period for example- in order to spread the risk out or must the whole ISA be transferred in one lump sum? Or is there some better way of doing this and off setting risk?

    Have you considered transferring 'in specie'? You'd have to check that your chosen new provider offers the exactly the same fund class. The transfer would take longer than transferring in cash, but you wouldn't be out of the market at all.

    You can transfer over a period as you suggest. Simply sell £50k of your chosen investment and ask the new provider to transfer as cash. You would have to do this every month x 6.

    You would have to calculate the trading costs & benefits of both methods.

    A bit more information would help. What do you currently hold? With whom? Where do you want to transfer to? Do you want to hold exactly the same as now?
  • Rookie13
    Rookie13 Posts: 11 Forumite
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    The platform is SJP. Costs etcetera mean my growth is taking a bit of a hammering (to say the least) on what is a middle of the risk road " cautious /balanced" investment. Since it is is an "own brand" type of investment I don`t know if it is possible to do in specie with this?? This is why I thought I might have to convert to cash prior to re investing. I have been putting in the hours reading up on DIY investing and plan to do my own thing in due course. I have named my current platform as I was asked to do so and it may help others with their advice. It is not intended to be a SJP bashing thread ( as these seem to get closed down pretty quickly.) Thanks.
  • xylophone
    xylophone Posts: 44,411 Forumite
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    I would not attempt to transfer in specie again.
  • Alexland
    Alexland Posts: 9,653 Forumite
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    edited 9 October 2018 at 10:25PM
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    Rookie13 wrote: »
    The platform is SJP. Costs etcetera mean my growth is taking a bit of a hammering (to say the least) on what is a middle of the risk road " cautious /balanced" investment. Since it is is an "own brand" type of investment I don`t know if it is possible to do in specie with this??

    To be honest, despite their legendary high fees and resulting mediocre performance, if you have managed to accumulate £300k in your S&S ISA that's not bad going all things considered. I assume you are a long term customer and no early exit fees would apply?

    But yes if they have you invested in their own label funds these will not be available on other platforms so you would need to transfer as cash which should be fairly quick (a few weeks) assuming no unexpected issues are encountered. During that time you are out the market it's almost 50/50 what would happen.

    You may also wish to consider the £50k FSCS protection limit on S&S ISAs (rising to £85k in April 2019) which shouldn't be a problem if you go with a mainstream profitable platform however it depends on what proportion of your overall wealth the potential loss would represent.

    Alex
  • Rookie13
    Rookie13 Posts: 11 Forumite
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    Actually no I`m not a long term investor with this company. However I do see how costs will have a drag effect on future growth so I want to look elsewhere for better returns.
  • badger09
    badger09 Posts: 11,206 Forumite
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    To go back to your original question now you've provided more info:

    Yes, you can transfer your SJP S&S ISA to one, or several new providers. Current year subscriptions must be kept together, but you can split previous years' subscriptions as you wish.

    Probably best to decide first what you want to invest in, and how much you want to hold with each platform. Then look at platform charging models. Fixed fee with no ongoing holding charge (eg IWEB) might suit if you're moving £50k at a time.

    When you've decided what & where, simply open a new S&S ISA with your chosen platform(s). Sell enough of your existing investments to realise the amount you want to xfer, then ask the new provider to make that transfer in cash.

    Let us know what you decide.
  • MallyGirl
    MallyGirl Posts: 6,617 Senior Ambassador
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    xylophone wrote: »
    I would not attempt to transfer in specie again.

    me neither - it took nearly 4 months and I only held one fund
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
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  • jimjames
    jimjames Posts: 17,619 Forumite
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    MallyGirl wrote: »
    me neither - it took nearly 4 months and I only held one fund

    Does it matter though if you're not out of the market? My transfer took some time to complete but I didn't lose money from being in cash
    Remember the saying: if it looks too good to be true it almost certainly is.
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