1. Home
  2. UK Finance Discussions
  3. Transferring Stocks & Shares ISA - opinions?

Transferring Stocks & Shares ISA - opinions?

One of my largest savings is now valued at about £30k, in a Standard Life Stocks & Shares ISA (Equity Income Trust). They are about to switch this to another company called Alliance Trust Savings. I'm put off by the extra annual £75 charges, and the fact that I have no Alliance performance history to assess.

At this page

formatting link
I read that "The deal leaves just five investment trust groups offering no-charge savings schemes into their investment trusts. They are: Aberdeen Asset Management, Baillie Gifford, Fidelity, JPMorgan and Schroders."

First, can anyone comment on the accuracy of that please. My first call was to Baillie Gifford who told me that their ISAs have an annual charge of £32.30 +VAT. So not 'free', which makes me sceptical of that source.

Any comments/observations/opinions/web links that might help me find and assess a new home for my ISA would be much appreciated please.

Reply to
Terry Pinnell
Loading thread data ...

Before you look too deeply, can you confirm that SL/ATS will allow you to transfer the wrapper out *with the stocks & shares intact*?

I have been caught by this with my fund holder insisting that shares had to be sold first and the ISA transferred as a cash ISA.

Not surprisingly, this fact is either buried deep in their T&Cs or not mentioned at all.

Reply to
Flop

A second comment is that you may be better off staying with SL/ATS.

It is unlikely that £30k is enough but the £75 charge may be balanced by an increase in returns if the fund managers no longer pay a percentage of your fund in annual fees.

This is a result of FCA rules aimed at making financial services more transparent. Which, as usual, fails.

Reply to
Flop

Thanks, appreciated.

I missed the 30th April deadline for taking the option to transfer from SL to an alternative company. So I've had to take the option to switch to ATS, at least for the time being. However they will make no charge for a subsequent transfer before 24th July.

I understand that the whole package remains unchanged, apart from charges going from zero to £75. That prompts a side question, although it probably shows my poor knowledge of the basics. According to this page

formatting link
the Standard Life Equity Income Trust PLC is *managed*. So how do SL and a few others offer this at no charge?

Reply to
Terry Pinnell

Surely any company holding your money in stocks and shares is going to charge you? Some have fixed fees plus a ongoing management charge and others may have no fixed fees but a higher management charge, albeit some companies are better than others. Any managed fund, as opposed to a tracker fund, is likely to attract higher management charges.

They may define some of the money you pay as fees rather the charges.

I have some older JPMorgan investments and still get all their advertising literature for ISAs, from memory, their fees are around 3 to

5% up front to invest in their funds which they often waive for a short period at the end of the tax year for new money.

IMO with charges it's always heads we win, tails you lose. If a fund does badly the company will often increase their fees to the maximum allowed in the T&C rather than the lower figure they advertised when you purchased.

Reply to
alan_m

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.