Hi I have two unit trust based PEPs from 1997 and 1998, one with Jupiter and one with Invesco. Each one is only worth about £1000 (which is the amount I invested - so you can see why I want to change!). I'd like to change providers and invest the money in a low-cost tracker fund, while still keeping the PEP tax advantages. What is the best way of going about this without being stung for lots of fees? Can you recommend a provider? Thanks for your help.
PEP - unit trusts to tracker transfer?
Oct 17, 2003
8 Replies
Look for a unit trust or investment trust that
1) aims to outperform an index2) has managed to outperform the index over the last few years.
The FTSE index is not very different today from what it was in 1997/8 so don't rubbish your unit trusts until you've compared them to other funds.
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Look at using a low-cost broker such as Hargreaves Lansdown
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or Chelsea Financial Services
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if you decide to change - fees are significantly reduced.
Neil
I can't really, since the FTSE is something like 30% lower than it was in
1998. The last time it was at current levels was 1995.
Irrelevant for trackers, they don't usually have any commission to rebate.
Chelsea do a 0.5% discount on L&G trackers for lump sum investments - probably from 1% or so.
Thom
AFAIR the L&G trackers only charge 0.5% a year, so that implies they don't make any profit for several years!
In message , Richard C writes
I dont understand this bit at all! The market as a whole has been crap.
As it happens InvescoPerpetual and Jupiter both have some cracking funds, it is likely you are just in the wrong ones. I have been plugging them here for years. You can switch funds with Jupiter or Invesco for a reduced initial charge.
Which funds are you invested in?
Finally, you say you are looking at trackers, what do you want to track?
I think the upped the charges to 0.75% or 1% for most of them. The fixed interest charge was 0.5% (Chelsea did a 0.25% lump sum discount even then).
Thom
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