Selling corporate bond ISA

Sep 12, 2003 3 Replies
N

Hi



Last November I asked this group for some investment advice. One of the tips recommended investing in a corporate bond ISA on which I did so with Standard Life. I invested £3000 in November 2002 (minus £87.38 charges) that bought me 3,579.476 shares at a price of 81.37 pence each. Since any growth is reinvested I currently have 3,593.311 at a price of 86.66 pence each which is equivalent to a 6.9% return not taking into account the charge, or 3.8% with the charge.



Firstly, when initially investing was I able to invest the full £3000 into the ISA and pay the charges on top of that, so did I miss out on £87.38 of my ISA allowance? And, is it possible to sell the shares in the corporate bond ISA but still keep the money wrapped up in 2002's ISA allowance in another form, say a FTSE tracker? I ask this as I think the value of the corporate bond may fall.



Thanks for any help, Nick Rowlands.


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D

No, the reverse - it maximised your actual investment in the *mini* ISA after charges. Maxi ISA allows £7,000.

Yes under the Inland Revenue rules. If the company doesn't allow it or is inflexible or has poor alternatives, consider transferring.

I haven't paid much attention but I get the impression they've outperformed over the last few years.

Daytona

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J

In message , Daytona writes

But those companies that have an explicit charge, as opposed to an implicit charge within a bid/offer spread, allow you to pay the charges separately so in this case if Standard Life worked that way (which they dont) then the OP could have written a cheque to Standard Life for £3092.78.

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J

I guess it depends where you think interest rates are going to go. A lot of people think they have reached the low water mark. I'm not really sure where they will go from here.

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