The Lemon Fool

AleisterCrowley wrote:

JohnEdwards wrote:I use Premier Miton Money Market funds in my SIPP through HL with no problem.

Have you got the ISIN, can't see them on filter?

Found it (I think) now.

AleisterCrowley wrote:I'm losing what enthusiasm I had.... I may just take the risk of being concentrated in the Royal London fund (it is the cheapest)

Somebody did a study of the performance of the various money market funds in market hiccups and RL came out well. Putting half your money in a dodgier fund may not be a good idea. Do lots of research before parting with your money. Have you looked at the Vanguard fund?

Which one?

AleisterCrowley wrote:

AleisterCrowley wrote:Have you got the ISIN, can't see them on filter?

Found it (I think) now.

Ongoing charge 0.26% with is the expensive end. I'm sure HSDL can find a reason to not sell them to me also

Income units: GB00B8HDQ548
Acc units: GB00BTHH0F18

They came up on a search on HL's website for UK money Market funds. I think they are a little on the spicy side in terms of what they invest in - but the return seems to recognise that.

AleisterCrowley wrote:Which one?

Vanguard Sterling Short-Term Money Market Fund:

https://www.vanguardinvestor.co.uk/inve ... s/overview

Thanks. The research continues!

AleisterCrowley wrote:Thanks. The research continues!

As far as HSDL goes the research is pretty quick! Going to https://www.investments.halifax.co.uk/funds-centre/ and selecting IA Short Term Money Market for Sector gives just two funds: BlackRock Cash and Royal London Short Term Money Market (3 classes of the 1st and two of the 2nd).

When I tried that a few weeks back I also got the Fidelity ones 'Fidelity Cash W Acc' and the distributing version, and L&G
L&G Cash Trust I Acc GB00B0CNHB64
Fidelity Cash W Acc GB00BD1RHT82

It seems most (all?) of these short term Money Market instruments are Funds, although I did come across one where it was suggested to be a Trust, however it was still listed under funds within the selection tool. Otherwise there are one or two ETFs. Some are 'accumulation' and some 'income'.

Assuming not held in a tax wrapper, can anyone give a quick overview of the UK tax position please?

I assume there must be no SDRT raised anywhere with these and that all income would be classed as interest (non-equity fund 60% rule). Would it be correct to assume that the general intent is that all investment returns would be income and there would be no (or almost no) capital gains involved?

Hence, if one held income units, one would declare the income as interest at the date received and perhaps make a minor CG adjustment when one bought or sold? (Is income accrued or do they trade at the 'dirty' price?)

Or if holding accumulation units, presumably one could pretty much take the difference between the buy and sell values and declare that as interest at the date of sale (or settlement) and any CG would be limited to broker fees?

BobGe wrote:Or if holding accumulation units, presumably one could pretty much take the difference between the buy and sell values and declare that as interest at the date of sale (or settlement) and any CG would be limited to broker fees?

Assuming it's held outside of a SIPP or ISA, you would expect the Broker to notify you of notional income distributions on accumulation units, as they would for any OEIC whether interest or dividend.