Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

Legal & General trackers moving to Fidelity for administration

Index tracking funds and ETFs
Clariman
Lemon Quarter
Posts: 3268
Joined: November 4th, 2016, 12:17 am
Has thanked: 3077 times
Been thanked: 1557 times

Legal & General trackers moving to Fidelity for administration

#410227

Postby Clariman » May 8th, 2021, 11:04 am

We have some old Legal & General Index Tracker ISAs which are managed and administered by L&G themselves. They are moving the administration of these to Fidelity. Is that a good, bad or benign thing?

I have used Hargreaves Lansdown for some later equity ISAs and Mrs C has some in iWeb. Is it possible - and would it be better - to move those investments to HL and iWeb?

To be honest, I don't fully understand the roles that all these different organisations play and what my options are. For example if I moved the L&G ISAs to HL administration, could I move the ISA money out of L&G funds into my Vanguard funds while retaining their ISA status?

Thanks
C

GeoffF100
Lemon Quarter
Posts: 4720
Joined: November 14th, 2016, 7:33 pm
Has thanked: 178 times
Been thanked: 1363 times

Re: Legal & General trackers moving to Fidelity for administration

#410231

Postby GeoffF100 » May 8th, 2021, 11:20 am

Clariman wrote:To be honest, I don't fully understand the roles that all these different organisations play and what my options are. For example if I moved the L&G ISAs to HL administration, could I move the ISA money out of L&G funds into my Vanguard funds while retaining their ISA status?

Yes, you can sell the L&G funds and buy Vanguard funds with the proceeds. HL and Fidelity both charge an arm and a leg for holding open ended funds: OEICs and unit trusts. If you want to hold those rather than ETFs, you would be better off moving to iWeb (or one of the other Halifax brands) or Interactive Investor. If your accounts are small, the Vanguard platform would also be an option. Here is a broker comparison:

https://monevator.com/compare-uk-cheape ... e-brokers/

Clariman
Lemon Quarter
Posts: 3268
Joined: November 4th, 2016, 12:17 am
Has thanked: 3077 times
Been thanked: 1557 times

Re: Legal & General trackers moving to Fidelity for administration

#410232

Postby Clariman » May 8th, 2021, 11:21 am

GeoffF100 wrote:
Clariman wrote:To be honest, I don't fully understand the roles that all these different organisations play and what my options are. For example if I moved the L&G ISAs to HL administration, could I move the ISA money out of L&G funds into my Vanguard funds while retaining their ISA status?

Yes, you can sell the L&G funds and buy Vanguard funds with the proceeds. HL and Fidelity both charge an arm and a leg for holding open ended funds: OEICs and unit trusts. If you want to hold those rather than ETFs, you would be better off moving to iWeb (or one of the other Halifax brands) or Interactive Investor. If your accounts are small, the Vanguard platform would also be an option. Here is a broker comparison:

https://monevator.com/compare-uk-cheape ... e-brokers/

Thanks. And would they still retain their ISA status if I sold and bought?

GeoffF100
Lemon Quarter
Posts: 4720
Joined: November 14th, 2016, 7:33 pm
Has thanked: 178 times
Been thanked: 1363 times

Re: Legal & General trackers moving to Fidelity for administration

#410233

Postby GeoffF100 » May 8th, 2021, 11:25 am

Clariman wrote:
GeoffF100 wrote:
Clariman wrote:To be honest, I don't fully understand the roles that all these different organisations play and what my options are. For example if I moved the L&G ISAs to HL administration, could I move the ISA money out of L&G funds into my Vanguard funds while retaining their ISA status?

Yes, you can sell the L&G funds and buy Vanguard funds with the proceeds. HL and Fidelity both charge an arm and a leg for holding open ended funds: OEICs and unit trusts. If you want to hold those rather than ETFs, you would be better off moving to iWeb (or one of the other Halifax brands) or Interactive Investor. If your accounts are small, the Vanguard platform would also be an option. Here is a broker comparison:

https://monevator.com/compare-uk-cheape ... e-brokers/

Thanks. And would they still retain their ISA status if I sold and bought?

Yes, provided that you sell and re-buy within the ISA, and do not withdraw the money from it.

GeoffF100
Lemon Quarter
Posts: 4720
Joined: November 14th, 2016, 7:33 pm
Has thanked: 178 times
Been thanked: 1363 times

Re: Legal & General trackers moving to Fidelity for administration

#410236

Postby GeoffF100 » May 8th, 2021, 11:55 am

It is very important to understand that you need to transfer the ISAs, and not withdraw the money and open an account with another platform. The usual procedure for doing that is to open an account with another platform, and request the transfer with the provider of that platform. You will need to check that the receiving platform can hold the funds that you want to transfer. You would would have a problem with transferring to Vanguard (unless L&G can hold Vanguard funds). You would have to sell into cash, and potentially wait months for the transfer to complete. That would not be good.

JohnB
Lemon Quarter
Posts: 2497
Joined: January 15th, 2017, 9:20 am
Has thanked: 677 times
Been thanked: 997 times

Re: Legal & General trackers moving to Fidelity for administration

#410296

Postby JohnB » May 8th, 2021, 3:40 pm

In charges terms, its best to stay clear of the generic term "fund". Best to think of ETF/OEIC/Unit Trust/Investment Trust. Index trackers come in the first 2 flavours. You can hold both in ISAs, HL will charge more for the latter than the former. Inside an ISA with no tax reporting worries, look for accumulating units, ACC to save worrying about reinvestment.

Once you've decided on an index and platform, then the fun is finding which of Vanguard, Blackrock, Fidelity etc does an ACC ETF or OEIC and appears on the platform. It can be pot-luck, and I've ended up with ETF and OEIC, and any of those managers on my IWeb and HL accounts. They all seem equally good, and I manage to pay only £200 for large ISA/SIPP/unsheltered holdings.

The key thing to check is what charges will the L&G funds have under Fidelity administration. If more than 0.1% for famous indexes, and 0.2% for smaller ones, then its worth shopping around.

Alaric
Lemon Half
Posts: 6033
Joined: November 5th, 2016, 9:05 am
Has thanked: 20 times
Been thanked: 1399 times

Re: Legal & General trackers moving to Fidelity for administration

#410337

Postby Alaric » May 8th, 2021, 6:58 pm

Clariman wrote:We have some old Legal & General Index Tracker ISAs which are managed and administered by L&G themselves. They are moving the administration of these to Fidelity.


It's perhaps clearer to think of what you currently hold as being in two parts. You have a Legal & General ISA which contains holdings of Legal & General Index Tracker funds (OEICs presumably). For the future it is proposed that you will have a Fidelity ISA containing holdings of Legal & General Index Tracker OEICs.

Presuming that you are on Fidelity's standard terms, you should have access to all the investments allowed by Fidelity in their ISA. This may or may not include Vanguard OEICs and ETFs. As someone else suggested, watch out for fees charged directly as a percentage of value. That's over and above the fees that are extracted as part of price performance.

It's possible to transfer from one ISA manager to another. The process is always started by contacting the ISA manager you want to transfer to.

dubre
2 Lemon pips
Posts: 124
Joined: November 4th, 2016, 2:41 pm
Has thanked: 205 times
Been thanked: 54 times

Re: Legal & General trackers moving to Fidelity for administration

#475103

Postby dubre » January 21st, 2022, 3:22 pm

" HL and Fidelity both charge an arm and leg for holding open ended funds"

What about selling the open ended fund within the Fidelity ISA and buying the nearest equivalent exchange traded version in order to get the capped £45 charge? For example: Fidelity Index UK class p looks to be a very cheap tracker ignoring platform charges? is there a near equivalent?

GeoffF100
Lemon Quarter
Posts: 4720
Joined: November 14th, 2016, 7:33 pm
Has thanked: 178 times
Been thanked: 1363 times

Re: Legal & General trackers moving to Fidelity for administration

#475110

Postby GeoffF100 » January 21st, 2022, 3:34 pm

dubre wrote:What about selling the open ended fund within the Fidelity ISA and buying the nearest equivalent exchange traded version in order to get the capped £45 charge? For example: Fidelity Index UK class p looks to be a very cheap tracker ignoring platform charges? is there a near equivalent?

The cheapest appears to be Lyxor Core Morningstar UK ETF at 0.04% OCF:

https://www.youinvest.co.uk/market-research/LSE:LCUK


Return to “Passive Investing”

Who is online

Users browsing this forum: Gerry557 and 10 guests