Hoping somebody here can help me with sorting out my portfolio.
I have about £300k on Hargreaves Lansdown: £160k in a regular Fund & Share account, £73k in a F&S ISA, both mostly all invested in OEICs tracking the S&P and European equities. The rest is held in a cash saver.
I’ve belatedly realized, however, that H&L’s fee structure penalizes OEICs, as you incur a 0.45% charge on your holdings, while ETF fees are capped at £45. This means I’m now paying almost £800 in annual fees, which seems like it will be a big drag on future gains.
So I want to convert all my OEICs into similar ETFs, but closing my positions would incur a hefty capital gain at this point. I asked a H&L advisor if I could swap between fund types without incurring a taxable event, and they said that wasn’t possible (though I saw on reddit somebody else saying H&L allowed them to when they threatened to leave.)
Other option is to transfer my OEICs to a service with lower flat fees.
So any tips? Do I stick with what I’m doing, and avoid the taxable event, or bite the bullet and avoid ever-rising fees.
Thanks!
I have about £300k on Hargreaves Lansdown: £160k in a regular Fund & Share account, £73k in a F&S ISA, both mostly all invested in OEICs tracking the S&P and European equities. The rest is held in a cash saver.
I’ve belatedly realized, however, that H&L’s fee structure penalizes OEICs, as you incur a 0.45% charge on your holdings, while ETF fees are capped at £45. This means I’m now paying almost £800 in annual fees, which seems like it will be a big drag on future gains.
So I want to convert all my OEICs into similar ETFs, but closing my positions would incur a hefty capital gain at this point. I asked a H&L advisor if I could swap between fund types without incurring a taxable event, and they said that wasn’t possible (though I saw on reddit somebody else saying H&L allowed them to when they threatened to leave.)
Other option is to transfer my OEICs to a service with lower flat fees.
So any tips? Do I stick with what I’m doing, and avoid the taxable event, or bite the bullet and avoid ever-rising fees.
Thanks!