I'd like to know about an equivalent alternative fund to one I already hold.
27 April 2021
Question by Lily
Hello, I have a stocks and shares ISA with Legal and General Investment whose administration is being transferred to Fidelity in June this Year. I hold a L&G multi index 6 fund (R) accumulator and would like to transfer to my AJ Bell ISA but can’t see it listed so would like to know if there is an equivalent alternative fund instead.
Answered by Tim Blowers
Hi Lily, the good thing is with an ISA you have the option of selling the fund and transferring the ISA as cash, if a provider doesn’t offer the fund. There wouldn’t be tax to pay on selling this fund as it’s in an ISA. This does however mean you could sell it right before things jump up so transferring without selling (or “in-specie”) can be sensible although it does usually take a bit longer.
Fidelity have said that the fees won’t change for the first 12 months after the move from L&G, so you’ll have time to make changes if needed. It’s worth checking if there’s any discount to the fund charges when it moves to Fidelity. There is a version of the L&G Multi Index 6 fund that has lower charges. You are currently in the R class (retail class) which has an ongoing charge of 0.61% a year, Fidelity may convert you to the I class (Institutional) which is 0.31% a year.
If you’re looking to stay in same fund, the I class is the one available with AJ Bell, one useful way to look for funds is using a unique reference known as an ISIN, for the Legal & General Multi-Index 6 Fund I Class Accumulation fund it is GB00B95KML23. Might find it useful when searching?
Other than that it’s checking whether AJ Bell or Fidelity will be cheaper/better for you based on your plans going forward. You might benefit from a lower fee if combining fees.
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Tim has always wanted to help people and his psychology background has allowed him to combine a love of numbers and understanding behaviours in financial planning, with various degrees and qualifications to prove it. Tim is a born and bred Bristolian and other than a couple of stints further north as part of University degrees, has lived in various parts of his fantastic hometown his whole life.