HL - sipp transfer - heads up

[ukwill]

I recently moved the contents of my SIPP from HL to II (the annual cost difference was too much to disregard). Have just been told by II that Lindsell Train "D" Class transfers have been blocked. My only options are:

Sell & transfer over as cash
Leave invested with HL
Switch to a different LT Stock & complete transfer

Not majorly happy about this news. Seems that Link Fund Solutions are doing what they did to Woodford investors.

[Mr Pointy]

Have you asked HL & II why the transfer has been blocked? Do II actually trade in Lindsell Train on their platform?

[JulianPH]

This is nothing like the Woodford situation.

II appear not to meet the criteria of a minimum of £200m for the D class of this fund (which surprises me).

You would have to sell this fund to cash at HL and then transfer the cash over to II and buy the B class version.

This has a higher AMC (0.65% rather than 0.5%) but as you are paying the II account/plan fees anyway you should still be better off after losing the 0.45% HL fee.

You can read more about this here:

https://portfolio-adviser.com/lindsell-train-200m-...

[drmotorsport]

Nothing to do with Woodford/Link. I believe that some of Lindsell Train funds sold on HL are 'special deals' for HL customers only and so can't be transferred of the platform.

[LeoSayer]

I had similar with an ISA transfer recently.

Just sell, transfer cash and buy back. It's a bit more hassle than a transfer but an easy workaround for the transfer block.

[springfan62]

ukwill said:

I recently moved the contents of my SIPP from HL to II (the annual cost difference was too much to disregard). Have just been told by II that Lindsell Train "D" Class transfers have been blocked. My only options are:

Sell & transfer over as cash
Leave invested with HL
Switch to a different LT Stock & complete transfer

Not majorly happy about this news. Seems that Link Fund Solutions are doing what they did to Woodford investors.

I had a similar issue last year with a HL to II transfer, it took ages and then quite a few funds had to be sold and transferred as cash.
In the end I should have just done it the cash way straight away it would have been simpler.

[LeoSayer]

springfan62 said:

I had a similar issue last year with a HL to II transfer, it took ages and then quite a few funds had to be sold and transferred as cash.
In the end I should have just done it the cash way straight away it would have been simpler.

I preferred to transfer because my old provider charged £25 rather than 1% to sell.

[ukwill]

Thanks all.

I’m not happy because II also have Class D on their platform, so I don’t see why I have to trade out of the same class on HL. This is the only fund I’ve not been able to do an in-specie transfer for. A couple of months ago HL did not have this restriction.

[JulianPH]

ukwill said:

Thanks all.

I’m not happy because II also have Class D on their platform, so I don’t see why I have to trade out of the same class on HL. This is the only fund I’ve not been able to do an in-specie transfer for. A couple of months ago HL did not have this restriction.

To be fair to HL (and their transfer process is the worse I have ever come across) and II, this is all down to Lindsell Train enforcing the £200m minimum for Class D.

I am very surprised II don't already £200m of collective client money in this fund, but evidently they appear to not have.

[Mr Pointy]

ukwill said:

I’m not happy because II also have Class D on their platform, so I don’t see why I have to trade out of the same class on HL. This is the only fund I’ve not been able to do an in-specie transfer for. A couple of months ago HL did not have this restriction.

Are you sure you can actually buy the Class D fund on II? The article dated July 15th quotes LT as saying they cannot becasue they are too small.

[ukwill]

Mr Pointy said:

Are you sure you can actually buy the Class D fund on II? The article dated July 15th quotes LT as saying they cannot becasue they are too small.

Yes I believe so - when I search on the app I can buy the Class D fund - code BJSPMJ2

[Mr Pointy]

ukwill said:

Mr Pointy said:

Are you sure you can actually buy the Class D fund on II? The article dated July 15th quotes LT as saying they cannot becasue they are too small.

Yes I believe so - when I search on the app I can buy the Class D fund - code BJSPMJ2

But have you actually managed to successfully complete the transaction?

I had a brief look on the II website but I couldn't see any referecne to what value of client funds they were looking after.

[ukwill]

Mr Pointy said:

But have you actually managed to successfully complete the transaction?

I had a brief look on the II website but I couldn't see any referecne to what value of client funds they were looking after.

No - HL wont allow me to complete my in-specie sipp transfer (2mths ago I would have been able to). I guess I could go and buy into it from fresh (I can select the D-class fund via the app and trade it now), but that defeats the whole point of my transfer requirement (I didn't want to be out of the market). Ultimately I have no option other than to trade out / trade in. This has only happened with LT. I have a feeling that LT didn't want to see an exodus of investors from HL to other platforms (after June), having HL as part of their holdings.

Still, I'll be continuing with LT for the foreseeable future so it's all a bit meh - just me ranting.

[Mr Pointy]

ukwill said:

Mr Pointy said:

But have you actually managed to successfully complete the transaction?

I had a brief look on the II website but I couldn't see any referecne to what value of client funds they were looking after.

No - HL wont allow me to complete my in-specie sipp transfer (2mths ago I would have been able to). I guess I could go and buy into it from fresh (I can select the D-class fund via the app and trade it now), but that defeats the whole point of my transfer requirement (I didn't want to be out of the market). Ultimately I have no option other than to trade out / trade in. This has only happened with LT. I have a feeling that LT didn't want to see an exodus of investors from HL to other platforms (after June), having HL as part of their holdings.

Still, I'll be continuing with LT for the foreseeable future so it's all a bit meh - just me ranting.

It may be the case you can't actually purchase the D class when you do transfer the cash - surely II can tell you if you can?

BTW it took 30 days to transfer my HL SIPP & that included 7 days when I was out of the market. Poor show in my view.