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Finances / Finanzen » uk.finance » FTSE tracking ISA advice
| FTSE tracking ISA advice [message #383112] |
Mo, 24 April 2006 11:03 |
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Hi all,
I'm looking to invest a regular amount of money (about £50 a month at the
moment) into a FTSE tracker ISA. It is with the intention of being a long
term investment, at least 5-10 years, with the expectation that it will
continue longer term than that. I'm looking for advice on the best tracker
(i.e. one from a company that is well administered, easy to deal with and
has low charges). I'm a customer with the Halifax and would prefer to stick
with them for the ease of logging into one place to keep track of all my
money, but this is not essential. I have not currently invested any money
into any form of ISA this year.
If it helps, I am a civil servant and a member of the prospect union, which
seems to favour Liverpool Victoria for financial matters. Due to my job it
is difficult to get onto the civil service portal, hence the request for
advice.
Anyone able to point me in the direction of the best deal? Checking on fool
shows L&G and Fidelity, with Fidelity offering the lowest charges. Are
there any better companies to go with/
Thanks in advance for your help!
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| Re: FTSE tracking ISA advice [message #383204 ] |
Mo, 24 April 2006 23:19 |
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Bitstring <4b3iifFuroqiU1 [at] individual.net>, from the wonderful person
Simon Finnigan <simonfinnigan [at] hotmail.com> said
>Hi all,
>I'm looking to invest a regular amount of money (about £50 a month at the
>moment) into a FTSE tracker ISA. It is with the intention of being a long
>term investment, at least 5-10 years, with the expectation that it will
>continue longer term than that. I'm looking for advice on the best tracker
>(i.e. one from a company that is well administered, easy to deal with and
>has low charges). I'm a customer with the Halifax and would prefer to stick
>with them for the ease of logging into one place to keep track of all my
>money, but this is not essential. I have not currently invested any money
>into any form of ISA this year.
>
>If it helps, I am a civil servant and a member of the prospect union, which
>seems to favour Liverpool Victoria for financial matters. Due to my job it
>is difficult to get onto the civil service portal, hence the request for
>advice.
>
>Anyone able to point me in the direction of the best deal? Checking on fool
>shows L&G and Fidelity, with Fidelity offering the lowest charges. Are
>there any better companies to go with/
You may find even lower charges on the Edinburgh Fund Managers UK
Tracker Investment Trust - the downside being that the shares can sell
at a discount to NAV (or indeed a premium). However do you really want a
tracker .. cheap, yes, since a tracker can be adequately managed by a
mentally impaired rodent, however you =will= have invested in all the
large, overpriced, companies which subsequently come a cropper - even it
you track the FTSE all share, an unreasonable proportion is in half a
dozen large companies. If you track the FTSE 100 it's even worse.
--
GSV Three Minds in a Can
Google may be your friend, but groups.google.com posters definitely aren't.
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| Re: FTSE tracking ISA advice [message #383206 ] |
Di, 25 April 2006 00:33 |
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"GSV Three Minds in a Can" <GSV [at] quik.clara.co.uk> wrote in message
news:ccIvUtEfDUTEFAg1 [at] from.is.invalid...
> Bitstring <4b3iifFuroqiU1 [at] individual.net>, from the wonderful person Simon
> Finnigan <simonfinnigan [at] hotmail.com> said
>>Hi all,
>>I'm looking to invest a regular amount of money (about £50 a month at the
>>moment) into a FTSE tracker ISA. It is with the intention of being a long
>>term investment, at least 5-10 years, with the expectation that it will
>>continue longer term than that. I'm looking for advice on the best
>>tracker
>>(i.e. one from a company that is well administered, easy to deal with and
>>has low charges). I'm a customer with the Halifax and would prefer to
>>stick
>>with them for the ease of logging into one place to keep track of all my
>>money, but this is not essential. I have not currently invested any money
>>into any form of ISA this year.
>>
>>If it helps, I am a civil servant and a member of the prospect union,
>>which
>>seems to favour Liverpool Victoria for financial matters. Due to my job
>>it
>>is difficult to get onto the civil service portal, hence the request for
>>advice.
>>
>>Anyone able to point me in the direction of the best deal? Checking on
>>fool
>>shows L&G and Fidelity, with Fidelity offering the lowest charges. Are
>>there any better companies to go with/
>
> You may find even lower charges on the Edinburgh Fund Managers UK Tracker
> Investment Trust - the downside being that the shares can sell at a
> discount to NAV (or indeed a premium). However do you really want a
> tracker .. cheap, yes, since a tracker can be adequately managed by a
> mentally impaired rodent, however you =will= have invested in all the
> large, overpriced, companies which subsequently come a cropper - even it
> you track the FTSE all share, an unreasonable proportion is in half a
> dozen large companies. If you track the FTSE 100 it's even worse.
What alternatvies would you suggest for this kind of level of investment? I
don't have the spare time to put the effort in to study the markets ooking
for the next fantastic buy - essentially I need something to pay into
regularly and make a reasonable level of profit in over the long term. It
seems to me that most managed funds don;t manage to match te performance of
a tracker :-)
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| Re: FTSE tracking ISA advice [message #383211 ] |
Di, 25 April 2006 00:44 |
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GSV Three Minds in a Can <GSV [at] quik.clara.co.uk> wrote:
[]
> You may find even lower charges on the Edinburgh Fund Managers UK
> Tracker Investment Trust - the downside being that the shares can sell
> at a discount to NAV (or indeed a premium). However do you really want a
> tracker .. cheap, yes, since a tracker can be adequately managed by a
> mentally impaired rodent, however you =will= have invested in all the
> large, overpriced, companies which subsequently come a cropper - even it
> you track the FTSE all share, an unreasonable proportion is in half a
> dozen large companies. If you track the FTSE 100 it's even worse.
I found an old _IC_ from Feb 1999, the other day - 895 GPB/tonne, vs
3216 GPB/tonne.
Oh wait, I thought you said "come a copper".. ;->
'twas interesting 'tho - FTSE at 5834, p/e of 23.7 yield 2.76 compared
with 6024, p/e 12.9, yield 3.08, err, 7th April this year.
rgds, Alan
--
99 Ducati 748BP, 95 Ducati 600SS, 81 Guzzi Monza, 74 MV Agusta 350
"Ride to Work, Work to Ride" SI# 7.067 DoD#1930 PGP Key 0xBDED56C5
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| Re: FTSE tracking ISA advice [message #383212 ] |
Di, 25 April 2006 00:47 |
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In message <4b3iifFuroqiU1 [at] individual.net>, Simon Finnigan
<simonfinnigan [at] hotmail.com> writes
>Hi all,
>I'm looking to invest a regular amount of money (about £50 a month at the
>moment) into a FTSE tracker ISA.
Why a tracker? And which FTSE index? You will be investing in mediocrity
in any event.
> It is with the intention of being a long
>term investment, at least 5-10 years,
In investment terms that is only a 'medium' term.
>with the expectation that it will
>continue longer term than that.
Good.
> I'm looking for advice on the best tracker
>(i.e. one from a company that is well administered, easy to deal with and
>has low charges). I'm a customer with the Halifax and would prefer to stick
>with them for the ease of logging into one place to keep track of all my
>money, but this is not essential. I have not currently invested any money
>into any form of ISA this year.
If you want to invest in a tracker (which I think is a flawed decision)
then charges are irrelevant, what you need to look for is whether the
tracker actually tracks what you want it to track. The charges it
applies are of no consequence. Just look at the post charges tracking
error. I.e. after the managers have nicked your dosh, does it still
track the index you wanted it to track?
>
>If it helps, I am a civil servant and a member of the prospect union, which
>seems to favour Liverpool Victoria for financial matters.
Yes, its one of those 'were a mutual union so we will do a deal with a
mutual company. Sod their performance' sort of arrangements. Prospect
are not (AFAIAA) authorised to give advice by the FSA.
> Due to my job it
>is difficult to get onto the civil service portal, hence the request for
>advice.
>
>Anyone able to point me in the direction of the best deal? Checking on fool
>shows L&G and Fidelity, with Fidelity offering the lowest charges. Are
>there any better companies to go with/
There you are bothered about charges again! Have a look at the actual
performance of the two companies you mention. I assume you mean the L&G
UK Index and the Fidelity Moneybuilder UK Index. Have a close look at
the performance of each fund, net of charges, and the answer will reveal
itself. In fact the fidelity fund is slightly misnamed in so far as its
objects are to attempt to track the all share index but not by mimicking
it, and it does so by managing a mainstream balanced portfolio without
over exposing you to just a few stocks. By comparison with other funds
that do the same thing but without the word 'index' in the name, it is a
mediocre performer..
Are you sure you want a 'tracker'? I.e. something that tracks the good
stocks and the bad ones?
--
John Boyle
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| Re: FTSE tracking ISA advice [message #383213 ] |
Di, 25 April 2006 00:53 |
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In message <4b521gFva6kcU1 [at] individual.net>, Simon Finnigan
<simonfinnigan [at] hotmail.com> writes
>What alternatvies would you suggest for this kind of level of investment?
I refer to my previous pasts over the last 12 years and will quote the
very same names.
Jupiter Income & Invesco Perpetual Income amongst very many worthy
others.
These are not 'flavours of the month' but the same funds that I have
named here over the last decade.
> I
>don't have the spare time to put the effort in to study the markets ooking
>for the next fantastic buy - essentially I need something to pay into
>regularly and make a reasonable level of profit in over the long term. It
>seems to me that most managed funds don;t manage to match te performance of
>a tracker :-)
If you remove all those funds that are either low riosk or 'balanced'
funds (which dont attempt to match the volatility of the market as a
whole. Then remove almost all of the funds managed by banks or insurance
companies, then remove all those funds which dont invest in the UK stock
market anyway (i.e. fixed interest & bond funds, cash fund, and those
hundreds of funds that invest outside UK) you are left with less than
10% of all the funds available. These remaining funds are generally
consistent over the medium term in so far as they soundly beat the
indices that measure the market in which they invest.
--
John Boyle
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| Re: FTSE tracking ISA advice [message #383214 ] |
Di, 25 April 2006 00:54 |
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In message <1hebo7c.r5kwxi1cw4wlcN%alan.frame [at] acm.org>, Alan Frame
<alan.frame [at] acm.org> writes
>'twas interesting 'tho - FTSE at 5834, p/e of 23.7 yield 2.76 compared
>with 6024, p/e 12.9, yield 3.08, err, 7th April this year.
Yes, quite mediocre compared with what was also available throughout
that period.
--
John Boyle
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| Re: FTSE tracking ISA advice [message #383217 ] |
Di, 25 April 2006 01:22 |
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On Mon, 24 Apr 2006 10:03:16 +0100, "Simon Finnigan"
<simonfinnigan [at] hotmail.com> wrote:
>Hi all,
>I'm looking to invest a regular amount of money (about £50 a month at the
>moment) into a FTSE tracker ISA. It is with the intention of being a long
>term investment, at least 5-10 years, with the expectation that it will
>continue longer term than that. I'm looking for advice on the best tracker
>(i.e. one from a company that is well administered, easy to deal with and
>has low charges). I'm a customer with the Halifax and would prefer to stick
>with them for the ease of logging into one place to keep track of all my
>money, but this is not essential. I have not currently invested any money
>into any form of ISA this year.
>
>If it helps, I am a civil servant and a member of the prospect union, which
>seems to favour Liverpool Victoria for financial matters. Due to my job it
>is difficult to get onto the civil service portal, hence the request for
>advice.
>
>Anyone able to point me in the direction of the best deal? Checking on fool
>shows L&G and Fidelity, with Fidelity offering the lowest charges. Are
>there any better companies to go with/
>
>Thanks in advance for your help!
>
You should have a look at the Motley Fool website. They have very
useful articles and comparison charts for Isas www.fool.co.uk
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| Re: FTSE tracking ISA advice [message #383221 ] |
Di, 25 April 2006 02:38 |
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john boyle <john [at] johnboyle1.demon.co.uk> wrote:
> <alan.frame [at] acm.org> writes
[Feb1999]
> >'twas interesting 'tho - FTSE at 5834, p/e of 23.7 yield 2.76 compared
> >with 6024, p/e 12.9, yield 3.08, err, 7th April this year.
>
> Yes, quite mediocre compared with what was also available throughout
> that period.
You probably have a longer memory than me, but my two thoughts were"
"Yeah, the FTSE is in danger of being overpriced at 6100, err, wait a
minute!"
and
"Interest rates are low, and shares have gone up loads, so the yield is
carp - hang on, hmm..."
I'm now enlightened as to why indices on their own aren't terribly
usefull.
rgds, Alan
--
99 Ducati 748BP, 95 Ducati 600SS, 81 Guzzi Monza, 74 MV Agusta 350
"Ride to Work, Work to Ride" SI# 7.067 DoD#1930 PGP Key 0xBDED56C5
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| Re: FTSE tracking ISA advice [message #383233 ] |
Di, 25 April 2006 10:47 |
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"john boyle" <john [at] johnboyle1.demon.co.uk> wrote in message
news:Epbrw6F3VVTEFwAI [at] johnboyle1.demon.co.uk...
> There you are bothered about charges again! Have a look at the actual
> performance of the two companies you mention. I assume you mean the L&G UK
> Index and the Fidelity Moneybuilder UK Index. Have a close look at the
> performance of each fund, net of charges, and the answer will reveal
> itself. In fact the fidelity fund is slightly misnamed in so far as its
> objects are to attempt to track the all share index but not by mimicking
> it, and it does so by managing a mainstream balanced portfolio without
> over exposing you to just a few stocks. By comparison with other funds
> that do the same thing but without the word 'index' in the name, it is a
> mediocre performer..
>
> Are you sure you want a 'tracker'? I.e. something that tracks the good
> stocks and the bad ones?
IF trackers are such a bad idea, firstly can you please suggest something
better, and secondly why does fool.co.ul, which seems to be held in high
regard by most of the posters here, make them sound to be pretty much the
perfect investment? :-)
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| Re: FTSE tracking ISA advice [message #383234 ] |
Di, 25 April 2006 10:50 |
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"Simon Finnigan" <simonfinnigan [at] hotmail.com> wrote in message
news:4b3iifFuroqiU1 [at] individual.net...
> Hi all,
> I'm looking to invest a regular amount of money (about £50 a month at the
> moment) into a FTSE tracker ISA. It is with the intention of being a long
> term investment, at least 5-10 years, with the expectation that it will
> continue longer term than that. I'm looking for advice on the best
> tracker (i.e. one from a company that is well administered, easy to deal
> with and has low charges). I'm a customer with the Halifax and would
> prefer to stick with them for the ease of logging into one place to keep
> track of all my money, but this is not essential. I have not currently
> invested any money into any form of ISA this year.
>
> If it helps, I am a civil servant and a member of the prospect union,
> which seems to favour Liverpool Victoria for financial matters. Due to my
> job it is difficult to get onto the civil service portal, hence the
> request for advice.
>
> Anyone able to point me in the direction of the best deal? Checking on
> fool shows L&G and Fidelity, with Fidelity offering the lowest charges.
> Are there any better companies to go with/
>
> Thanks in advance for your help!
Further to the above, I also have slightly over £3k from last years ISA
(currently a cash isa at 3.75% IIRC) that I'd like to move to somewhere
offering a better rate. Any better suggestions than the Halifax fixed 5%
ISA?
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| Re: FTSE tracking ISA advice [message #383248 ] |
Di, 25 April 2006 11:53 |
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In message <4b6601Fvrrs1U1 [at] individual.net>, Simon Finnigan
<simonfinnigan [at] hotmail.com> writes
>IF trackers are such a bad idea, firstly can you please suggest something
>better,
Yes, go for a 'Bottom Up' 'Stock Picking' Unit Trusts or OEICs with
consistent performance. Go via a fund supermarket such as Fidelity or
Skandia and put a few funds in the ISA. Look at (for example) Invesco
Pepetual Income, Jupiter Income etc., amongst others. These are funds
which I have promoted here for over ten years so their performance is
not just a flash in the pan.
> and secondly why does fool.co.ul, which seems to be held in high
>regard by most of the posters here, make them sound to be pretty much the
>perfect investment? :-)
Well the name of the site gives some indication ! :-)
--
John Boyle
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| Re: FTSE tracking ISA advice [message #383298 ] |
Di, 25 April 2006 15:46 |
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I'd broadly agree with you, but for 50 pounds per month I'd look for an
investment trust saving scheme which would give low charges and would
still allow the choice of a number of trusts with excellent long-term
performance. I'm thinking of RIT capital partners, British Empire
Securities and the like. I don't know what the minimum investment is
for them these days but it used to be around =A350. (Personally I would
shop around as many of the good ITs like RIT are at a notional premium
at the moment - but I like to buy ITs when they are undervalued).
You could even do with via Halifax using the share builder scheme. The
flat charge is =A31.50 per trade so monthly it works out as 3% for any
investment trust - most of the saving schemes charge 1% to buy or sell.
Halifax would charge somewherea round =A35-15 to sell the entire holding
(so could be cheaper at that end). If you invested quarterly you'd pay
=A31.50 for 150 pounds so would equal the charges most of the saving
scheme rates.
Thom
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| Re: FTSE tracking ISA advice [message #383410 ] |
Mi, 26 April 2006 09:50 |
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The minimum for British Empire Securities is =A3100 per month (so is RIT
I think).
Caldedonia will accept =A350 per month, but as they are trading at over
=A320 per share right now, it is starting to look a bit expensive.
Neil.
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| Re: FTSE tracking ISA advice [message #383528 ] |
Do, 27 April 2006 00:45 |
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On Tue, 25 Apr 2006 09:47:02 +0100, "Simon Finnigan"
<simonfinnigan [at] hotmail.com> wrote:
>IF trackers are such a bad idea, firstly can you please suggest something
>better, and secondly why does fool.co.ul, which seems to be held in high
>regard by most of the posters here, make them sound to be pretty much the
>perfect investment? :-)
Go back to TMF and read the High Yield Portfolio discussion board.
--
Terry Harper
URL: http://www.btinternet.com/~terry.harper/
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