James Coney  

A balanced portfolio will always win out

James Coney

James Coney

It is dreadfully confusing – and we have got ourselves into a right mess.

The other day The Sunday Times revealed that Hargreaves Lansdown customers in D Class shares of the Lindsell Train Global Equity fund could not transfer to some providers, because the share class was no longer being accepted.

D class, it turns out, is the reduced price share class that HL offers.

Normally what happens in a transfer is that the class is simply moved into another at a rival provider with a new fee applying.

This type of restriction, though, is damaging.

The share class confusion starts at the point of sale, where investors can have six or even eight different versions to pick from.

At no point is there ever an explanation of which one is best – you are just expected to know.

And there is no point waiting for the Financial Conduct Authority to sort it out, it could take them years to get round to it.

Investment for life

Uh-oh, it could be trouble ahead for the Lifetime Isa. Investors have paid £1min fines already, a Freedom of Information request reveals.

This will be from young people who never realised they could not freely tap the money.

Those who are championing early access to pensions should have a careful look at behaviours in the Lifetime Isa and realise the dangers.

James Coney is money editor of the Sunday Times