Money Market Funds in SIPP (AJBell)

[AleisterCrowley]

As per previous post I'm looking at Money Market Funds as a possible parking place for cash
Most of the surplus is in my HSDL account but I have a smallish SIPP with AJ Bell and they have a screener tool
https://www.ajbell.co.uk/market-research/screener/funds
So- if I filter on Sector: Short Term Money Market
it brings up just four results (the ACC and INC flavours of two funds to be precise)

Fidelity Cash W Acc
Fidelity Cash W Inc
Royal London Short Term Money Mkt Y Acc
Royal London Short Term Money Mkt Y Inc

So far so good. Looking at the Overview tab the Fidelity ones have a higher OFC at 0.15% cf 0.10% for the Royal London
Then the Performance tab, all pretty much as expected - although Fidelity Cash W Inc looks a bit odd as it lags the Acc flavour in 2022 but not in previous years. The Royal London ones are in perfect lockstep, as I'd expect...

Then the puzzling one , the Prices and yields tab
This shows yields as below;

Fidelity Cash W Acc 1.81%
Fidelity Cash W Inc 2.12%
Royal London Short Term Money Mkt Y Acc 0.89%
Royal London Short Term Money Mkt Y Inc 0.90%

Where is the yield figure coming from?
Why the big difference between Fidelity and Royal London if they are effectively tracking the same thing (SONIA?)
And why the (smaller) difference between the two Fidelity flavours?

I'm somewhat confused
Cheers
AC

[Hariseldon58]

Vanguard offer a similar product , costs are .12%, has a yield of 2.54% quoted. ( The professional site rather than the retail site show’s portfolio characteristics for bond funds, ytm duration etc)

[gpadsa]

Where is the yield figure coming from?
Why the big difference between Fidelity and Royal London if they are effectively tracking the same thing (SONIA?)
And why the (smaller) difference between the two Fidelity flavours?

I don't know the answers but I'd look at historical data over a period that seems interesting to me, e.g. from 1 Jan and extrapolate that for a year

close Fidelity RL     SONIA (using Acc versions)
----- -------- --     -----
31/05 104.45   105.18
30/05                 104.49051831
03/01 102.92   103.52 102.83195494 
days  148      148    147
      1.49%    1.60%  1.61% change from 03/01
      3.67%    3.96%  4.01% change if that rate sustained for 365.25 days

rough & ready, ignoring dealing costs
Fund closing prices from FT & SONIA from https://www.bankofengland.co.uk/boeapps/database/fromshowcolumns.asp?FD=9&FM=Feb&FY=2023&TD=31&TM=Dec&TY=2025&html.x=66&html.y=26&SeriesCodes=IUDZOS2&UsingCodes=Y

gpadsa

[GeoffF100]

As per previous post I'm looking at Money Market Funds as a possible parking place for cash
Most of the surplus is in my HSDL account but I have a smallish SIPP with AJ Bell and they have a screener tool
https://www.ajbell.co.uk/market-research/screener/funds
So- if I filter on Sector: Short Term Money Market
it brings up just four results (the ACC and INC flavours of two funds to be precise)

Fidelity Cash W Acc
Fidelity Cash W Inc
Royal London Short Term Money Mkt Y Acc
Royal London Short Term Money Mkt Y Inc

So far so good. Looking at the Overview tab the Fidelity ones have a higher OFC at 0.15% cf 0.10% for the Royal London
Then the Performance tab, all pretty much as expected - although Fidelity Cash W Inc looks a bit odd as it lags the Acc flavour in 2022 but not in previous years. The Royal London ones are in perfect lockstep, as I'd expect...

Then the puzzling one , the Prices and yields tab
This shows yields as below;

Fidelity Cash W Acc 1.81%
Fidelity Cash W Inc 2.12%
Royal London Short Term Money Mkt Y Acc 0.89%
Royal London Short Term Money Mkt Y Inc 0.90%

Where is the yield figure coming from?
Why the big difference between Fidelity and Royal London if they are effectively tracking the same thing (SONIA?)
And why the (smaller) difference between the two Fidelity flavours?

I'm somewhat confused
Cheers
AC

Those numbers are wrong, or out of date. HL's prices and dividend payments appear to be correct for the RL fund. AJ Bell is not suitable for OEICs because of the swinging percentage platform fee. CSH2 appears to be the most popular money market ETF:

https://www.hl.co.uk/shares/shares-sear ... -c-gbp-uci

[AleisterCrowley]

.. AJ Bell is not suitable for OEICs because of the swinging percentage platform fee. ...

Thanks, that's interesting - I'll have to check out the fees. I'm all in cash in AJ Bell at the moment (it's recently opened)
My main cash surplus is within HSDL ISA
(at least AJ Bell pay a reasonable interest rate on cash - tiered >= 2%)

[y0rkiebar]

Looked at the Lyxor Smart Cash ETF CSH2 ? OCF of 0.07%.

[AleisterCrowley]

.. AJ Bell is not suitable for OEICs because of the swinging percentage platform fee. ...

Thanks, that's interesting - I'll have to check out the fees. I'm all in cash in AJ Bell at the moment (it's recently opened)
My main cash surplus is within HSDL ISA
(at least AJ Bell pay a reasonable interest rate on cash - tiered >= 2%)

Looks like it's 0.25% pa for AJ Bell SIPP for everything (below £250k)
https://www.ajbell.co.uk/sipp/charges-and-rates

[GeoffF100]

Thanks, that's interesting - I'll have to check out the fees. I'm all in cash in AJ Bell at the moment (it's recently opened)
My main cash surplus is within HSDL ISA
(at least AJ Bell pay a reasonable interest rate on cash - tiered >= 2%)

Looks like it's 0.25% pa for AJ Bell SIPP for everything (below £250k)
https://www.ajbell.co.uk/sipp/charges-and-rates

Yes, but it is capped at £10 per month for ETFs. For OEICs, it works out at £34 per month at £250K, and goes up beyond that, albeit at a slower rate.

[AleisterCrowley]

Yes, good point - it would certainly add up.
Is the aforementioned vanguard MMF an ETF?

[GeoffF100]

Yes, good point - it would certainly add up.
Is the aforementioned vanguard MMF an ETF?

No. It is an OEIC.

[AleisterCrowley]

Thanks again. More research required on my side as I have the HSDL, AJ Bell, and Invest Engine cash surpluses to deal with.
My grandfather dealt with his surplus by tucking it into his socks, or was that his surplice?
Such is life when one is a vicar's grandson. God bless you all, and may you have a quiet night and a perfect end