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H-L introduces a Tracker Platform Charge
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black_taxi wrote: »when it comes to investing i always go with someone with a long history
Equitable Life have been around since 1762...I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
has anyone tried rplan.co.uk?
Just had a look at their website. It's either still under construction or incredibly minimalistic. It's like the Ryanair of brokers.
One thing that got my attention, though, was the first appearance (that I've seen) of the new HSBC blended index funds. TERs are Cautious 0.84%, Dynamic 0.85%, Balanced 0.87%. Not sure what the compositions are because rplan doesn't appear to bother with factsheets or fripperies like that - just a list and a basket!0 -
saveonarola wrote: »Just had a look at their website. It's either still under construction or incredibly minimalistic. It's like the Ryanair of brokers.
One thing that got my attention, though, was the first appearance (that I've seen) of the new HSBC blended index funds. TERs are Cautious 0.84%, Dynamic 0.85%, Balanced 0.87%. Not sure what the compositions are because rplan doesn't appear to bother with factsheets or fripperies like that - just a list and a basket!
Ah! It took me a while to finally get to their investment choices!
It also doesn't state the AMC.
Ignore me. They give back 50% of the ongoing comission. So from a 1.5% typical AMC, they will give back 0.25%.
To me, that's not that cheap. And given RDR... they will have to change their process pretty soon.0 -
Another option to consider for those wanting tracker funds in a pension is the Blackrock tracker funds via Skandia (personal pension via clubfinance):
http://www.clubfinance.co.uk/Skandia-SIS-Collective-Retirement-Account-CRA-Personal-Pension.php
[TER on the Blackrock tracker funds is also around 0.3%]
There is a £68.50 annual charge - so better for larger pots but they do rebate trail commission on managed funds [unlike HL SIPP) - useful if you hold a mix of trackers and managed funds.
If you only hold trackers, the Skandia annual charge of £68.50 may still be more cost effective than the HL SIPP annual fee (0.5% capped at £200+VAT) on trackers in a SIPP.
(Note Skandia charge will increase in line with the Average Earnings Index from June 2013)"The happiest of people don't necessarily have the
best of everything; they just make the best
of everything that comes along their way."
-- Author Unknown --0 -
saveonarola wrote: »One thing that got my attention, though, was the first appearance (that I've seen) of the new HSBC blended index funds. TERs are Cautious 0.84%, Dynamic 0.85%, Balanced 0.87%. Not sure what the compositions are because rplan doesn't appear to bother with factsheets or fripperies like that - just a list and a basket!
Apologies to rplan. You get the factsheets if you click on the name of the fund in the list. It still doesn't say what the compositions of those funds are, but there is more information about charges.0 -
saveonarola wrote: »Apologies to rplan. You get the factsheets if you click on the name of the fund in the list. It still doesn't say what the compositions of those funds are, but there is more information about charges.
Thanks! Can't believe I haven't worked this out, I am meant to be an IT whizz.
To be fair though, the website is very good looking, but seems a little too basic.0 -
If they've put the £2 charges on the HSBC trackers, I would expect a similar charge for the Vanguard onesIlya_Ilyich wrote: »Articles such as this suggest that Vanguard is a cert to appear from 'early next year' on HL. Going to try to find out what exactly this means as it might end up cheaper just plonking everything in boring managed funds for a month or two rather than shifting provider.
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The fee is not based on the amount you are contributing. So, your percentages are only correct for the first month. For instance, if you have been contributing £50 per month for 20 months then you will have a holding of £1000, so you will be paying a platform fee of £2, which is 0.2% of your total holding. You will pay this every month, even if you stop your monthly contributions. So, the platform fee is equal to 2.4% per year. If you have a holding of £10,000, the platform fee is equal to 0.24% per year.black_taxi wrote: »£50 a month 4%+t.e.r
£100 a month 2%+t.e.r
£200 a month 1%+t.e.rkoru0 -
......would it be possible to invest in the HSBC tracker funds via the HSBC Global investment Centre to avoid the Hargreaves Letusdown platform charges?
Looks like charges for the FTSE all share tracker and FTSE 250 tracker for example are the usual 0.27% TER only. Minimum investment £500 per fund.
You have to have a HSBC current account or qualifying savings account to join the HSBC Global Investor Centre but presumably that could be easily arranged. Could you open a Flexible Saver for example without opening a current account?
Having rung them up yesterday to enquire they arranged an appointment today at the local HSBC branch. Got an HSBC Flexible Saver account set up (not am HSBC customer prior to today) and already have full internet access to that account and have successfully applied for the Global Investment Centre. The settlement account seems to work very well as a way to put money in and out.
So literally could invest money in the low cost HSBC trackers tomorrow if I wanted to. Will be selling my non-ISA HSBC trackers with HL and switching the money into here.
Only downsides of the HSBC Global Investment Centre seem to be you can't transfer ISAs in (currently) and you have to invest by lump sum, minimum £500 (no regular contributions).
And this isn't for active investors or people wanting to invest in trackers other than the HSBC tracker range as the fund choice is limited. Full list of funds here (at bottom of the document).
Note the Global Investment Centre is for investment ISAs and money outside of an ISA (but not SIPPS)
But a good bet for investing in the low charging HSBC trackers at the lowest cost in the current environment of expected further platform fees.I came, I saw, I melted0 -
mr_fishbulb wrote: »If they've put the £2 charges on the HSBC trackers, I would expect a similar charge for the Vanguard ones
Yup, but Vanguard do the LifeStrategy tracker range, which are a balanced portfolio in a single fund. £24 a year for this, with no dealing fees other than the dilution levy, would be a bargain!
I asked HL whether they would offer these, and they tried to call me back earlier today, but I wasn't in.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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