Alliance Trust SIPP to rebate all commission on funds

EdInvestor · 9 August 2008 at 11:14AM

http://www.ft.com/cms/s/0/dd434ea0-656f-11dd-a352-0000779fd18c.html

Dealing fee of 12.50 when buying, 75 quid annual fee.That will give investors with larger portfolios a better deal than HL.

AT used to be attractive to share based investors with smaller portfolios, who would now be better off at Sippdeal.

jamesd · 10 August 2008 at 3:38AM

30,000 is the point where the 0.25% average commission will just cover the 75 Pound annual fee. 5,360 extra is needed for each single purchase to recover that cost within a year. Someone with 83,600 in ten funds would break even in the first year, then be 134 a year better off than if at Hargreaves Lansdown if they made no more purchases.

Accumulating funds at Hargreaves Lansdown and then transferring them to Alliance Trust for long term holding may make sense for some.

Laughing_Boy · 13 September 2008 at 10:57AM

I'm not quite sure how the ft article calculated the average 0.25% AMC rebate. If you look at the fund list http://www.alliancetrust.co.uk/alliancetrustsavings/pdfs/list_of_funds.pdf
it seems to be an average of about 0.5% rebate, so the cut off is about £15,000 to save the £75 annual charge.

Alliance Trust SIPP to rebate all commission on funds

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