SWIP FTSE All Share Index 0.1 TER

[diveleader]

As the title says - what are your thoughts on this fund as a low cost option for a SIPP?

[SnowMan]

My thoughts are that is only available through Hargreaves Lansdown (as far as I am aware) which I don't like.

Firstly there is the platform charge to add in of £24pa.

Hargreaves Lansdown also will be amending their charges to allow for platform RDR. So don't be surprised to see a large increase in charges.

From past experience HL will also make it very difficult to move away when they do increase charges. I had to get the Financial Ombudsman to get HL to act fairly when I moved away because of a large charge increase.

It will not be possible to re-register that fund away when they do increase charges because only HL offer it.

So generally you are better off with the Vanguard FTSE all share tracker which has a great record of tracking the index closely or the HSBC C class tracker. Both have marginally higher quoted TERs/OCFs than the SWIP fund.

You of course need to factor in your own position and platform and fund charges for your whole portfolio in making a decision which all share tracker to hold and where.

[ozzage]

If you're with HL anyway, as I am, then it's great! You need enough in there to make it worthwhile with the £24 per year but with a TER of 0.1% that isn't really very much.

[dunstonh]

You would be silly to invest 100% of your fund in there. Too much in one place.

[diveleader]

Originally Posted by dunstonh

You would be silly to invest 100% of your fund in there. Too much in one place.

Yes, I would never put 100% there - just thinking of circa 20%

[SallyG]

Why has SWIP made this exclusive to HL?