Alliance Trust Pays back annual commission

Jake'sGran

I have been a regular investor using Hargreaves Lansdown like many others do mainly because they refund the initial fee on most funds. And with their Vantage account they pay back a tiny amount of the annual commission they receive from the fund operators. There was a small piece in The Times about the Alliance Trust and after looking at their site I've learned that they refund ALL of the annual commission they get back from the fund companies and they also don't charge the initial fee(in units) on a lot of funds but I've not yet found precise details of this as they use a PDF list which I find messy to read. Have any of you used Alliance Trust for their investments? They have a first class reputation but I am truly surprised that they give back so much and wonder how they make their money.

cheerfulcat

Well spotted, Jake's Gran! I think that this must be part of the new charging structure - I'm fairly certain that they didn't refund the annual commission before.

I am truly surprised that they give back so much and wonder how they make their money.

Alliance Trust has been first and foremost an investment company - the offering of investment accounts is, I think, fairly new. There's an overview of the group structure here.

Meant to add - they are considerably more expensive than some brokers/fund supermarkets when it comes to one-off charges, so it's quite possible that they make up any shortfall there!

Jake'sGran

I used to buy my grandsons units in the Alliance Trust every Christmas. They get cash now they are older. I hope their parents have not sold the AT investments. It was not a fortune but would still be a good one to have if kept a long time.