SIPP, Hargreaves Lansdown and Funds

wellsie82

just a quick question to anyone who knows or has used HL's SIPP before

at the moment ive got a direct debit set-up and first payment is to be taken 7th march. ive not decided yet where to invest my monthly amounts and was going to do them adhoc, ie pop online once a month or every few months to see where i wanted to invest

question is, do HL execute the trading instructions straight away or do they do them once a month? the reason im mentioning this month a month thing is because if i had of had a regular arrangement/trade then these are processed on the 10th of each month

purch

If you have enough money sitting in the Cash account, then the Transaction will be made straight away (allowing for the usual 1-2 day delay in the process of investing in Funds)

wellsie82

purch wrote: »

If you have enough money sitting in the Cash account, then the Transaction will be made straight away (allowing for the usual 1-2 day delay in the process of investing in Funds)

thanks for that, that does make sense but wanted to check

i did ring HL to check earlier and they said they only deal once a month, i assumed those of you on here knew more about HL than the employees of HL do about their own company and i wasn't wrong!

david78

They probably meant that if you instruct them to set up a regular, monthly savings plan to buy a particular fund (say £100 pm. in Psigma income), they will only invest your £100 in one go, usually between 8th and 10th of month, but won't split it into two £50 purchases on different dates.

cloud_dog

Running H-L SIPP without charges.

I'm running my wife's small pension in the H-L SIPP utilising Funds so as to ensure I do not have to pay any additional SIPP charges.

The one thing I always find frustrating is that I know most of the funds are available without causing the SIPP ann maint charge to kick in, i.e. pay H-L renewal commission but there isnt an easy way to identify which funds might not pay H-L annual / renewal commission and might therefore, if I invested in one, cause the SIPP account to incur ann management charges.

Anyone know how to tell the difference within any of the H-L factsheets, etc?? Also does anyone know if qualifying ETFs fall under the same banner or are they likely to cause the AM fee to kick in?

Thanks cloud_dog

meester

cloud_dog wrote: »

Running H-L SIPP without charges.

I'm running my wife's small pension in the H-L SIPP utilising Funds so as to ensure I do not have to pay any additional SIPP charges.

The one thing I always find frustrating is that I know most of the funds are available without causing the SIPP ann maint charge to kick in, i.e. pay H-L renewal commission but there isnt an easy way to identify which funds might not pay H-L annual / renewal commission and might therefore, if I invested in one, cause the SIPP account to incur ann management charges.

Anyone know how to tell the difference within any of the H-L factsheets, etc?? Also does anyone know if qualifying ETFs fall under the same banner or are they likely to cause the AM fee to kick in?

Thanks cloud_dog

ETFs and shares don't pay commission at all, so you would definitely pay commission of 0.5%+VAT

As for funds, it's listed on the fund page I think.

See e.g.:

http://www.h-l.co.uk/fund_research/security_details/sedol/0205140.hl

Annual charge0.20%¹

Additional annual charge of 0.5% + VAT is applied to this fund when held in the Vantage PEP, ISA and SIPP. This additional charge is not accounted for in the Total Expense quoted above.

It's also clearly marked in the fund tables, see e.g.

http://www.h-l.co.uk/fund_research/fund_search.hl?func=search&formid=1001&stype=discounts&company=1080&sector=&x=24&y=7

AFAICT, there is no difference between the SIPP and ISA on when this 0.5% charge is levied, the difference is purely with the funds with discounted AMC - funds that are discounted don't get discounted in the SIPP, but they do in the ISA.

So there really shouldn't be any confusion as it is shown on the fund page and the charge table

cloud_dog

meester wrote: »

So there really shouldn't be any confusion as it is shown on the fund page and the charge table

Thank for the info but................... Obviously there was the need to ask the question otherwise I wouldn't have done so. Your response was as tactful as ever.

There is nothing in the H-L information (I have searched) which indicates those elements referred to in your links is what I'm looking for, also whist it talks in terms of '0.5% + VAT......' being added it does not directly link this 0.5% with the minimum charge for a SIPP should this occur - which would be useful.

cloud_dog

meester

cloud_dog wrote: »

Thank for the info but................... Obviously there was the need to ask the question otherwise I wouldn't have done so. Your response was as tactful as ever.

There is nothing in the H-L information (I have searched) which indicates those elements referred to in your links is what I'm looking for, also whist it talks in terms of '0.5% + VAT......' being added it does not directly link this 0.5% with the minimum charge for a SIPP should this occur - which would be useful.

cloud_dog

If you don't like or don't believe my response, call up Hargreaves Lansdown and ask them yourself. I'm sure it would be quicker than prolonging this any further.

You could be just a little more gracious when I have taken time to respond to you. I would point out the relevant information in their documentation that shows that what I am saying is correct, but you would probably be offended by it, so I won't bother.

Won't waste my time any further.

cloud_dog

meester, sorry you took it that way. I shall endevour never to question any of your posts in future.

selimap

Reading this 1 year down the line (so maybe no one will read this reply!), I think it is VERY unfair on Hargreaves lansdown. I have used them for most of my shares, PEPs and ISAs for years and more recently a SIPP. I consider their customer service outstanding, easily the best of any financial company I have dealt with. Post is handled same day. Telephone calls are answered withing a few seconds and the person always seems knowledgable and helpful. Web site is matter of personal preference, but I think it's quite good now.

I particularly like the very clear information on all my accounts that I receive, as well as the pro-active reserach data they send me.

There is one small disadvantage with the HL SIPP: they only credit tax releief when received from HMRC, typcially 8-10 weeks after investment. Some providers credit all eligible contributions with the tax relief immediately and assume they'll reclaim it later.

I've just compared HL and sippdeal charges and HL are better on several e,.g. no charge on annuity (purcahsed via HL) or on regular Income payments. (HL do charge more for one-off payments out). The charges are not levied on a strictly comparable basis, but I would say HL looks at least as cheap and possibly better than Sippdeal, depending on account activities.

Also note that if you have more than £100k investable assets, HL will give you free investment advice.