stakeholder or sipp

SuperMum2008

Not sure the poor person who asked this question has got a direct answer yet?!

jamesd

Several direct answers: they are recommending because they are selling it and it's cheaper because it's not necessarily cheaper, just sales talk.

Vincenzo

dunstonh wrote: »

Every unit trust/OEIC on their platform has an annual management charge.



I am yet to see one where there isnt.


Not on the SIPP. Not unless your group scheme have negotiated special terms which are not available to the retail consumer buying direct from HL.

Dunstonh,

You misunderstood. I was referring to an earlier poster's reference to extra management charges imposed by Hargreaves Lansdown. Clearly all the Unit Trusts / OEICs have AMCs. On the vast majority of funds (save for one specialist fund) I pay no initial charges at all. On all the others the total AMC averages out at less than the 1% I was paying for my Stakeholder.

I will have to check on the annual management charges. I do recall however that when I invested in the HSBC tracker the annual charge was discounted. This was before HSBC reduced their AMCs across the range and as such HL will no longer be cheaper.

dunstonh

You misunderstood. I was referring to an earlier poster's reference to extra management charges imposed by Hargreaves Lansdown.

HL on the ISA do charge extra on certain funds. I dont know if they do on the SIPP.

On all the others the total AMC averages out at less than the 1% I was paying for my Stakeholder.

Thats not comparing like for like distribution channels though. The HL SIPP is for the DIY market. Get a DIY stakeholder or personal pension and you are looking at 0.3-0.4% for trackers. It is possible with large funds to get that down to 0.2% with the right pension.

The majority of people using the HL SIPP will use managed funds. They are typically 1.5%.

There is nothing wrong with the contract and for serious DIY investors its good. However, the marketing of it leaves a little to be desired.

Vincenzo

dunstonh wrote: »

HL on the ISA do charge extra on certain funds. I dont know if they do on the SIPP.



Thats not comparing like for like distribution channels though. The HL SIPP is for the DIY market. Get a DIY stakeholder or personal pension and you are looking at 0.3-0.4% for trackers. It is possible with large funds to get that down to 0.2% with the right pension.

The majority of people using the HL SIPP will use managed funds. They are typically 1.5%.

There is nothing wrong with the contract and for serious DIY investors its good. However, the marketing of it leaves a little to be desired.

They don't on Unit Trusts / OEICs in the SIPP.

Not sure I understand your point on the channels. The TER on the HSBC All Share tracker I have through the HL SIPP is 0.27%. (AMC is 0.25%). It doesn't get much cheaper than that!

Yes, I do have various managed funds, some of which are 1.5% and as you say this is not comparable to trackers for obvious reasons.

dunstonh

Not sure I understand your point on the channels.

HL's SIPP is retailed to the DIY investor. Yet their advertising compares it to advice channel pricing. They ought to compare it to DIY pricing. Indeed, under fee based advice or even fee based execution only, it is possible to get personal pensions with no intial charge and lower annual management charges. For people with medium to larger values that would be cheaper than HL.