H-L introduces a Tracker Platform Charge

cloud_dog

mr_fishbulb wrote: »

I'm guessing I can't sell it and buy another fund as other funds have a minimum lump sum investment of £1000. Harumph.

Mr_fishblub........ just switch it to another fund. In the 'Place Deal' function there is the option to 'Sell', 'Buy', or 'Switch' (in to another fund).

EDIT: meant to say....... If thats what you want to do.

black_taxi_2

i sold out yesterday--timed it well(pure luck) thx HL

Mikeyorks

mr_fishbulb wrote: »

I'm guessing I can't sell it and buy another fund as other funds have a minimum lump sum investment of £1000.

I don't think that will be a problem. When I've 'Bed and ISA'd' Funds in the past - I've inevitably had some odd £100s left in the non-ISA accounts. And they've accepted purchase instructions into a new fund without problem.

I've also converted Loyalty payments into credit and purchased under £100 ......... admittedly to add to an existing fund

gadgetmind

Mikeyorks wrote: »

I've also converted Loyalty payments into credit

They have moved these to "Fund and Share" accounts just with a message, but obviously can't usually move them to ISAs/SIPPs because this would be additional subscriptions etc.

I have mused with asking if they will move the bonus to my wife's Fund and Share, but 1) sending a form is easy, 2) my bonuses are dwindling to zero as I go more passive, and will be even lower when I jump ship away from HL.

jem16

dunstonh wrote: »

It is this sort of discrimination that the FSA wants to get ride of.

Unfortunately it appears that this is the negative effect of RDR on the smaller investor who, up uintil now, has been subsidised by the larger investor.

So we are now beginning to see the transparency that many wished for and the removal of commission bias.

Good or bad? - depends which end of the scale you are at.

gadgetmind

jem16 wrote: »

Good or bad? - depends which end of the scale you are at.

Anyone saving enough to make a difference will probably see a net benefit. Let's wait and see.

koru

mr_fishbulb wrote: »

Glad I came on here today. I have the HSBC American Index fund. Currently invest £50 a month into it, and it has about £500 in there.

I'm guessing I can't sell it and buy another fund as other funds have a minimum lump sum investment of £1000. Harumph.

Another option is to double my contributions to £100 so it only costs me 2%. Not ideal, but at least it will get me up to the min lump sum quicker.

The charge of £2 per month is on your total holding in the fund. So, if you have £500 of holding, the fee is equal to 0.4%. Or 4.8% per year, which is going to make a serious dent in your fund. You would probably be better off switching to an actively managed fund, which might have a TER that is about 1% higher than the index fund, but that's better than 4.8% fee.

koru

I am no big apologist for Hargreaves Lansdown, but it is worth pointing out that the new platform fee will not apply until 31 December 2011.

mr_fishbulb

koru wrote: »

The charge of £2 per month is on your total holding in the fund. So, if you have £500 of holding, the fee is equal to 0.4%. Or 4.8% per year, which is going to make a serious dent in your fund. You would probably be better off switching to an actively managed fund, which might have a TER that is about 1% higher than the index fund, but that's better than 4.8% fee.

Cheers. I was thinking of it as an upfront cost as I'm currently drip-feeding monthly, but yes the percentage would be higher if I think of it as a yearly charge on a lump sum

gadgetmind

koru wrote: »

I am no big apologist for Hargreaves Lansdown, but it is worth pointing out that the new platform fee will not apply until 31 December 2011.

They have at least given notice, but one does wonder what percentage of their customer base have seen it.

Anyone holding small amounts of HSBC trackers needs to move to Fidelity, Bestinvest, etc. though they should expect to have to move again.