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H-L introduces a Tracker Platform Charge
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You might find this look at the various providers useful as a starting point: http://candidmoney.com/actionplans/actionplan3.aspxtushingham wrote: »If someone has looked into it already and can given me some pointers for my own research then that'd be great.
Which might be best specifically for you will probably depend on which tracker funds you want and the amounts you intend to invest. Going direct could be another option, again depending on which funds you have in mind. Going direct will normally give the additional benefit of being able to buy right up to the price-fix deadline, so giving the chance of better timing, rather than having to place an order before the markets open as with HL.0 -
I don't follow. Do you mean the start of 2013? The new HL monthly charges start at the end of next month.
Sorry, had a moment when I thought I was still in 2010 clearly.
However, the question is still valid, even if its a year away. Although I do expect another set of charges to replace these will come once the FSA platform review moves on.
There is the possibility that the FSA will allow bundled platforms if the likes of HL and other bundled platforms lobby hard enough. However, it really does not sit with the objectives of the RDR and the Consumer Panel objection to bundled platform was seen by many as the key thing which steered the FSA towards their position.
However, they have said they will look at unintended consequences and this is certainly one of them. That said, the current system works by having one set of investors cross subsidising another set of investors. Arguing to keep that unfair system in place by creating a level playing field for all is going to be hard.
I reckon that they will stick with the level playing field for all investment types and say that if you dont like the platform charges then shop around (there are bound to be different models and pricing to suit different target markets) or go direct to the fund house.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
If you do want to stick with HL, it might make sense to switch to trackers which don't have the platform fee - there are a few available. For example, see those in UK All Companies. It appears anything with a star, plus everything with annual fee of 0.5% or less, will attract the platform fee. But, for example, Scottish Widows UK Tracker (fee 1.0%) won't. Paying an extra 0.5-0.7% may well work out cheaper than the fixed fee (assuming this a reasonable tracker - I haven't checked).
ETA: Ah, looks like the Scottish Widows fund has a minimum holding of £100,000 but a minimum monthly contribution of £50. As it happens I have a holding of L&G UK Index for the total sum of £3 which I clearly need to get rid of before 1st Jan, so I've just actioned a switch and we'll see if that goes through.0 -
Living for tomorrow might mean that you survive the day after.
It is always different this time. The only thing that is the same is the outcome.
Portfolios are like personalities - one that is balanced is usually preferable.
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Ark_Welder wrote: »
From that article:
"The £2bn Virgin UK Index Tracking fund is the largest tracker with a TER of 1 per cent or over.
Communications director at Virgin Scott Mowbray says the fund’s greater flexibility justifies the higher fees.
“Our customers tell us they like the simplicity and accessibility of our approach,” said Mowbray. “While most trackers impose minimum monthly payments such as £50 per month which some people cannot afford, the Virgin UK Index Tracker allows investors to put in as little as £1.”
What a load of bovine - putting £1 a month into a stock market fund seems pretty pointless! Also according to this "The Virgin UK Index Tracking Trust has not fared quite as well, returning just 1.5pc over the past five years, compared to the FTSE All Share which has grown 6.8pc." Virgin tracking fail.
Surely what most people want from a tracker is accurate tracking and low charges - not the "simplicity and accessibility" of being able to put in £1 a month!"The happiest of people don't necessarily have the
best of everything; they just make the best
of everything that comes along their way."
-- Author Unknown --0 -
So, does that mean that from that point, every fund you buy at HL will incur a £2 charge as they will all be non commission payers?
Who knows quite what any of them will do? However, they seem to be settling on a platform charge of between £100 and £200, albeit subsidised by those who choose high-fees funds right now.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
competitionscafe wrote: »Surely what most people want from a tracker is accurate tracking and low charges - not the "simplicity and accessibility" of being able to put in £1 a month!
Quite so. Virgin has always been a sucky tracker, and it's stayed put as others have improved, which makes it even more sucky.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
tushingham wrote: »If someone has looked into it already and can given me some pointers for my own research then that'd be great.
Unless HL backtrack, or unless they offer the Vanguard LifeStrategy trackers, then I'm sorry to say that think you'll be better moving. I have asked them regards LifeStrategy but they have not replied.
See this article -
http://monevator.com/2011/10/07/bestinvest-vanguard/
Note that Bestinvest don't charge the fee (yet!) if you use HSBC trackers, and Fidelity (not mentioned in that article) don't charge a fee either, but don't have Vanguard trackers.
I'm afraid that I haven't looked at drip feeding as I tend to bang my annual allowance in on April 6th, though this might change given what this summer brought!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
People who are HSBC FTSE All Share Index investors should bear in mind that HL is providing the 'Institutional A' version of the fund (ISIN GB0031008443) which is a marginally better performer than the 'R Retail' version (ISIN GB0000438233) offered by most other providers. If you have more than about £10,000 in the fund then you may find the Inst version performance benefit more than covers the £24 pa cost.Old dog but always delighted to learn new tricks!0
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the 'Institutional A' version of the fund (ISIN GB0031008443) which is a marginally better performer than the 'R Retail' version (ISIN GB0000438233) offered by most other providers.
Well spotted.
The HSBC FTSE 250 tracker I'm considering is 0.31% TER for the retail versus 0.27% for the A version. On a £60k investment, this 0.04% extra would come to £24, so for less than this you're better with the higher cost version and no annual fee, or haven't I had enough coffee yet?
The HSBC All share appears to be even closer, 0.29% versus 0.27%. Interestingly, Bestinvest seem to offer both, but each is 0.29%.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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