H-L introduces a Tracker Platform Charge

JamesU

Mikeyorks wrote: »

So just what creates the breakpoint between a platform fee - or not? I've just swept through my (33) Funds. The Platform Fee now shows on all the factsheets - but as Free.

Anything with the words "index" or "tracker" at HL by the looks of it. Most of the ones I checked against earlier are £2/mth now (such as others not mentioned so far include F+C, Virgin, L+G). L+G EM notable exception at "only" £1/mth.

Big impact on index fund investing for many I guess. For a tracker (assuming value constant over 10yr), compounded charge of 2.4% on a £1K fund would result in approx 20-25% devaluation over 10yrs.

JamesU

SnowMan

May be a silly question but would it be possible to invest in the HSBC tracker funds via the HSBC Global investment Centre to avoid the Hargreaves Letusdown platform charges?

Looks like charges for the FTSE all share tracker and FTSE 250 tracker for example are the usual 0.27% TER only. Minimum investment £500 per fund.

You have to have a HSBC current account or qualifying savings account to join the HSBC Global Investor Centre but presumably that could be easily arranged. Could you open a Flexible Saver for example without opening a current account?

Only had a quick look so very likely to have missed something.

Any thoughts?

dunstonh

HL cant lose by making this change.

If someone being charged leaves them, then it is loss making account they are better off not having. If they stay then they get money they didnt get before.

Most trackers will be available direct from the fund house. However, you are likely only to get the retail version of the tracker. Platforms often have the institutional version (read cheaper)

gadgetmind

dunstonh wrote: »

HL cant lose by making this change.

I think it was bound to happen at some point, I'm just glad I hadn't mailed my fresh SIPP cheque!

I've had a good few years with HL, but I do think it's time for a move, and a "and a wash and brush up" of our pensions and ISAs to get the best performance with the least fee drag.

Bye bye Hargreaves Lansdown, and I hope your office doesn't fill with tumble weed too quickly as everyone switches away.

ffacoffipawb

gadgetmind wrote: »

I think it was bound to happen at some point, I'm just glad I hadn't mailed my fresh SIPP cheque!

I've had a good few years with HL, but I do think it's time for a move, and a "and a wash and brush up" of our pensions and ISAs to get the best performance with the least fee drag.

Bye bye Hargreaves Lansdown, and I hope your office doesn't fill with tumble weed too quickly as everyone switches away.

I have a SIPP (direct high yield shares) with SIPPDEAL and was using HL for tracker funds.

I don't want to move everything to SIPPDEAL as I don't want all my eggs in one basket as it where.

It's only £24 per year, but that's probably just a start.

Any suggestions of where to take my business to? Cavendish maybe? The fund is about £18k, which is just a fraction, under 10%, of my SIPPDEAL pension by the way.

JanKoller9

I have just noticed the fees today and am a bit annoyed, just started my first ISA in August with HL, and most of my funds are in HSBC trackers!

I have been looking at switching to Alliance Trust today, they have a £25 yearly fee but this includes two free trades (worth £25). Furthermore the Vantage tracker funds are available with them, with TERs as low as 0.15%.

Does anybody have any experience with Alliance Trust and/or with the Vantage tracker funds? are there any hidden charges?

MrMalkin

The robbing !!!!!!!s. Pretty livid right now.

dunstonh

MrMalkin wrote: »

The robbing !!!!!!!s. Pretty livid right now.

How are they robbing?

They dont earn a penny on non commission paying assets and have effectively being giving their services for free for those that use non commission paying assets.

jamesd

The dealing charges are the issue with Alliance Trust. The £2 a month charge from HL is probably going to be cheaper than AT dealing charges.

bigsy

JanKoller9 wrote: »

I have been looking at switching to Alliance Trust today, they have a £25 yearly fee but this includes two free trades (worth £25). Furthermore the Vantage tracker funds are available with them, with TERs as low as 0.15%.

Does anybody have any experience with Alliance Trust and/or with the Vantage tracker funds? are there any hidden charges?

The Alliance Trust ISA fee is £30 (£25+VAT) and this gives you one free trade, not two.

This recent Monevator article discusses the current cheapest ways to obtain Vanguard funds: http://monevator.com/2011/10/07/bestinvest-vanguard/

Which platform is best for you depends on the frequency of trading and number of funds. A drip-feeding portfolio of Vanguard trackers with Bestinvest (£60 per annum) now looks attractive relative to a portfolio of HSBC trackers with Hargreaves Lansdown. Of course, I wouldn't be surprised if all these charges change over the next couple of years.