H-L introduces a Tracker Platform Charge

Rollinghome

In the article mentioned by gadgetminded, HSBC say they pay 40-60% of the AMC to HL, information that HL refused to comment on claiming it was 'sensitive information', and Andy Clarke of HSBC says he only learned that HL were going to charge an additional fee on HSBC funds from Citywire. http://citywire.co.uk/money/double-chargers-hargreaves-lansdown-wants-investors-and-fund-managers-to-pay/a545698

As Westy22 has said, unlike HL, Fidelity are completely open with the amount they receive from the AMC and publish a full list of the 'supermarket and service fee' here: https://www.fidelity.co.uk/static/pdf/investor/research_funds/Fund-supermarket-table.pdf

The list also shows that Fidelity receive 0.35% for L&G trackers but HL who are likely to receive at least as much apparently regard that as insuffient and intend to take an additional £12 pa from the client. Those free envelope don't come cheap.

Imnoexpert_2

I received a letter from HL in the post today in response to my email commenting on the charges and the way they chose to tell their customers about the changes.

They say

"Index Tracker providers pay little or nothing towards the HL service"

They also tell me - and I haven't checked it

The polywrap of the magazine had "Important changes to our service" written on it as did the letter which said they (important changes) were on page 16 & 17.

I guess I see so much HL hype that these things have become invisible to me - my fault. Now that I know how they choose to communicate I shall read the polywrap very closely in future!

Lokolo

Imnoexpert wrote: »

I received a letter from HL in the post today in response to my email commenting on the charges and the way they chose to tell their customers about the changes.

They say

"Index Tracker providers pay little or nothing towards the HL service"

They also tell me - and I haven't checked it

The polywrap of the magazine had "Important changes to our service" written on it as did the letter which said they (important changes) were on page 16 & 17.

I guess I see so much HL hype that these things have become invisible to me - my fault. Now that I know how they choose to communicate I shall read the polywrap very closely in future!

Yep it did, but I thought it was originally "There are some more funds which we think you should buy etc." until I actually turned to the page and say it was the details on tracker charges.

black_taxi_2

money observer mag--dec issue

writes up low cost trackers big time

quotes the .027% ftse-all-share tracker

obviously went to press before H-L platform fees

competitionscafe

Danny Cox (of Hargreaves Lansdown) said "Clients invested in these funds benefit from our service without paying sufficient for it, hence the fee we are introducing. For example, someone invested in the HSBC All Share Tracker is paying just 0.25% for the fund currently and we are charging nothing on top."

Cox "warned that investors may face greater charges if they decide to leave the broker. "If clients want to transfer away from Hargreaves Lansdown there is a charge of £25 plus VAT per holding (£75 plus VAT regardless of numbers of fund holdings for a Sipp)".

"BestInvest says it will pay up to £500 towards any exit fees customers incur transferring holdings to its Select service from Hargreaves Lansdown, Barclays Stockbrokers or TD Waterhouse."
http://www.guardian.co.uk/money/2011/nov/25/hargreaves-lansdown-tracker-funds

gadgetmind

competitionscafe wrote: »

there is a charge of £25 plus VAT per holding (£75 plus VAT regardless of numbers of fund holdings for a Sipp)".

Only until RDR says otherwise, not if you flog and move as cash (as I'm currently doing though not from HL), and who cares if Bestinvest will pick up the bill!

TBH, that "we've got you and now we'll milk you" would cause me to move a SIPP away from HL, but I only use them for ISAs and shares.

allan.edin

i checked bestinvest website. all the hsbc trackers do not attract a custody fee,so definitely better than HL

gadgetmind

allan.edin wrote: »

i checked bestinvest website. all the hsbc trackers do not attract a custody fee,so definitely better than HL

Fidelity are also worth a look if you're not after the Vanguard or Blackrock funds. I'm told that Skandia (sippdeal) are good for the latter but you can only access the class D funds (lower TER than class A) via an IFA.

TBH it's all a real hassle to research, the Vanguard funds have the lowest TERs and a good rep, so I went with Bestinvest as Alliance have a larger annual SIPP fee *and* dealing fees, and while sippdeal have a lower annual fee, their £9.95 per deal fee would push them close after annual rebalancing.

Titan_Uranus

So, if i've got an ISA with H-L (Aberdeen Emerging what-ever), they are going to start charging me £2 a month?

koru

No, only certain funds.