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H-L introduces a Tracker Platform Charge
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The £1.95 charge has mysteriously disappeared now when I logged in again. Does look like something funny is going on with their systems.
Snap!!
Just logged on and my charge has disappeared.
I wonder if they have already responded to complaints sent to them on a sunday afternoon by running around flicking switches?
I have a screen copy of my charges. It was no blurred vision.
Very odd, whatever is going on. Does not instill me with confidence.0 -
My outstanding ISA fee has also vanished, but only because it is now become settled :-(
SIPP fee is still outstanding.0 -
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Good to see the Vanguard LifeStrategy on there. £24 a year for those is a bargain!
It's also good to see HL being up-front regards bid/offer spread etc, though they seem to have marked it on the Vanguard 20% equity income, which seems to be in error.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 -
That is an interesting development. They seem to have got their timing wrong; would have been better to have introduced these trackers at the same time as introducing the platform fee not afterwards.
It does look like they have brought these very low cost trackers in to try and stop the huge exodus from HL of investors with large tracker portfolios. After all post RDR it shouldn't matter so much whether active or passive investors invest with them, as opposed to now where it is the active investors where they make most of their larger profits.
On the surface for example the SWIP FTSE all share tracker with 0.11% TER and no initial charge, and a £2 per month platform fee does look extremely cheap for a tracker especially for anyone with 10K plus invested.
However I don't trust HL at all. What is to stop them making a major hike in the platform fee or charges at a later date after all those with say money in the HSBC FTSE all share tracker via HL have switched over to the SWIP all share tracker.
They have shown that they will arbitrarily increase charges with just around 30 days notice, try to keep it quiet, and then charge people who want to re-register funds following the hike.
Edit: Is this a further sign of a new HL marketing strategy (copied from the savings industry) to advertise at cheap charges that they don't intend to maintain and then hike charges later when people have invested. I hope the FSA are on the ball and provide full protection for investors hit by this new strategy. The likely compulsory free re-registration coming in perhaps 2013 may be part of this but it is only part.I came, I saw, I melted0 -
The HSBC Tracker 0.5% ISA charges for November have also been removed from my fees. So yes it looks like they received several complaints, realised they had made a mistake and have "amended things".
Just checked my e-mail and found a response from HL:
"There was an issue with the November Management fee, in that some fees were taken where they were not due. We are aware of this, and this will be being reversed onto your account today. Please accept our apologies for this mistake."
Chris0 -
Wow, they didn't even wait for RDR! http://www.hl.co.uk/funds/index-tracker-funds/benefits-and-risksI wonder if RDR is going to see HL experiencing a sudden revelation about the arguments for trackers? If they have to start charging separate stand-alone fees for all investments, it would seem to make sense that they would charge the same fee for holding a passive fund as an active fund. So, all of a sudden there will be no incentive for them to push active funds in preference to passive funds.
It's going to be amusing watching them suddenly start being more enthusiastic about trackers without admitting their previous scepticism was in any way influenced by commission considerations. Kind of like the way they have always been against investment trusts until one, the Anthony Bolton Fidelity investment trust investing in China, started paying commission and all of a sudden HL lost their previous scepticism about investment trusts.
I wouldn't say that they have suddenly become cheerleaders for passive investment, but they have carefully removed the one-sided bias in their previous “research" on tracker funds.koru0 -
cmorgan091 wrote: »The HSBC Tracker 0.5% ISA charges for November have also been removed from my fees. So yes it looks like they received several complaints, realised they had made a mistake and have "amended things".
Just checked my e-mail and found a response from HL:
"There was an issue with the November Management fee, in that some fees were taken where they were not due. We are aware of this, and this will be being reversed onto your account today. Please accept our apologies for this mistake."
Chris
Thanks, thought i had been seeing things when the charges disappeared.
There was nowhere for them to take charges from for me as I am solely invested in accumulation units and have no loyalty account balance etc. But it looks like they have actually been taken (as well as displayed) for investors in a different situation to me and will need to be refunded?I came, I saw, I melted0 -
On the surface for example the SWIP FTSE all share tracker with 0.11% TER and no initial charge, and a £2 per month platform fee does look extremely cheap for a tracker especially for anyone with 10K plus invested.
100% in UK equities? Not exactly balanced and diversified!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 -
Some interesting figures in their comparisons of the different trackers. SWIP and Vanguard are the only ones that do daily rebalancing of the portfolio. I didn't realise that many of the others only rebalance once a quarter or half year, so it is not surprising that they track the index poorly. You might think that this would lead to a higher TER for these two trackers, but they are in fact the cheapest. However, I assume that if they are rebalancing on a daily basis they must have higher transaction costs (and these are not included in the TER).Wow, they didn't even wait for RDR! http://www.hl.co.uk/funds/index-tracker-funds/benefits-and-risks
Shame on Henderson, who have the nerve to have a TER of 1.18% for their UK tracker, which is more than 10 times higher than SWIP.koru0
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