H-L charging structure

pqrdef

Radiantsoul wrote: »

I think 118 118 is probably the most popular as it spent the most on adverts and had a catchy number.

That's it then. They're toast when the meerkats move in.

I wonder if H-L have thought about giving away cuddly toys.

pqrdef

doughnutmachine wrote: »

a portfolio of say 15 shares would provide a fairly well diversified portfolio.

In terms of diversification, it's not in the same league as an index tracker. The exposure to bad choices and random disasters is of a different order of magnitude.

Rollinghome

jamesd wrote: »

No it isn't. It's a recognition that people make that false claim and it'll go some way to deal with that claim.

I suspect your evidence for that assertion is even less robust than the circumstantial evidence for the opposite. But don't let that hinder you. How's your top tip for the cru Arch funds doing?

donniej

Originally Posted by doughnutmachine
a portfolio of say 15 shares would provide a fairly well diversified portfolio.

In terms of diversification, it's not in the same league as an index tracker. The exposure to bad choices and random disasters is of a different order of magnitude.

It would also likely be quite a bit more expensive to run (if you wanted to rebalance as often as a tracker would.)

Originally Posted by Rollinghome
‘Wealth 150’ list would no longer be criticised for allowing fund managers to buy their way on with bigger kickbacks to the platform."... Which is a tacit admission of the obvious: that their "Wealth 150" list is currently a list that funds pay to be advertised on

I also read it that way.

gadgetmind

Radiantsoul wrote: »

I guess it is a bit hard on active fund holders who have subsidised passive investors though.

HL charge £2 pcm to hold a tracker. This seems reasonable.

BestInvest charge £60 pa to hold multiple trackers. This seems reasonable.

I might even be prepared to pay a trifle more as a fixed fee but I have zero interest in paying them 0.6% of my pot pa.

jimjames

gadgetmind wrote: »

HL charge £2 pcm to hold a tracker. This seems reasonable.

BestInvest charge £60 pa to hold multiple trackers. This seems reasonable.

I might even be prepared to pay a trifle more as a fixed fee but I have zero interest in paying them 0.6% of my pot pa.

The £60 for Best Invest may seem reasonable but I can't see how that squares with £2 pm for HL being reasonable. The cost for HL of holding a selection of HSBC trackers is over £200py which certainly to me doesn't seem reasonable.

jamesd

The HL one is reasonable enough for a couple of trackers with relatively high amounts invested. Beyond that it starts to become interesting to move the trackers elsewhere, like to BestInvest. Depending on the relative dealing costs of the places and how frequent that is.

Porcupine

I'm currently in two minds about moving away from HL...

The first problem is a good chunk of funds I have aren't on alternative platforms like Cavendish/FundsNetwork.

Of those traditional 1.5% AMC funds that are, a number of them I have are hard or soft closed, which means I can't sell and repurchase elsewhere, and the transfer out fees would wipe out any saving for a few years (and take months)

The rest are trackers, which you can get at HL for about 0.5% these days without paying platform fee.

Once you factor in loyalty bonuses, it works out that HL are about 0.25% more expensive across the board than the cheapest alternative. If they charge 0.6% then that would creep up to 0.35% on actively managed funds (unclear what would happen to trackers).

So as yet it's not worth my while moving for 0.25%, given it involves a pile of hassle and exit fees. I'm currently mulling my options for this tax year, whether to gradually move out of HL during natural portfolio turnover, but the closed funds and lack of funds on other platforms are somewhat inhibiting.

jamesd

One possible way to approach that is to put new money into other places. Gradually the portion held at HL will end up being just the things that are only available there or any that might be best held there for some other reason.

For the ISA there's no charge for a cash transfer out and that may work for some of the things you hold, where it's not cheaper overall to pay the £25+VAT to transfer a holding.

dach

I find the cheapest way to invest in trackers is to buy Vanguard etfs through X-O http://www.x-o.co.uk/
the cost is a one off charge of £5.95 and there are no further charges, until you sell
etfs available include ftse 100 (ter 0.1%) and s&p 500 (ter 0.09%)
https://www.vanguard.co.uk/uk/mvc/investments/etf#fundstab