HL Annual management costs

westy22

From HL's explanation of 'equalisation payments' - "If you hold accumulation units your equalisation payment is never physically made to you, it is instead reinvested within the fund, so the adjustment to your cost figure is made solely for tax purposes."

jimjames

PParka wrote: »

I've just found out that Hargreaves Lansdown is to unveil its pricing model on 15 January.

Best warn anyone that needs to place any transactions to do it before then as the website will probably crash as per Royal Mail shares when 500,000 customers try to check how much they will be charged

slinga

westy22 wrote: »

From HL's explanation of 'equalisation payments' - "If you hold accumulation units your equalisation payment is never physically made to you, it is instead reinvested within the fund, so the adjustment to your cost figure is made solely for tax purposes."

Thanks.
Trouble is I can't see any additional fund units anywhere.

If it's as you say then the transparency is non existent.

grey_gym_sock

jimjames wrote: »

Best warn anyone that needs to place any transactions to do it before then as the website will probably crash as per Royal Mail shares when 500,000 customers try to check how much they will be charged

as if any non-MSE-ers care how much they're charged ...

slinga wrote: »

Trouble is I can't see any additional fund units anywhere.

there wouldn't be with accumulation units - the income boosts the value of each unit instead.

this only makes any difference for tax - if the investment is unwrapped.

Porcupine

grey_gym_sock wrote: »

oh, so we can probably forget about "superclean" for this fund.

the general idea applies to other funds that are still fully open.

What happens to closed funds? Are they let off having to make a clean class, so can continue high-cost units? Or will they have to comply whenever the deadline about switching existing holders will occur?

Lokolo

Porcupine wrote: »

What happens to closed funds? Are they let off having to make a clean class, so can continue high-cost units? Or will they have to comply whenever the deadline about switching existing holders will occur?

As you say, given platforms have to transfer to clean by 2016, Fund Managers would still need to create a clean class for this to happen.

With the Cazenove fund, I imagine there will be a number of changes as Schroders bought Cazenove. Whether or not Schroders converts it to a Schroder Fund or not I don't know.

dunstonh

Porcupine wrote: »

What happens to closed funds? Are they let off having to make a clean class, so can continue high-cost units? Or will they have to comply whenever the deadline about switching existing holders will occur?

The fund can continue without switching to a clean one. However, the method of rebate will be defined and not left to the choice of the platform.

slinga

westy22 wrote: »

Are you sure that this is not actually a credit to you? Most 'Corporate Actions' of this nature result in a credit to you and effectively reduces your cost figure and is usually the result of you getting a proportion of the dividend or income already earned on the holding at the time you purchased.

If it is a debit entry in the Cost column of your Stock Movements record then it is a credit!!

Just been looking at this in a bit more detail.
It is actually a debit from my funds.