Leaving HL without transfer charges

grey_gym_sock

mutley74 wrote: »

but don't you get paid the loyalty bonus share in full back? (HL don't take any share of this now from what I understand)

HL still keep a bit of commission on some funds. they are allowed to continue doing this until 2016 for existing holdings. though they are keeping much less than before on most funds (and charging 0.45% explicitly instead).

e.g. there seem to be a few funds with AMC 1.50%, loyalty bonus 0.75%, but perhaps the total commission is 0.85%, so HL are keeping 0.10%.

or there are odd cases, like ruffer funds, which now have no loyalty bonus, and HL keep the whole 0.50% commission.

there are also some funds where all the commission is paid out as loyalty bonus. this was true for all the tracker funds i looked at, but also for a few full-priced funds.

Rollinghome

mutley74 wrote: »

but don't you get paid the loyalty bonus share in full back? (HL don't take any share of this now from what I understand)

No you don't amazingly, despite what they'd like you to believe.

For most of the funds I looked at they will retain part, or in some cases, all of the commission despite charging a 0.45% platform on top.

See for example here: http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/r/ruffer-cf-total-return-class-o-accumulation-inclusive

That's shows an AMC of 1.5% plus a 0.45% platform charge with 0.00%, zilch, "loyalty bonus"/rebate of commission. So you pay twice and the net AMC cost goes up to 1.95% (plus other costs under the TER).

Earlier this year in a presentation for analysts they calculated that only about 50% of funds will be converted in the next 12 months and they'll be allowed to get away with it until April 2016. The clients who don't realise they're being charged twice will add a sizeable chunk to their profits.

See more in this thread: http://forums.moneysavingexpert.com/showpost.php?p=64960722&postcount=17

mutley74

Rollinghome wrote: »

No you don't amazingly, despite what they'd like you to believe.

For most of the funds I looked at they will retain part, or in some cases, all of the commission despite charging a 0.45% platform on top.

See for example here: http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/r/ruffer-cf-total-return-class-o-accumulation-inclusive

That's shows an AMC of 1.5% plus a 0.45% platform charge with 0.00%, zilch, "loyalty bonus"/rebate of commission. So you pay twice and the net AMC cost goes up to 1.95% (plus other costs under the TER).

Earlier this year in a presentation for analysts they calculated that only about 50% of funds will be converted in the next 12 months and they'll be allowed to get away with it until April 2016. The clients who don't realise they're being charged twice will add a sizeable chunk to their profits.

See more in this thread: http://forums.moneysavingexpert.com/showpost.php?p=64960722&postcount=17

a guess it depends on the funds, what is the unbundled rates for this example?
when I called HL they suggest reviewing each of my funds for inclusive costs vs unbundled.
I been with them for years so being careful before I consider moving. I have asked if they will match iii dealing rates for shares.

zagfles

mutley74 wrote: »

a guess it depends on the funds, what is the unbundled rates for this example?
when I called HL they suggest reviewing each of my funds for inclusive costs vs unbundled.
I been with them for years so being careful before I consider moving. I have asked if they will match iii dealing rates for shares.

I've been through all my (dirty) funds and they all refund the full difference in the clean vs dirty units charge, a few even refund a bit more.

masonic

grey_gym_sock wrote: »

there are also some funds where all the commission is paid out as loyalty bonus. this was true for all the tracker funds i looked at, but also for a few full-priced funds.

Even for these funds, I think people are in for a shock because this month's loyalty bonus won't be paid until the beginning of May, while two sets of platform fees will be taken at the end of March and April, leaving a shortfall and possibly triggering automatic fund sales and associated charges for the unwary.

grey_gym_sock

zagfles wrote: »

I've been through all my (dirty) funds and they all refund the full difference in the clean vs dirty units charge, a few even refund a bit more.

that is not quite the same question as whether HL are refunding all the commission they receive. though perhaps the question you've answered is the 1 you care about more - viz. the net cost to you.

e.g. dirty fund with AMC 1.50%, and rebate of 0.75%; or clean fund with AMC of 0.75% - so the net cost to you is the same either way (and you pay HL 0.45% in either case, for a total cost of 1.20%) ...

but it may be that the commission on the dirty fund is 0.85%, with HL retaining 0.10% of that, in which case HL are getting 0.55% in total, and the fund manger 0.65% ... while on the clean fund, HL are getting 0.45%, and the fund manager 0.75%.

mutley74

grey_gym_sock wrote: »

that is not quite the same question as whether HL are refunding all the commission they receive.

a good question to ask them when I next login

socrates

My son has a Junior ISA with HL - I have just moved over to iii - how should I deal with his ISA - will iii include it under my ISA or will it get its own charges?

HL want to charge 0.45% - naturally that is too high

Or is there another option - somewhere else?

masonic

socrates wrote: »

My son has a Junior ISA with HL - I have just moved over to iii - how should I deal with his ISA - will iii include it under my ISA or will it get its own charges?

HL want to charge 0.45% - naturally that is too high

Or is there another option - somewhere else?

http://www.iii.co.uk/investing/isas/junior-isas

Not available yet, but you should be able to link it to your own account and pay just the one management fee. It would probably be worth checking if they have an ETA as it would probably be the best place to move it if possible.

planteria

masonic wrote: »

http://www.iii.co.uk/investing/isas/junior-isas

Not available yet, but you should be able to link it to your own account and pay just the one management fee. It would probably be worth checking if they have an ETA as it would probably be the best place to move it if possible.

agreed. if you're moving, you might aswell take your son with you:D
family members can be linked to your account, reducing charges overall.