Hargreaves Landsdown's 500% increase in charges

traineepensioner

Hi

I currently hold £30K of SWIP FTSE All Share Index (SWIP Foundation Growth) Class B GBP Income with Hargreaves Lansdown. My current charges are 0.09% fund managers charge and a £24 per year platform charge to HL. I've just received a letter from HL saying that the platform charge is going to be replaced with a 0.45% fund charge. Is this correct? For me this is an increase of well over 500% on HL current charges and is 500% more than the fund managers charge for administering the entire fund.:mad:
Please tell me I've got this wrong.:(

Assuming this is correct, what are my options? Can I move this fund to a new platform provider? Would it be better to sell and buy an all share index ETF? Or just sell up and move to a new platform?.....Any recommendations?

Many thanks.

jimjames

No you are not wrong but also not the worse hit. One poster on here has their charges going from £24 pa to £1750 with a £500k portfolio in a single VLS fund.

Unfortunately there has been an element of cross subsidy so you've been paying less than others but you will probably find other providers that are cheaper for your situation.

kidmugsy

According to dunstonh on another thread, I have been subsidising you, traineepensioner. Imagine my relief that this is now going to stop!

dunstonh

I've just received a letter from HL saying that the platform charge is going to be replaced with a 0.45% fund charge. Is this correct?

yes

I currently hold £30K of SWIP FTSE All Share Index (SWIP Foundation Growth) Class B GBP Income with Hargreaves Lansdown.

What tax wrapper(s) are you using? Many people in the HL SIPP are going to be better off going back to a personal pension. (typical PPP on funds over £20k can get you 0.4% OFC for fund and product)

traineepensioner

"According to dunstonh on another thread, I have been subsidising you, traineepensioner. Imagine my relief that this is now going to stop!" ...sorry!

"What tax wrapper(s) are you using?"... no tax wrapper. I sold a single company share holding to buy this one for a bit of diversity. I have a pension from the same company and would be a bit stuck if they run into difficulties.:o

I'm a normal rate tax payer and already maxed on ISAs. Any recommendations for a similar holding with super low charges?

Thanks again.

grey_gym_sock

you could use ETFs - they have dealing charges, but there's still no charge to hold them unwrapped with HL.

i don't think there a good ETF for the all share index, but there is VUKE, costing 0.1%, for the FTSE 100 index (which is c. 80% of the all share index).

and you could add a FTSE 250 ETF (which is another c. 15% of the all share index) - HMCX, costing 0.35%; or MIDD, costing 0.4%.

Freefall123

I have 12000 ( in a HL vantage ISA) in a Vanguard Lifestrategy 80 fund and charges are going to go from £24pa to £57 ish. Is there an equivalent ETF or ETFs that I could use so the charge is capped at £45 or its not going to be worth adding anymore. Otherwise who would it be cheapest to keep the VLS fund with in an ISA?

I would probably just sell the VLS fund and buy more of the other funds I have, stop my monthly contributions into my HL ISA and start with another provider this next tax year.

nicknameless

dunstonh wrote: »

yes



What tax wrapper(s) are you using? Many people in the HL SIPP are going to be better off going back to a personal pension. (typical PPP on funds over £20k can get you 0.4% OFC for fund and product)

Are there PPPs where you can invest in vanguard funds that come out this cheaply do you know?

kidmugsy

There's an IT all-share tracker, Aberdeen UK Tracker Trust plc.
It reports annual management fee 0.25%, Ongoing Charges 0.3%.

I don't know whether the 0.25% is included within the 0.3%. Do you know, Jay Grymsock?

gazpacho_uk

HL are removing negative comments on their facebook page almost as quickly as as anyone posts them ..... I think they might just be getting the message

Glen_Clark

jimjames wrote: »

One poster on here has their charges going from £24 pa to £1750 with a £500k portfolio in a single VLS fund.

I don't understand why he is going through a middleman (Hargreaves Lansdown). With £100k or over he could go direct to Vanguard for their VLS fund and pay nothing.