Danny Cox of Hargreaves Lansdown being pulled apart on Radio 4 Moneybox over new fees

Rollinghome

Will be very amusing if, after all these years of HL rubbishing tracker funds because they paid them less commission, they now really do include the L&G FTSE 100 tracker in their new Wealth 150 or even Wealth 150+.

Especially as the total cost with their 0.45% fee + the OCF will be close to 0.60% whereas there are currently several excellent trackers around 0.25% that they've been rubbishing. Further, the L&G FTSE 100 has been a terrible example of a tracker falling 13% behind the FTSE 100 it was supposed to track over the last 5 years and 25% behind the All share. No wonder they're cutting the charge.

If this is typical the much vaunted Wealth 150+ could make HL look even more like the bunch of fast-talking wide-boys that so many people already think they are.

grey_gym_sock

i think they said (in the analysts presentation) that they weren't putting any tracker funds in the 150.

which is logical in a way ... if you want trackers, you can go to their page on trackers (which is actually very informative nowadays).

Rollinghome

That would figure, it wouldn't go down well with fund managers if HL promoted their least profitable funds.

nicknameless

Freecall wrote: »

In Which PPP's could Daneb hold his/her VLS funds?

Or which equivalents exist? Would be good to get an indication, as while PPs at 0.4% would be cheaper, if you can't invest in funds you want to .................

Time and time again people talk about PPs instead of SIPPs but are there ways to invest in vanguard or an equivalent buy and forget automatically rebalanced fund using passive investment?

gadgetmind

Deneb wrote: »

After a bit of googling, I found that BestInvest appear to cater for VLS funds within a SIPP or ISA with no setup or transfer in charges, will pay the cost of transferring from HL, no dealing charges for funds and an annual platform fee for VLS60 of 0.31%.

Plus £60 pa for an ISA (£120pa for SIPP) for the "custody fee" for holding something that doesn't give BestInvest a kick-back.

gadgetmind

nicknameless wrote: »

Time and time again people talk about PPs instead of SIPPs but are there ways to invest in vanguard or an equivalent buy and forget automatically rebalanced fund using passive investment?

I use a Friend's Life fund called "Balanced Index Enhanced Fund of Funds", which uses active asset allocation on top of mostly passive investments. I pay sub 0.5% pa and am very happy with it.

http://www.cavendishonline.co.uk/pensions/personal-pensions/friends-provident/

My wife's SIPP may well drift in that direction unless I see a better option for a pot of around £40k.

Deneb

dunstonh wrote: »

Is there any reason you prefer a SIPP and the vanguard VLS fund when similar options are available on PPPs at lower cost. 0.40% OFC inclusive of wrapper and fund for example is possible.

Dunston, is 0.40% overall possible with a holding of my size though? Having looked at PP options through Cavendish, who I am quite happy with fee-wise for our ISAs, it looks like PP provider AMCs with a circa £30K pot range from 0.45% to 0.70% plus fund charges after the Cavendish discount.

Skandia, who you mentioned in a previous post, charge 0.75% plus fund charge for a holding of less than £50K. Friends Life charge 0.5% for transfers in, more for new purchases.

On those figures, 0.45% plus fund charges in HL's SIPP is looking cheap to comparative, although admittedly the situation changes with larger holdings.

dave875933

Not in the R4 interview, but from a What Investment article, Mr Cox says:

Outlining precisely what an investor gets for his or her £30 per stock valuation Cox commented: 'If a client has died and their estate is being valued for probate purposes, it's not as simple as looking up that day’s share price for each of the holdings in the account and saying that that is the value of the holding. Nor is it necessarily as simple as looking up the share price on the day of death.


'On many occasions the executors of the estate will ask for "quarter-up" pricing on each individual stock, and that price has to be calculated. Many people will have gone to a solicitor in the past, and they would have come to us to do this anyway.’



Cox explained that the 'quarter-up' price of a share is 25 per cent of the difference between the highest and lowest price of a stock on a particular day, plus the lowest price. When an estate is entering probate, this is the price at which all stocks will be valued for the purposes of valuing the estate.

Is quarter-up really that difficult to work out that it's £36 per stock?

jamesd

No. It's probably completely automated apart from entering the relevant dates. High/low/close pricing records are routinely recorded in many places.

dunstonh

Dunston, is 0.40% overall possible with a holding of my size though? Having looked at PP options through Cavendish, who I am quite happy with fee-wise for our ISAs, it looks like PP provider AMCs with a circa £30K pot range from 0.45% to 0.70% plus fund charges after the Cavendish discount.

You typically need 20k plus to get to 0.4% pricing.

Skandia, who you mentioned in a previous post, charge 0.75% plus fund charge for a holding of less than £50K.

That is Skandia life. Not Skandia investment solutions. However, dont rely on old posts as pricing is fluid and SKandia Inv Solutions has been affected by the platform review and is no longer low cost.