HL to III

Geoffo_M

gowgowuk wrote: »

Hi Geoffo,
I am exactly in the same situation as you (with 20 funds in HL S&S ISA, but about £40,000 in total) and therefore follow your move very closely!
About the £360pa fee: should you not also factor their loyalty rebate and which is *supposed* to get higher for many funds on 1st March? (or did I not get that right?)
I've done the calculation for my ISA and concluded that before having that info, I wouldn't know if it is my interest to transfer or not...

Hi gowgowuk, that's a good point I hadn't considered the Loyalty Rebate and wasn't even aware it was going to get higher form the 1st March, might not be such a good deal moving away then anyway then. I've just opened an account with II now & have just downloaded their Transfer Form. Suppose to be honest though I'd love not to go through all this & move my funds, I was bit disappointed when that chap was interviewed on the news from HL, he was like a politician & sounded as if he wasn't answering the questions, just saying how great HL still was without saying why, just made me a bit distrustful. Good luck if you decide to move

gowgowuk

Geoffo_M wrote: »

Hi gowgowuk, that's a good point I hadn't considered the Loyalty Rebate and wasn't even aware it was going to get higher form the 1st March, might not be such a good deal moving away then anyway then. I've just opened an account with II now & have just downloaded their Transfer Form. Suppose to be honest though I'd love not to go through all this & move my funds, I was bit disappointed when that chap was interviewed on the news from HL, he was like a politician & sounded as if he wasn't answering the questions, just saying how great HL still was without saying why, just made me a bit distrustful. Good luck if you decide to move

HL is saying that the "typical loyalty bonus" will rise form 0.17% to 0.75%. At the moment, my average loyalty bonus is 0.19%. I tried to make the calculation making an "imaginary new loyalty bonus " of 0.5% (to try to be a bit conservative) and found that the difference in cost with II (less than £100) might not be worth the trouble....

koru

gowgowuk wrote: »

HL is saying that the "typical loyalty bonus" will rise form 0.17% to 0.75%. At the moment, my average loyalty bonus is 0.19%. I tried to make the calculation making an "imaginary new loyalty bonus " of 0.5% (to try to be a bit conservative) and found that the difference in cost with II (less than £100) might not be worth the trouble....

But II already rebates all commission on dirty funds, so I'm not sure why this would change your decision. HL increasing the "loyalty bonus" just means they are now catching up with II in this respect, but they are still charging you a higher platform fee.

gowgowuk

Are they? I thought they would rebate only part of it. For ex, if I take the fund fact sheet for one of my funds (http://www.iii.co.uk/investing/factsheet/BG87), it says:
AMC (total charge); 1.5%
rebate: 0.69%
making the net charge of 0.81%
or am I not understanding the charges properly?

koru

gowgowuk wrote: »

Are they? I thought they would rebate only part of it. For ex, if I take the fund fact sheet for one of my funds (http://www.iii.co.uk/investing/factsheet/BG87), it says:
AMC (total charge); 1.5%
rebate: 0.69%
making the net charge of 0.81%
or am I not understanding the charges properly?

That will be all of the commission that they receive. The underlying platform, Cofunds, seems to keep some of the commission, which is why the rebate is 0.69% rather than 0.75%. However, HL have not promised to rebate all of their commission, either.

You might find that HL's rebates are a tiny bit higher than II, on average, if HL's claim of 0.75% turns out to be correct.

But my point was that you should not be saying to yourself that the HL platform fee is not that high once you have knocked off the new loyalty bonus. At most, you could say that HL costs 0.45% and II costs £80 pa plus maybe 0.1% in lower rebates.

Sparky47

koru wrote: »

That will be all of the commission that they receive. The underlying platform, Cofunds, seems to keep some of the commission, which is why the rebate is 0.69% rather than 0.75%. However, HL have not promised to rebate all of their commission, either.

You might find that HL's rebates are a tiny bit higher than II, on average, if HL's claim of 0.75% turns out to be correct.

But my point was that you should not be saying to yourself that the HL platform fee is not that high once you have knocked off the new loyalty bonus. At most, you could say that HL costs 0.45% and II costs £80 pa plus maybe 0.1% in lower rebates.

Plus the fact that when you eventually switch to clean funds there is no commission to rebate anyway on either platform.

koru

Sparky47 wrote: »

Plus the fact that when you eventually switch to clean funds there is no commission to rebate anyway on either platform.

Yes, although HL might have lower clean AMCs on some funds where it has a "super-clean" deal that is not available with II.

Sparky47

koru wrote: »

Yes, although HL might have lower clean AMCs on some funds where it has a "super-clean" deal that is not available with II.

Yes, although we will have to wait until 1st March to find out details of HL's super clean funds.
Somehow I doubt that any cheaper funds they may have will outway the extra cost of their platform fee.