My current and future costs with HL

hyposmurf

I'm trying to get an idea of what my current charges are with Hargreaves Lansdown. Hopefully this post will help others calculate their costs with H&L. I've used the clean funds provided by Charles Stanley's website to get an idea of the clean funds prices H&L will likley charge. I could be using the wrong class and HL funds might offer different charges.I have funds that are below the loyalty bonus threshold with H&L, so don't receive that.I also have some funds with Chartwell Co-funds and also looking to transfer my small (£16k) stakeholder pension to either a personal pension or SIPP.Will consider those after I've sorted charges for H&L.

I'm likely to have missed something with my costings and would appreciate it if someone could just have a quick look and correct me if I'm wrong. Hopefully this post will help others calculate their costs with H&L.

Current costs
Baring German Growth £449.07@1.57% =£7.05
BlackRock North American Equity Tracker £629.10@0.56% £3.52
JPMorgan Emerging Markets £221.57@1.68% 3.72
JPMorgan Natural Resources £621.76@1.68% £10.45
Royal Mail PLC £1,369.95*0.5%=£6.85

£31.59 total cost of charges

New pricing using clean fund prices from charles-stanley
Baring German Growth £449.07@1.47%=£6.60
BlackRock North American Equity Tracker 629.10@0.16%=£1
JPMorgan Emerging Markets £221.57@1.18%-£2.61
JPMorgan Natural Resources £621.76@0.93=£5.78
Royal Mail PLC £1,369.95*0.45%=£6.16

£15.99*0.45%=£2.81
£15.99+£2.81=£16.44 total cost of charges

jimjames

Not totally sure of your calculations but the 0.45% from HL is based on your whole portfolio of funds not on the commission. I've not added up but for approx £1800 in funds you'll pay 0.45% x £1800 = £8.10 plus all the management fees you've calculated for each fund.

I'd also expect the fund AMC to be much lower than you've quoted for the Baring fund.

masonic

hyposmurf wrote: »

New pricing using clean fund prices from charles-stanley
Baring German Growth £449.07@1.47%=£6.60
BlackRock North American Equity Tracker 629.10@0.16%=£1
JPMorgan Emerging Markets £221.57@1.18%-£2.61
JPMorgan Natural Resources £621.76@0.93=£5.78
Royal Mail PLC £1,369.95*0.45%=£6.16

£15.99*0.45%=£2.81
£15.99+£2.81=£16.44 total cost of charges

Maybe I'm missing something, but the sum of the charges you've listed is £22.15 and then on top of that (except Royal Mail where you've included it), you would need to add the 0.45% x £1921.50. Total ~£31.

Lokolo

The Baring Fund is wrong, it is 0.82%.

As above, the platform charge (0.45%) is based on your holding size.

hyposmurf

jimjames wrote: »

Not totally sure of your calculations but the 0.45% from HL is based on your whole portfolio of funds not on the commission. I've not added up but for approx £1800 in funds you'll pay 0.45% x £1800 = £8.10 plus all the management fees you've calculated for each fund.

I'd also expect the fund AMC to be much lower than you've quoted for the Baring fund.

Many thanks to you all, I missed the 0.45% off my other funds and Baring fund had wrong TER.

The class of funds I've used from CS are they likely to be the same class that HL will use?

I've also used the TER from CS rather than the AMC.H&L have AMC on their site don't they?So I'd have an unfair comparison between AMC & TER charges?

The 0.45% is applied to my whole portfolio, but is it applied after the fund charge is taken?

Lokolo

hyposmurf wrote: »

Many thanks to you all, I missed the 0.45% off my other funds and Baring fund had wrong TER.

The class of funds I've used from CS are they likely to be the same class that HL will use?

I've also used the TER from CS rather than the AMC.H&L have AMC on their site don't they?So I'd have an unfair comparison between AMC & TER charges?

The 0.45% is applied to my whole portfolio, but is it applied after the fund charge is taken?

The fund charge is taken from the fund pot, so you won't see it. But say your fund had a 1% charge, was valued £100 and had no change, you would see it drop to £99 after 1 year. It changes the unit price of the fund.

The 0.45% platform charge is taken out of different areas depending on where there is money. I believe first is cash in the ISA.

HL will be using the same share class for most, but not all. They claim they have negotiated with fund managers for lower cost classes.

hyposmurf

HL will be using the same share class for most, but not all. They claim they have negotiated with fund managers for lower cost classes.

I take it that the ones they negotiated lower charges on will be the 27 no.wealth 150 funds?

hyposmurf

I have £2100 in 4 funds, monthly payments into 3 of these (thus 36 payments per year)
£1300 in shares no further purchases
£16000 in my SIPP, that I pay £200 month into.
Nothing in the dealing account

Just put these into Snowman's spreadsheet and the cheapest seem to be Best invest and close Brothers.Does that sound correct or am I mis-reading the spreadsheet or have used it incorrectly?

Anyone have any experience of BestInvest? I was looking to move to Charles Stanley direct before.

masonic

When I was comparing options I found that my trading habits significantly affected the results, but I was willing to adapt to get best value from my chosen platform, so I ended up playing out several different scenarios to work out who was really cheapest after concessions I was willing to make.

hyposmurf

Thanks for the reply Masonic.I tried reducing to 24 and 12 fund payments per year and not much in it.Interesting as I initially thought Charles Stanley would work out cheaper by looking at their platform charges.

0.25% for CSD
0.4% for BI

It's possibly the SIPP

£120 CSD
£48 BI

masonic

hyposmurf wrote: »

It's possibly the SIPP

£120 CSD
£48 BI

Yeah, the combination of SIPP and ISA throws up a slightly unexpected result. If you can cope with splitting up the SIPP and ISA, then you'll find CSD is better for the ISA and BI is better for the SIPP. I don't know if the difference would be worth the extra hassle.