HL customer charges custom offers

jamesd

Hargreaves Lansdown has offered some customers custom discounts on their normal fund management charges, so far only reported for those who have discussed leaving with them.

If you have received a custom charges offer from HL, what rate were you offered? This is an anonymous poll, best completed before you have decided whether to accept their offer.

Please also complete the custom caps poll.

jamesd

Known offers so far include:

• 0.25% for both ISA and SIPP (but presumably not their combined value, just individually), no revised cap mentioned.
• 0.20% on SIPP capped at £250k, nothing on amounts above that.
• Unknown terms, that partially prompted these polls to provide anonymous disclosure opportunities.
• 0.25% managed fund fee capped at £500 across all products held under one client number, so it takes effect after funds in SIPP, ISA and F&S account combined reach £200,000.

The last of those is the sort of thing it takes to compete with Fidelity and the not yet generally open Trustnet Direct, which has a cap at £80,000 but also dealing charges. Both use combined values across products in their caps.

lejog2003

Good idea. Perhaps it would be good if you can change the title to indicate its specifically funds management charges.

jimjames

Very interesting that they are resorting to this. I've not had any offer yet but very small portfolio with them as I'd already moved most of it away. Maybe worth contacting them as I'd consider a move back if they were matching Cavendish.

martin177

This is developing into a far from a level playing field .HL need to get their act together . All this does is confuse their customers even more. Speaking as someone who has yet to decide whether or not to move all of their investments away ....What do you have to do to get an offer?

hyposmurf

Received nothing so far, but I guess this is due to having a small pot of funds/shares.Those that have been offered custom charges have they got large pots, put in for a transfer to another provider or to cancel their account? So much for more transparent pricing, when they're offering custom charges.

lejog2003

For context you really need to read pages 12 of this thread, some people who have applied to transfer away from HL have been offered substantial discounts on funds management fees to stay. Probably only those with sizeable pots (my SIPP pot is £330k).

It all reminds me of a panic 50% off sale (only for those with large holdings who threaten to do something). They're still highly uncompetitive with the likes of ATS and iii for most of these folks though.

pip895

If true this is really good news - I would love to stay with HL but at .45 I have to move. I have moved a bit of cash over to CSD and am having a play - its OK but there are disadvantages + there is all the hassle & expense of moving.

Sterlingtimes

I spoke to several of HL competitors and all were very hungry to attract HL business following the several orders of magnitude fee hike. However, HL has been reasonable and we reached a very fair fee accommodation. I suspect that HL were shocked by their top fee ranking in the Telegraph: a model that favours investors with small pots but encourages investors with larger pots to move. You would think that HL marketing has a strategic intent of attacting small investors and losing its larger ones. All in order surely a flawed business model.

lejog2003

As this article explains Hargreaves points out about 80pc of revenue is recurring from existing clients. This creates a snowball effect in revenue and profits,

So their existing customer base acts as a cash cow and if they attract new customers with small investments, in time they add to the cash cow. But now some of the existing clients are realising how much HL are milking them, Interesting times ahead.

pip895

I have been pushing HL for a deal we have 6 accounts with them (isa, sipp & fund/share account for both of us) all sizable but only one account is over 250k. So far they haven't offered us anything. All I was given was the suggestion that I would be pleasantly surprised when the super clean pricing came in. :huh:

I wondered if deals are being done only for people currently predominantly in trackers etc. who will definitely be worse of post RDR. Has anyone currently in standard managed (dirty) funds been offered any kind of deal?