hargreaves and landsdown exit fee

naedanger

george4064 wrote: »

Anyone got a better suggestions for me to transfer? Or thoughts in general?

(I don't mean to hijack this thread, should I make a new one?)

(Since you ask, I think it probably would be better if you started a new thread for your question as the OP's query seems to still be active.)

Regarding your question, I am no fan of HL. But as you are only paying around £24 in fund related charges I am not sure if it is worth paying all the transfer costs. (Five or six years to pay back the transfer costs seems a long time and things could change meantime.)

You could move only the investment incurring the c. £24 fund related charge to the Halifax. This would save you c. £12 per year and so the payback period would be quite short (c. 2 years if I am correct in thinking the transfer cost would only be £25). Of course you would then have the inconvenience of not having all your holdings on the same platform, so it is probably not worth the bother.

If HL ever materially increase their charges, like they have done in the past, you may then be able to insist on a penalty free exit.

By the way I have no knowledge of Halifax's or HL's charges and so the above is just based on what I have inferred from other posts on this thread.

Al.

HL offers a great 'experience' but the liability for choosing the funds remains with you, and those costs certainly add up. My other concern is that in times of slump, investors sell their funds at the wrong time thereby losing out. HL is great at suggesting funds de la jour, which means strategising is difficult. Notwithstanding that, what the two of them created was nothing short of masterful.

w00519772

The charges of Halifax Share Dealing are detailed here: http://www.halifax.co.uk/sharedealing/our-accounts/stocks-and-shares-isa/. It appears that they charge £12.50 every time you swap funds plus £12.50 per year. This seems a lot to me.

grey_gym_sock

w00519772 wrote: »

The charges of Halifax Share Dealing are detailed here: http://www.halifax.co.uk/sharedealing/our-accounts/stocks-and-shares-isa/. It appears that they charge £12.50 every time you swap funds plus £12.50 per year.

except that £12.50 is to buy or sell, so a swap would incur 2 charges. however, if you use the "regular" investment for buys, that's only £2 each time.

This seems a lot to me.

that depends on the size of your ISA, and how often you buy and sell.

e.g. if your ISA is worth £10,000, then HL would charge you £45 a year to hold funds (0.45% of £10k).

cavendish online, or charles stanley direct, would charge £25 a year (0.25% of £10k).

halifax's charges depend on your dealing pattern. e.g. if you make 1 regular investment of £2 per month, plus 1 swap incurring 2 £12.50 charges, you'd pay a total of £61.50 a year. but if you don't deal at all during the year (and don't even add any new contributions to the ISA), you'd only pay £12.50 a year.

for most ppl, cavendish or CDS are the cheapest platforms on £10,000.

but now suppose you have £100,000 in an ISA.

HL charge £450 a year.

cavendish or CDS charge £250 a year.

halifax's charges are the same as on £10k, i.e. £61.50 or £12.50 or whatever.

so now halifax usually look very cheap. but you usually need to have a few 10s of thousands invested before that is the case.

w00519772

I bought some shares in a company ten years ago ie rgb holdings. They delisted from the London stock exchange last year and now trade on the Hong Kong stock exchange. Do any of these companies allow you to sell shares listed on the Hong Kong stock exchange?!

green_man

colsten wrote: »

Which ones can you not buy at Halifax? It may just be slightly disjointed web page design but the only ones I can think of that you can't buy at HSD are HL's own funds.

https://www.halifaxfundscentre.co.uk/

Sorry I've been away and missed this.

Have a look at that url and look for Newton funds (BNY Mellon managers) you will see that only institutional class funds are available. This is just one example I have found dozens more.

Chino

grey_gym_sock wrote: »

but now suppose you have £100,000 in an ISA.

HL charge £450 a year.

If you have £100,000 of funds in an ISA.

If you have £100,000 of shares, investment trusts, ETFs, gilts or bonds, it's £45 a year.

http://www.hl.co.uk/investment-services/isa/savings-interest-rates-and-charges

Plus

green_man wrote: »

Have a look at that url and look for Newton funds (BNY Mellon managers) you will see that only institutional class funds are available. This is just one example I have found dozens more.

Generally, having access to institutional class funds is a benefit, not a problem.

In the old days, there were Retail class funds (minimum purchase £1000) and Institutional class funds (minimum perhaps £1m). Post-RDR the retail funds, which paid a hefty backhander to your platform from the management fee, have mostly gone away, and the institutional funds are the 'clean class'. That means you only pay the basic management fee to the manager, and then the platform is billed separately. This enables you to pick a low cost platform and cut your fees, rather than the platform gobble them behind the scenes (or a few crumbs thrown as 'loyalty bonuses').

So if you can buy institutional funds, with lower costs and no longer a massive minimum purchase, it's better to do that.

green_man

Plus wrote: »

Generally, having access to institutional class funds is a benefit, not a problem.

In the old days, there were Retail class funds (minimum purchase £1000) and Institutional class funds (minimum perhaps £1m). Post-RDR the retail funds, which paid a hefty backhander to your platform from the management fee, have mostly gone away, and the institutional funds are the 'clean class'. That means you only pay the basic management fee to the manager, and then the platform is billed separately. This enables you to pick a low cost platform and cut your fees, rather than the platform gobble them behind the scenes (or a few crumbs thrown as 'loyalty bonuses').

So if you can buy institutional funds, with lower costs and no longer a massive minimum purchase, it's better to do that.

If this is the case then great, I looked at the fund documentation which states min investment is £10 million ( or similar), so assumed this was a none starter for me. Are you saying I can invest something in the 1-5k range?

dunstonh

green_man wrote: »

If this is the case then great, I looked at the fund documentation which states min investment is £10 million ( or similar), so assumed this was a none starter for me. Are you saying I can invest something in the 1-5k range?

In the days of retail funds and institutional funds, then it was clearly an advantage to get institutional. However, since unbundling, you either got a new clean share class or the fund house just used their institutional share class to fill that role.