Hargreaves Lansdown Vantage ISA (Investment Trust) - tips on minimising charges?

Doc_N

Tom99 wrote: »

Can you not somehow use the £1.50 regular investment option to reinvest the 4 dividends? That's what I do with large dividends at Halifax Sharedealing rather than use the reinvest dividend option, which with them is 2% or £12.50.

Not sure about that, but I think it only applies to actual savings, rather than dividends:

"Equity regular savings
£1.50 per stock per month
Available on FTSE 350 shares, selected investment trusts and selected ETFs subject to a minimum of £25 per stock per month.

Reinvestment of income
1% (£1 minimum, £10 maximum)
In each account, if you choose automatic reinvestment, any dividends you receive will be reinvested once they reach £10 per holding."

Tom99

[FONT=Verdana, sans-serif]Have another look at the regular saving option next time you have a dividend to reinvest.

[/FONT] [FONT=Verdana, sans-serif]With Halifax you can set up a 'one off' regular investment. Seems odd since if it's 'one off it can't be regular but they allow that.

[/FONT] [FONT=Verdana, sans-serif]Alternatively can you alter the amount of your regular investment for the month after a dividend comes into you cash account then after that trade put the amount back down again. [/FONT]

greenglide

Can you not somehow use the £1.50 regular investment option to reinvest the 4 dividends?

You can do this in Youinvest and TD (now II) as the amount invested in the regular investment does not need to be the same as the direct debit amount. The direct debit amount can be set to zero and the regular investment is still made using any cash amount in the amount.

I use both these platforms this way.

With HL the amount invested appears to be tied directly to the direct debit amount so, it would appear, that you cannot the regular investment as a way of investing the dividends accrued.

Unless someone else has found a way? I have HL and would like to find a way.

jimjames

greenglide wrote: »

Unless someone else has found a way? I have HL and would like to find a way.

Could you withdraw the income and then amend the next DD payment to add that amount on, then reduce it again for the next month?

le_loup

Not a good idea if it's an ISA.

RobStaffs

le_loup wrote: »

Don't trade.

Buying and selling funds is covered by the 0.45% platform charge is it not? Therefore there is no additional charge and you can make multiple trades. I am aiming to have a combined platform fee and fund managers charge of under 1% for all my funds via HL.

Alexland

RobStaffs wrote: »

Buying and selling funds is covered by the 0.45% platform charge is it not? Therefore there is no additional charge and you can make multiple trades. I am aiming to have a combined platform fee and fund managers charge of under 1% for all my funds via HL.

That's correct however the OP's post was about Investment Trusts which are basically shares so would incur trading costs. If you want to hold funds then Cavendish have a platform cost of 0.25% with no trade costs too so might work out 0.20% cheaper than HL for your situation?

Alex

RobStaffs

Alexland wrote: »

That's correct however the OP's post was about Investment Trusts which are basically shares so would incur trading costs. If you want to hold funds then Cavendish have a platform cost of 0.25% with no trade costs too so might work out 0.20% cheaper than HL for your situation?

Alex

Oh I see what you mean. Btw your point about account exit charges is a good one. I think it is unfair to customers who have been with HL over a long period of time. I have been with them for nearly seven years and they get enough from me via the 0.45% charge.

Alexland

RobStaffs wrote: »

Oh I see what you mean. Btw your point about account exit charges is a good one. I think it is unfair to customers who have been with HL over a long period of time. I have been with them for nearly seven years and they get enough from me via the 0.45% charge.

You might be their ideal customer! Is it worth being more ambitious than trying to get your charges to below 1%? Even with a small portfolio it should be possible to get most asset mixes under 0.5% total? My two pensions are around 0.3% total fees each.

RobStaffs

Alexland wrote: »

You might be their ideal customer! Is it worth being more ambitious than trying to get your charges to below 1%? Even with a small portfolio it should be possible to get most asset mixes under 0.5% total? My two pensions are around 0.3% total fees each.

I have a unit lifestyle pension with AEGON which charges 0.6% I am not really good a DIY picking as I lack the confidence but I am at the point with HL where I need to be working out how to cut costs. I have about £160k invested on the HL platform so I am sure an IFA could work out a way forward. I also have too much tied up in cash savings.