Changing Fund Charges ...

preston03

Does anyone have experience of investing into a fund (via say Hargreaves Lansdown) and the charges suddenly changing?

For example - I choose to invest in Fund X

I look on the fees and charges section - and they're charging 1.00%

I think = "Great - I'll set up a regular payment into that fund"

Six months - I've made 6 montly payments - I check on the charges - and I find that the charges are now 2.00% - and have been for five months

Should I expect Hargreaves Lansdwown to have made me aware ? Is that too much to ask?

Or do they expect everyone to look every month before the regular payment cycle goes through ?

Do they have any responsibility to make current investors into that fund aware of the changes to charges (up or down) ?

jamjar92

Not sure what the term and conditions say for HL, but mine says they may change without notice and its my responsibility to read the fund guide.

preston03

Cheers - if that's the case - I think its pretty !!!!!! poor

Can't be that hard to make existing customers aware  - can it .... ?

You'd have thought it would be good practice - and they'd want to be seen to offer a good service

squirrelpie

preston03 said:

Cheers - if that's the case - I think its pretty !!!!!! poor

Can't be that hard to make existing customers aware  - can it .... ?

You'd have thought it would be good practice - and they'd want to be seen to offer a good service

You could always suggest it to them. They might take some notice.

Thrugelmir

preston03 said:

Should I expect Hargreaves Lansdwown to have made me aware ? Is that too much to ask?

No. Yes.
Has anything actually fundamentally changed. As unusual for charges to double. 

IvanOpinion

What fund is it?  Was there any kind of introductory offer ?

Notepad_Phil

What charge has changed and where did you find details of it? If it's come from a MFID document then be aware it can contain 'charges' that are kind of meaningless.

dunstonh

Does anyone have experience of investing into a fund (via say Hargreaves Lansdown) and the charges suddenly changing?

The platform has nothing to do with fund charges changing.

I look on the fees and charges section - and they're charging 1.00%I think = "Great - I'll set up a regular payment into that fund"
Six months - I've made 6 montly payments - I check on the charges - and I find that the charges are now 2.00% - and have been for five months

Small changes would not be a surprise.  Especially if you are comparing ex-ante charges with ex post.   However, a difference of 1.0% to 2.0% is unheard of and suggest you are not reading it correctly.

Should I expect Hargreaves Lansdwown to have made me aware ? Is that too much to ask?

HL is not an adviser.   It is for DIY investors who self selected their investments.  So, its your job. Not theirs.  You are not paying them to do your work.

Or do they expect everyone to look every month before the regular payment cycle goes through ?

If you want to look every month then it is your job to do so.  That is the point of DIY investing.

Do they have any responsibility to make current investors into that fund aware of the changes to charges (up or down) ?

Again, DIY investing means it is your responsibility.  HL are only following your instructions.

That said, I suspect you are misreading.  Perhaps you only looked at the AMC ex ante and HL have disclosed the OCF, TC & IC ex post. (nobody should be looking at the AMC but some platforms still display it)

preston03

The fund i feel disappointed about effectively had a 5% introductory fee added ... so went from 0% to 5% (my 1% was an illustration)

The point about DIY investing I get ... but it's not difficult to be more helpful is it ??? Keeping customers happy ..doing the right thing ? 

Thrugelmir

preston03 said:

The fund i feel disappointed about effectively had a 5% introductory fee added ... so went from 0% to 5% (my 1% was an illustration)

Best to remain factual as illustrations merely cause puzzlement. What's the fund concerned?  Suspect that some context is required to provide a reasoned response to your question. 

preston03

Thanks for everyones collective interest - and challenge

It's a general point I'm making - but - "Yes" it relates to a particular fund - and 0% to 5% has happened.

So - the fund was quoted at say 300 ... and you could buy or sell at 300

I'd bought 6k in late Feb

I bought 6k more in mid March and didn't check the Fees and Charges section - my error I agree

Didn't check how many units I'd bought

I get an email from HL saying

On 16 March our website displayed the XXX FUND initial charge as 3%. Unfortunately, this was incorrect, the correct charge is 5%. As a result, you paid a charge of 5%.  

We’re very sorry for this and we’re correcting your trade so that you have the number of units you would have bought should the charge have been 3%.You don’t need to do anything we’ll take care of correcting your account and will be in touch once we’ve done so.

Once again, we’re very sorry this has happened.

So - The initial charge was net zero % in February,

They wanted to move it to 5% - but displayed 3% presumably - so they refunded me the 2%

It's now at 5%.