HL Fund charges am I missing something

192 Posts


I have had a S&S ISA with HL for about 9 years. It started and still is to some extent a bit of a play thing with both funds and stocks and TBH is a bit all over the place. It has actually done OK and shows a half decent return (more luck than judgement!). As I near retirement I decided about time I had a sort out.
I always knew HL were expensive but wasn't too bothered about it as I liked the website, app and service. However, a recent thread, on here I think, got me looking more closely.
For my sins, I have held a few of their multi manager funds (yes I know!). I have read a few articles regarding the performances and also that they were expensive so I did some digging.
A useful bit on morning star.

Based on investing £10,000 in this fund over a 5 years period with an expected return of 5%. The investment would be worth £11,102.65 and Total fees would be £1,407.13
If no fees were charged the Investment would be worth £12,762.82, this means your total return after fees is 11.03%
So if my basic 'O' level maths serves me, that is pretty dire. The HL charges are around 1.3% depending on which fund it is + I guess the 0.45% platform fee.
I also noticed that if I went to the individual funds that were shown as the top holdings in the multi manager fund, their individual charges were anything from 0.3% to around 0.7%
Is this as completely !!!!!! as I think it is or am I misreading it ?
Just to point out that this ISA plays no real part in my pension planning as I have enough in both DB & DC pensions.
I always knew HL were expensive but wasn't too bothered about it as I liked the website, app and service. However, a recent thread, on here I think, got me looking more closely.
For my sins, I have held a few of their multi manager funds (yes I know!). I have read a few articles regarding the performances and also that they were expensive so I did some digging.
A useful bit on morning star.
If no fees were charged the Investment would be worth £12,762.82, this means your total return after fees is 11.03%
So if my basic 'O' level maths serves me, that is pretty dire. The HL charges are around 1.3% depending on which fund it is + I guess the 0.45% platform fee.
I also noticed that if I went to the individual funds that were shown as the top holdings in the multi manager fund, their individual charges were anything from 0.3% to around 0.7%
Is this as completely !!!!!! as I think it is or am I misreading it ?
Just to point out that this ISA plays no real part in my pension planning as I have enough in both DB & DC pensions.
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If you are going to DIY, then the aim is to do it cheaper. Not double the cost.
Thanks, yes I understand that, but in effect surely you are paying it even if not directly. HL are paying it and charging you the difference for their cut ?
It's already included in the fund management fee of the HL fund. You are paying the sub-funds roughly 0.5% and the HL fund roughly 0.8%.
it makes them far more competitive with others, but once your balance grows to a sizeable amount - you may be better with a fixed fee provider such as Interactive Investor.
I am not too bothered with the 0.45%, its more the charges on their funds I was questioning.