Late payment of dividends from Hargreaves Lansdown

fire_in_progress

Hi everyone,

I own the same Vanguard ETF VWRL Distribution with three different brokers - iWeb, Fidelity and Hargreaves Lansdown.

I've noticed that Hargreaves Lansdown is always the last to credit my account with these dividends - this time (September) it seems it will happen on Monday 30 (in comparison, iWeb was the first on 26/09). 

Has anyone noticed this and knows the reason? I am tempted to say that Hargreaves earns some interest on these dividends which in aggregate might be a tidy sum for them.

wmb194

fire_in_progress said:

Hi everyone,

I own the same Vanguard ETF VWRL Distribution with three different brokers - iWeb, Fidelity and Hargreaves Lansdown.

I've noticed that Hargreaves Lansdown is always the last to credit my account with these dividends - this time (September) it seems it will happen on Monday 30 (in comparison, iWeb was the first on 26/09). 

Has anyone noticed this and knows the reason? I am tempted to say that Hargreaves earns some interest on these dividends which in aggregate might be a tidy sum for them.

Yes. It's brokers being tardy, nothing new. I only have corporate bonds with HL at the moment and it's never credited a coupon to my account on time, it's always three+ working days late. I think HL's a terrible broker but it doesn't charge an account fee for bonds so I put up with it. Similar with iWeb, usually a couple of days late.

I'm going to tempt fate but since I started using CMC Invest early last year it's had a 100% record for paying on the due date, with dividends and interest sitting there first thing in the morning. HSBC's investment account for OEICs in my experience is similar with a c.99% record. Trading212's good as well, usually in the afternoon on the due date.

Freetrade's pretty good but hit and miss, sometimes in the evening on the due day but often next day. I had one that was more than two weeks late, though, and it went through a period where they were always multiple days late but recently it's back to due date or next. Freetrade does back date them on the account statement to the due date so hopefully that means you don't lose out on some interest but I haven't checked the calculations.

masonic

fire_in_progress said:

Hi everyone,

I own the same Vanguard ETF VWRL Distribution with three different brokers - iWeb, Fidelity and Hargreaves Lansdown.

I've noticed that Hargreaves Lansdown is always the last to credit my account with these dividends - this time (September) it seems it will happen on Monday 30 (in comparison, iWeb was the first on 26/09). 

Has anyone noticed this and knows the reason? I am tempted to say that Hargreaves earns some interest on these dividends which in aggregate might be a tidy sum for them.

Used to be that Interactive Investor was the slowest. I think they got better. It probably varies over time. Out of interest, who gives the best and worst exchange rate?

fire_in_progress

Thank you for your replies.

So far, it would seem Fidelity - but the difference is tiny. I won't know about H&L until Monday, I guess.

It's not just about them pocketing the interest during the week-end. I hate to have to wait for them before I "close" my spreadsheet for this month! :-)

masonic

VWRP is a possible solution to that problem. I guess there will be some ERI either way. Unless you are taking the income.

GeoffTF

Vanguard's own platform is the slowest dividend payer in my experience.

vincit_veritas

I have my investments with Fidelity.  There are two dividend payments I expected on Friday November 29th, the date stated by both the Investment Trusts themselves.  Up to now, payments have always appeared in my account on the stated date.  This time round, one arrived on Monday December 2nd, and the other has not yet (December 3rd, 5.42 pm) appeared at all.

aroominyork

masonic said:

fire_in_progress said:

Hi everyone,

I own the same Vanguard ETF VWRL Distribution with three different brokers - iWeb, Fidelity and Hargreaves Lansdown.

I've noticed that Hargreaves Lansdown is always the last to credit my account with these dividends - this time (September) it seems it will happen on Monday 30 (in comparison, iWeb was the first on 26/09). 

Has anyone noticed this and knows the reason? I am tempted to say that Hargreaves earns some interest on these dividends which in aggregate might be a tidy sum for them.

Used to be that Interactive Investor was the slowest. I think they got better. It probably varies over time. Out of interest, who gives the best and worst exchange rate?

That would be great to know, given my annoyance with Interactive Investor fleecing (IMHO) me. Snowman is around these days if he's looking for a task...?

poseidon1

aroominyork said:

masonic said:

fire_in_progress said:

Hi everyone,

I own the same Vanguard ETF VWRL Distribution with three different brokers - iWeb, Fidelity and Hargreaves Lansdown.

I've noticed that Hargreaves Lansdown is always the last to credit my account with these dividends - this time (September) it seems it will happen on Monday 30 (in comparison, iWeb was the first on 26/09). 

Has anyone noticed this and knows the reason? I am tempted to say that Hargreaves earns some interest on these dividends which in aggregate might be a tidy sum for them.

Used to be that Interactive Investor was the slowest. I think they got better. It probably varies over time. Out of interest, who gives the best and worst exchange rate?

That would be great to know, given my annoyance with Interactive Investor fleecing (IMHO) me. Snowman is around these days if he's looking for a task...?

Interactive investor are indeed pricey at 1.5% for deals up £24,999.   £25k to £49,999 an unappealing 1.25%

However, unlike any of the other large platforms you can buy and retain currencies in ii's Sipp and GIA accounts, as well as buy and hold foreign holdings in their domestic currencies.

 With this in mind, and in relation to US dollar investments, I make strategic purchases of dollars when weak against sterling  ( last occassion was when pound hit 1.31 dollars), and thereafter buy and hold dollar denominated investments ( last purchase was  VUAA).

Whenever a dollar investment is sold, the proceeds are retained in dollars ( earning a bit of interest) pending a new dollar investment purchase.  This ability to time purchases and sales of currencies as well as related currency investments, helps justify ( to myself) the high rate of commissions ii charge. 

HL' s currency charges are undoubtedly cheaper, but you can't hold currency ( as an asset class) , or dictate when conversion too and from sterling will occur. 

aroominyork

poseidon1 said:

aroominyork said:

masonic said:

fire_in_progress said:

Hi everyone,

I own the same Vanguard ETF VWRL Distribution with three different brokers - iWeb, Fidelity and Hargreaves Lansdown.

I've noticed that Hargreaves Lansdown is always the last to credit my account with these dividends - this time (September) it seems it will happen on Monday 30 (in comparison, iWeb was the first on 26/09). 

Has anyone noticed this and knows the reason? I am tempted to say that Hargreaves earns some interest on these dividends which in aggregate might be a tidy sum for them.

Used to be that Interactive Investor was the slowest. I think they got better. It probably varies over time. Out of interest, who gives the best and worst exchange rate?

That would be great to know, given my annoyance with Interactive Investor fleecing (IMHO) me. Snowman is around these days if he's looking for a task...?

This ability to time purchases and sales of currencies as well as related currency investments, helps justify ( to myself) the high rate of commissions ii charge.  

The fact that ii lets you play the currency markets doesn't justify their charges - it just makes it more convenient for you.

poseidon1

aroominyork said:

poseidon1 said:

aroominyork said:

masonic said:

fire_in_progress said:

Hi everyone,

I own the same Vanguard ETF VWRL Distribution with three different brokers - iWeb, Fidelity and Hargreaves Lansdown.

I've noticed that Hargreaves Lansdown is always the last to credit my account with these dividends - this time (September) it seems it will happen on Monday 30 (in comparison, iWeb was the first on 26/09). 

Has anyone noticed this and knows the reason? I am tempted to say that Hargreaves earns some interest on these dividends which in aggregate might be a tidy sum for them.

Used to be that Interactive Investor was the slowest. I think they got better. It probably varies over time. Out of interest, who gives the best and worst exchange rate?

That would be great to know, given my annoyance with Interactive Investor fleecing (IMHO) me. Snowman is around these days if he's looking for a task...?

This ability to time purchases and sales of currencies as well as related currency investments, helps justify ( to myself) the high rate of commissions ii charge.  

The fact that ii lets you play the currency markets doesn't justify their charges - it just makes it more convenient for you.

I did say I justify it to myself, the vast majority of DIY investors ( on this forum ) do not want or require foreign currency access. 

As I also said,  HL 's currency  exchange charges  are way cheaper if you are happy to retain all investments and cash in sterling.  Good to have choices, one makes personal decisions as to how much one is prepared to pay to  access those choices.