Hargreaves Fund Watch

doberryfirkin

I note that Hargreaves are offering a new service that watches any other funds you may have so long as you make them the broker - Fund Watch. Does anyone know of any catch to this? I have a vantage ISA with them. Can't see if there are charges or difficulties down stream. Grateful for guidance.

cloud_dog

Unless I'm missing something, issn't this just the ability for you to run a 'watchlist' type portfolio in addition to your actual portfolio.

So if there are funds you are interested in but not in apsition to invest you can add them to your watch list and review their progress and then when you want to trade you just simply click on the trade button, rather than trying to search for them evrytime you want to check prices and possibly buy.

cloud_dog

RayWolfe

Part of their Master Plan to become your sole provider. ;-)
Once they know about your Other Holdings you will get a constant stream of begging letters/emails to get you to re-register.

Aegis

I still reckon that trustnet has the best portfolio tool I've seen. I trade through HL for my funds, but really am not all that interested in trying out their Fund Watch service (I get enough spam from them already!)

Let us know what it's like if you give it a go though.

munk

doberryfirkin wrote: »

I note that Hargreaves are offering a new service that watches any other funds you may have so long as you make them the broker - Fund Watch. Does anyone know of any catch to this? I have a vantage ISA with them. Can't see if there are charges or difficulties down stream. Grateful for guidance.

The 'catch' is that you have to change your registered adviser/broker to Hargreaves Lansdown - so if you originally purchased your funds via an IFA, they would no longer be the registered adviser after you sign up to the HL service.

From what I read on it, it sounds like a rather cloaked way of moving you over to HL so they're one step closer to you using their services rather than those of another IFA/broker.

How do I register for this service?

All you need to do is make us your broker so your investment managers will give us the details of your holdings. We will do the rest. This service is available to anyone who already has a Vantage ISA, SIPP, PEP or Fund and Share Account and holdings administered by over 40 major investment groups, listed above.

If you are already registered for Hargreaves Lansdown's online service you will simply need to complete our change of agency form to add holdings to your Other investments portfolio.

As your agent we will not be providing personal advice, and therefore if you are currently receiving advice this service may not be for you.

Perhaps not so cloaked I guess given the emboldened text above from the description of the service on their site...

One other thing to consider if you're thinking of transferring to HL (which is what this 'watch' deal involves afaict) is that you can get a referral bonus if you're referred to them by someone who is already registered with HL. The only deal I've seen so far is that each person gets a pair of binoculars(!), although maybe they have cash referrals as well? (Would be interested if anyone knows about this actually because I'm thinking of referring some people.)

doberryfirkin

Thanks to all who commented. I am suspicious of the motive for this and will be looking at trustnet or others that might be better. Got enough binoculars anyway! :-)

Coume

Morning,

I will be opening an H-L account in the next tax year to buy some specific funds only available through them and I was thinking to use this service to monitor my Fidelity funds.

munk wrote: »

The 'catch' is that you have to change your registered adviser/broker to Hargreaves Lansdown - so if you originally purchased your funds via an IFA, they would no longer be the registered adviser after you sign up to the HL service.

As I bought my current funds through Fidelity.co.uk, would registering to this service change anything for me or is it only affecting people who bought through an IFA? Because if I understand correctly, my funds would still be hold by Fidelity and I would still have to go through Fidelity.co.uk to sell/etc. my funds. Is this correct?
Would registering to this service affect my charges/fees/etc. in any shape or form?

Thanks in advance for your help!
Ludo

dunstonh

As I bought my current funds through Fidelity.co.uk, would registering to this service change anything for me or is it only affecting people who bought through an IFA? Because if I understand correctly, my funds would still be hold by Fidelity and I would still have to go through Fidelity.co.uk to sell/etc. my funds. Is this correct?

If you transfer the agency to HL then investments remain with Fidelity but they get the natural fund based trail instead. Not the IFA. Remember HL are IFAs so they have agencies with all providers so that is certainly possible for them.

If you re-register or transfer your holdings onto the HL platform, then the Fidelity account will be closed.

Coume

dunstonh wrote: »

If you transfer the agency to HL then investments remain with Fidelity but they get the natural fund based trail instead. Not the IFA. Remember HL are IFAs so they have agencies with all providers so that is certainly possible for them.

Thanks a lot for the quick reply.

I apologize but would you mind clarifying/explaining your bold expression because I am not sure to understand it?

Thanks again.
Ludo

dunstonh

I apologize but would you mind clarifying/explaining your bold expression because I am not sure to understand it?

Most unit trusts pay upto 0.5% commission to the servicing IFA or broker (some can pay more but they are not as common). This is known as trail commission.

So, whoever recommended the fidelity investments in the first place is getting the 0.5% p.a. unless you have appointed a new IFA or broker to take over. IF you transfer the agency from the old adviser to the the new one (which appears to be HL in this case), then HL will get the trail commission.

On their own platform, HL rebate trail between 0 and 0.25% on ISAs and unit trusts (but not pensions). If left on the fidelity platform they will not rebate trail.

it is worth noting that the size of the discount with HL is not that great unless you have very large amounts. Transferring your funds to HL could lose you more money than you would save. Just a few weeks back someone posted that they were out of the market for about 3 days for the transfer to take place and in that time the market went up a few percent. They were only saving around 0.15% p.a. so it would take well over a decade to make that up.

Coume

Thanks for this great explanation!
I will try to find a book that could explain me all these terms,etc. and how everything works, such book must exist...

Anyway, since HL would not rebate trail for using this service, I really cannot see why I should use their service then!