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H-L introduces a Tracker Platform Charge
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That's really sneaky. I nearly fell into the trap.
Basically, it is saying nothing. In effect all it is saying is that you can buy at launch but we know that already since they are promoting this particular fund like anything (there are other funds also being launched at similar time but not being promoted like this).
You still get the 4% saving even if you buy after the launch.
Really sneaky of HL.
Just been looking at hl's new SIPP loyalty bonus. There's a fund checker but I had to enter 4 funds before I found one that offered any bonus at all. I can see why posters above see hl marketing as suspect
Makes me even more tempted by Fidelity's 0.5% to move :cool:
If anyone knows of a list of funds that attract the HL loyalty bonus that would be good. Maybe I can't find such a list as it contains all the bad or high TER funds
Like me they have probably fallen for cheapness or goodies.
I am with all the supposed baddies, although I ain't complaining:)
Santander - Mortgage .95% above base rate - ISA 4%
EDF - Decent tariff fixed until 2014
Primus - Line saver £6.29p
There is exit fees I guess
Look at the annual saving listed now. That'll or similar will apply in future I guess
or £3 for every £1000 invested per year
Unofficially it looks like the 'clean' HSBC trackers (the TER is 0.1% lower than the existing class) will be available around mid-November direct from HSBC and without any additional platform fee (I say direct, it would be more accurate to say via the HSBC Global Investment Centre).
So not only will HL be charging £24pa per HSBC tracker fund (so £96pa if you hold 2 funds both with and without an ISA wrapper for example) but they will charging an extra 0.1% annual charge as well.
It is worth remembering that in a news article a while back a HSBC spokesperson said they were paying commission to HL on the HSBC trackers possibly 0.125% per annum (HL won't tell us what commission they receive because they don't seem to want to be open with their clients unlike some other platforms).
So HL won't want to offer the clean classes of HSBC trackers through their platform (without imposing further holding fees) because they will lose their secret commission and we know how greedy they are.
The highest discount I saw for the Wealth 150 funds was 0.375% for four funds. Mean looks to be between 0.1 and 0.15%, though that's without calculating it and without any weighting for the amount of money their customers have in each fund.
I'm beginning to lose the plot with the charging terminology. I'm used to seeing TERs and AMCs seemingly used as interchangeable.
In the above link from SnowMan, HSBC are showing an estimated ongoing charges figure (OCF), so how do I compare this to say a Vanguard tracker, which only indicates TER/AMC?
Central to RDR has been the intention to remove the bias of intermediaries for more profitable investments but how HL deal with low cost trackers will be interesting. If they intend to maintain the 0.6-0.7% they currently take from clients then they aren't likely to be competitive on the HSBC funds or even the trackers available direct from L&G at from 0.4%. Presumably they'll still want to promote the pricier funds they can come closer to being be competitive on - despite RDR.
In particular, it doesn't include the trading costs of the fund for buying or selling assets such as the broker's fees, the market-maker's charges contained in the spread, or stamp duty. Nor are performance fees payable included.
So you might be wondering why they bothered with the change...
*Edit: Or even the OCF.