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Hargreaves hit as Vanguard targets DIY investors

Shares in UK's largest fund supermarket fall as US tracking fund giant Vanguard unveils consumer platform charging just 0.15% a year.

 
Hargreaves hit as Vanguard targets DIY investors

(Update) Low-cost US tracker fund giant Vanguard has vowed to shake up the UK investment market after launching its first consumer website in this country.

Shares in Hargreaves Lansdown tumbled 4.7% to £13.78 as shareholders worried about the competitive threat Vanguard's service would pose to the country's biggest fund supermarket which charges around four times as much as its US rival.

Fund managers Jupiter, Schroders and Aberdeen also saw their share prices wilt as the City reckoned Vanguard's move would increase the pressure on their margins.

Vanguard goes direct

Pennsylvania-based Vanguard has operated in the UK for eight years but its range of cheap index-tracking funds and exchange traded funds (ETFs) has only really been accessible to financial advisers and wealth managers given their minimum investment has been £100,000.

Vanguard has now slashed the entry level to £500 for one-off investments and to £100 for monthly contributions. This is designed to appeal to the growing army of DIY investors looking for cost-effective ways to deploy their savings in the stock market.

Sean Hagerty, managing director of Vanguard Europe, claimed the launch would 'lower the cost of investing' in the UK with its platform charging an annual fee of 0.15% of the first £250,000 of an investment.

The platform fee will not apply to amounts over £250,000 meaning the charge is effectively capped at £375.

On top of this, investors will pay an average annual ongoing charge figure (OCF) of 0.14% for Vanguard's tracker funds, taking all-in costs to around 0.29%.

This undercuts Hargreaves Lansdown, which despite offering thousands of funds, investment trusts and shares, looks expensive with its Vantage platform charging 0.45% a year and a typical fee of 0.69% on funds taking its total annual cost to around 1.1%.

Value for money

Hargerty said the City regulator, the Financial Conduct Authority, had been right to issue a hard-hitting report last year in which it criticised active fund managers for over charging customers and delivering below stock market returns.

'This is why we are launching our new service - we want to offer investors the value for money they deserve. We aim to offer investors the highest value investment products and services available with an unwavering commitment to lowering the cost of investing in the UK,' said Hagerty.

Founded by John Bogle in 1975 after a US stock market crash, Vanguard has become one of the world's biggest investment groups with assets under management over $4 trillion (£3 trillion). It operates a mutual structure like a credit union which means that the company is owned by the investors in its funds.

By not having to pay dividends to shareholders or big wages to fund managers, Vanguard says it has been able to steadily cut the charges on its index-tracking funds  as the business has grown. 

Its cheapest fund is the Vanguard FTSE 100 ETF , which has an OCF of just 0.06% while its most expensive is the Vanguard Global Emerging Markets  fund, with an OCF of 0.8%. 

In total 65 Vanguard exchange traded funds (ETFs), target retirement funds and actively managed funds are available on the new private investor website. 

Vanguard's Life Strategy range of funds, which invest in a mix of shares and bonds, has attracted over £5 billion from investors. It will be available with an OCF of 0.22% plus an annual account fee of 0.15%, bringing total costs to 0.37%. 

Investors can invest Vanguard's funds through an ISA (individual savings account), junior ISA and general investment account. The ability to invest via a self-selected personal pension (Sipp) is not currently available but will be added soon, the company said. 

According to Vanguard, an ISA investor with £10,000 would pay a total of £23 a year to invest in its FTSE UK All Share Index unit trust. Using figures from a survey by consultancy Platforum it said the same fund would cost an average of £49.58 on rival investment websites. The most expensive would charge £128 a year, it said.

Deal breaker

Hargreaves Lansdown's corporate adviser Numis Securities played down the competitive threat to the Bristol-based broker saying that Vanguard would be unable to offer a 'one-stop shop' as its website was restricted to its own funds and would not offer investments from other companies.

'We believe that not being able to have all of your assets in one place is a fundamental deal breaker and we are not concerned about the Vanguard offering,' Numis analysts said.

In later trading Hargreaves shares recovered some ground to stand 3.4% down at £13.98. They have risen 15% this year and have gained 175% in the past five years.

71 comments so far. Why not have your say?

William Phillips

May 16, 2017 at 12:31

Against the convenience of a one-stop shop is the risk of lodging retirement eggs in a single basket - even one with as good a name as Mr Bogle's. He will not always run Vanguard.

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Micawber

May 16, 2017 at 12:44

Agreed.

One can also bet that Vanguard's funds will never make HL's "Wealth 150" now....

But the additional downwards pressure on asset managers' and platforms' fees is welcome. They need to measure themselves against the benchmarks set by Vanguard if they are to justify fees that are any higher.

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William Phillips

May 16, 2017 at 12:57

HL is happy to offer Virgin's All-Share tracker, which still gets away with charging 1% OCF. How seriously do most investors shop around? HL got rich on inertia and the Wealth 150 skewed selection.

Incidentally, Morningstar has the Vanguard Footsie tracker on 0.09% pa, not 0.06% as stated here. I constantly notice such factual disparities among supposedly simple and transparent vehicles.

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Mickey

May 16, 2017 at 13:33

Hopefully this will not lead to job losses in the UK as investors flock to US based Vanguard.

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PaulSh

May 16, 2017 at 13:54

@Mickey, if the jobs lost are those of people who are paid unreasonably high salaries for simply watching over tracker funds then I for one will be glad to see them go.

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richard tomkin

May 16, 2017 at 14:57

I am with Alliance Trust Savings.I am not happy there,but am more or less captive since they charge £60 per holding as exit fee.This would be £1260 on my holdings.This is unconscionable verging on theft buit what can I do? Also,

when I do ring them,I can't always understand the Scottish dialect.

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RL

May 16, 2017 at 15:53

This article forgets to mention that HL fees are capped for ETF's

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Law Man

May 16, 2017 at 16:15

RL: correct, but more. For all non- OEIC funds inc ETFs, ITs, bonds, shares:

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Non-SIPP or ISA a/c: Vanguard charges 0.15%; HL nothing.

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ISA: Vanguard charges 0.15% with a maximum of £375; HL charges 0.45% with a maximum of £45.

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SIPP: HL charges 0.45% with a maximum of £200; Vanguard does not offer a SIPP.

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The Vanguard Lifestyle funds are excellent; but the Vanguard charges are not necessarily cheaper; and of course you are restricted to Vanguard products.

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Andrew B

May 16, 2017 at 16:36

Law Man - Thank you balancing the article with more facts in favour of HL

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DavidC

May 16, 2017 at 16:50

@Richard tomkin

Are you sure it's £60 per holding? AT's charges guide says "If you are transferring out to another provider, because it is a one off process for us, you just pay a one off charge, regardless of how many investments you hold in each Account." That's assuming it's an ISA or an IDA ("Investment Account"). If it is a "per holding" charge you could always switch into a single holding first.

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colin fellowes

May 16, 2017 at 17:00

That's all very true Law Man but there's no getting away from the fact that HL are still quite expensive compared with their peers. Their excellent customer service and informative website are, however, some compensation.

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Linda Green

May 16, 2017 at 17:22

With HL the caps apply to ETFs, Investment Trusts and shares, but not to funds, so it looks as if you have some money to put in a tracker fund [OEIC or Unit Trust] it would be cheaper with Vanguard, but other investments it could be more expensive, depending on how much money you are putting in?

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Law Man

May 16, 2017 at 17:36

Linda: you are correct. If Vanguard trackers are in OEIC form, and HL adds a 0.45% charge, they become expensive. Look for an equivalent ETF tracker (if available) e.g. from I-Shares or DB.

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Bestmate

May 16, 2017 at 18:02

@richard tomkin

I suggest you bite the bullet and quit. What I would do is talk to HL about the best way of tackeling this and perhaps withdraw from your current provider gradually, to mitigate affordability. I would not be held to ransom by these people indefinitely. ps: I suggest HL for service above all. I find them superb and well worth the little extra I pay for their services.

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Franco

May 16, 2017 at 18:09

Readers can carry on throwing figures at each other until kingdom come.

The fact is that independent sources, like Telegraph, Monevator etc have published tables showing that in typical cases HL charges are among the highest, with Fidelity not far behind. Cheapest of are platforms charging a flat fee, like Iweb, Halifax etc.

For those who like HL's service, a good compromise would also be to invest with them for ITs, ETFs and stocks and with Vanguard for funds. All neat and tidy.

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steggets

May 16, 2017 at 19:12

I'm with SVS and iweb, both cost me zilch.

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Peter Scuba via mobile

May 16, 2017 at 19:18

I switched from HL due to their Fund fees being too high, now with Interactive Investor who charge flat fees rather than the unfair % fund value fee. Although I'm happy with II I'll look into Vanguard more when they start offering a SIPP facility.

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Williamwonders

May 16, 2017 at 19:35

You can negotiate with HL on their .45% fund charges - think 0.25% if you have useful pot with them.....

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S_M

May 16, 2017 at 20:24

That's the key with HL, don't hold OEICs with them and if you have anything near a meaningful sized portfolio, it's great value for money with a great service.

I have created a concentrated small portfolio of IT's, Shares and ETFs from a small number of SERPs rebates and it's flown over the last 7 years with me keeping a large proportion of my hard earned gains!

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masud

May 16, 2017 at 23:03

Good luck Vanguard, please consider outside funds, investment trusts, ETF.

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Dr. Meldrew via mobile

May 16, 2017 at 23:13

@Williamwonders: how big a pot to enable negotiation of HL fees, please?

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citymoke

May 17, 2017 at 03:47

I'm in the process of moving all my ISA funds (but not my SIPP Income Drawdown Pension Funds for the moment) from HL to iWeb. I'm moving six unit trusts and one investment trust and have calculated that I'll be saving about £650 per annum in total. There are HL exit fees amounting to £205 in total - equivalent to about 3 months charges by HL.

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citymoke

May 17, 2017 at 03:50

Oh yes, and the move will take up to 8 weeks apparently!

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Elisabetta via mobile

May 17, 2017 at 07:10

I am baffled by those who say that buying shares with HL is better than funds to be honest. I guess if you have a big pot it's better, if you have a small one, £11.95 per share is expensive.

I would have thought iWeb or Interactive Investor would be better, and actually they getter better for bigger pots due to flat fees... So no I don't understand why HL would be ok with shares.

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mc2

May 17, 2017 at 09:57

8 WEEKS FOR A MOVE?

there is something wrong bout 8 weeks for a move from one platform to another. surely it is unacceptable in the digital age. all investors should raise the alarm and call for a change of platform in no more than a week.

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citymoke

May 17, 2017 at 10:10

mc2 - yes I thought it's an exceptionally long time, but it took that long to transfer my company pension to HL after I retired just over 2 years ago now. Apparently they are saying that the transfer time for stocks/shares and investment trusts take up to 3 weeks, but unit trusts take a lot longer (8 weeks). The only thing that I can think is the reason for the length of time that it takes for the transfers is the paperwork involved and the postal exchange of any correspondence. But your right, in this digital age, the whole thing should take 8 seconds and not 8 weeks. It smacks a bit like house purchases and solicitors where they hold on to clients money for as long as they can get away with it!

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Bulldog Drummond

May 17, 2017 at 12:20

HL does offer a good service but that comes at a steep price. 0.45% a year is a lot to pay, and that goes up to 1% to 1.5% if you invest in the active funds they recommend. By contrast a Vanguard ISA portfolio will cost about 0.25% to 0.35%, including fund charges, which is a massive cost saving, and it will beat the actives over time. HL margins are ridiculously high and good for Vanguard for challenging them.

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RippedOff

May 17, 2017 at 19:30

HL need a good kicking. I have a number of Vanguard trackers & ETFs and am pleased with these.

richard tomkin & citymoke: I think the FCA is currently looking at platforms. Have you considered informing them of your views/experiences?

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citymoke

May 17, 2017 at 21:37

RippedOff - I think HL would have got the message from me as I've voted with my feet so to speak and obviously they know where the money is being transferred to. I also have a Vanguard fund in my ISA (FTSE All-World UCITS ETF USD(GBP) and for about 18 months now any new money has gone to my ISA fund with iWeb and not to HL. The HL bonuses that I receive occasionally from them are reinvested in my existing funds that I already have with them.

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AnthonyL

May 18, 2017 at 10:30

My wife and I have had investments with iii, Fidelity and H&L though when I was able get hold of my personal pension I put it in with Fidelity, and when we bought another house the main withdrawals were from H&L.

Because I'm with Fidelity and over £250k both my platform fees and my wife's are at 0.2%. For this I have my ISAs, the arranging of my SIPP and then my drawdown, my wife has a monthly withdrawal plan, phoning Fidelity is free. There's a bit of inertia there and I'd likely save a few ££ if everything was with iii but it isn't that easy to calculate. The bottom line though is that I disagree with the earlier comment that Fidelity come out high on charges. It depends where you sit with your investment valuations and what services you require.

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Martina

May 20, 2017 at 09:26

Switching out from Fidelity and the fee of 0.35% platform fee on my modest bag of ISA funds totalling £95,000 is something I've been meaning to do for some time. Reading this thread and other investment articles on pricing structure has reignited my resolve to doing so. Fidelity offer me no advice other than the similar marketing of funds in a way that HL do, many thanks Bulldog Drummond for posting your comment above being the catalyst for my impending actions. Just hope that it doesn't take eight weeks to fully complete :-(

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Saurabh Chavda

May 20, 2017 at 09:53

I have opened Vanguard account, as soon as I found their direct service opened for UK investor. I phoned them twice and both the time they were very helpful. I have ISA equity invested in iWeb, since last 4 years and saving massive brokerage charges. But I am also waiting for De Giro to start ISA investment service, as they have more lower charges then iWeb. I am with De Giro since more then 1 year and very happy with their service as well.

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Woodberry

May 20, 2017 at 11:02

HL charges are reasonable if your priority is excellent customer service and IF you don't hold funds. Without funds you pay nothing for an ordinary share account, up to £45 a year for an ISA or up to £200 a year for a SIPP - plus dealing charges.

They make things worse for themselves by not including a breakdown of charges in the six-monthly investment report, which would highlight the difference between the costs of holding funds and holding everyhting else.

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RippedOff

May 20, 2017 at 12:35

For anyone other than someone holding a small value portfolio, HL charges are higher than most platforms. These portfolios hopefully grow and are effectively 'stuck' with HL - a transparent ploy.

If contributors read comments by others they will see the actual standard of service provided by HL. This was so poor that I went through the pain threshold for my self and spouse!

Beware of HL reps posing as 'Joe Public'

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citymoke

May 20, 2017 at 13:14

Law Man - I don't know where these HL maximum charges of £200 come from, but the reality is that I am paying about £850 per year for my ISA holdings (6 unit trusts and 1 investment trust) and about £550 per year for my SIPP funds (4 unit trusts). So HL have been charging me in the region of £1400 per annum for the privelidge of HL holding my funds and distributing the dividends to my bank account on the same day each month.

I do get back some money from those charges in the form of loyalty bonuses, but they amount to a very small percentage of the total charges.

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citymoke

May 20, 2017 at 13:29

Slight correction - I should have mentioned it's dividend payments from my ISAs and fixed monthly pension payments from my SIPP (created by the funds natural dividend yields).

The loyalty bonuses amount to about £100 per year, so that reduces the overall charges from £1400 to about £1300 per annum.

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Law Man

May 20, 2017 at 14:34

Citymoke: Please read mine again. The £200/ £45 maximum applies to non OEIC funds.

I hold a few OEIC funds where there is no IT equivalent; but overall my HL platform fee is under 0.1% p.a.

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citymoke

May 20, 2017 at 14:44

Law Man - oh yes, sorry I missed that. Fair enough. But from my experience with shares and investment trusts bought via iWeb, all I pay is the stamp duty on purchases only and a fiver per stock. Also, they don't appear to have an annual charge for funds held in ISAs whereas HL do.

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Law Man

May 20, 2017 at 15:00

Citymoke: well, if you can buy what you want, in an ISA (not a SIPP I assume) with no annual 'platform' charge, then clearly you are better off. Well done.

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citymoke

May 20, 2017 at 15:06

Law Man - yes, iWeb do have an annual charge for holding a SIPP with them, although last time I checked it was about half the cost that HL charge. I can't remember the exact figures now, but as I said, last time I checked a month or so ago, iWeb were definitely cheaper.

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mc2

May 20, 2017 at 16:23

LAW MAN ISA: "Vanguard charges 0.15% with a maximum of £375; HL charges 0.45% with a maximum of £45..."

I do not think there is a £45 maximum cap on unit trusts. It seems to be 0,45% on each unit trust, which seems a lot.

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citymoke

May 20, 2017 at 16:35

mc2 - yes, HL are charging me 0.45% per year for each unit trust in my ISAs and also 0.45% per year for each unit trust in my SIPP. That lot comes to about £1400 per year which is why I'm moving away from HL in the next 8 weeks or so. Also, I've been replacing one or two unit trusts with investment trusts and trackers and ETFs. I haven't invested in any new unit trust for about 18 months now and probably won't do from now on.

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Law Man

May 20, 2017 at 17:05

Mc2: please see my original post and discussion with Citymoke.

As I said, the £200/ £45 maxima apply to assets other than OEIC funds (the modern form of unit trusts). If you use OEIC funds in an ISA, Citymoke provides the solution: use iWeb and pay a one off fee of £25.

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mc2

May 20, 2017 at 17:53

thanks, LAW MAN. You were right all along

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HR Man

May 20, 2017 at 18:53

I am in the process of transferring my ISA from Best Invest to Fidelity mainly because Fidelity only charge 0.2% dealing charge for ITs & ETFS with no minimum payment which is attractive, and Best Invest do not provide any ETF/IT reinvestment service at all.

It has so far taken 4 -5 weeks and my transfer is still not complete - part of the delay is where the funds that you are transferring are in a different share clas to that which Fidelity offer, and Best Invest requiring confirmation how their exit fees are to be paid.

I agree on the outrageous exit charges - Best Invest are charging £110 for just two funds that I hold based on £25 per line plus a £60 ISA closure charge. To be honest I could have avoided that charge by just selling the funds but then I would lose the ISA protection- it really is hobson's choice!

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citymoke

May 20, 2017 at 21:06

Not a good idea to cash in ISAs unless absolutely necessary.

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mc2

May 20, 2017 at 22:08

HR, you would have not have lost your isa status if your sold your funds and transferred the whole amount as cash. from what I hAVE BEEN TOLD you only lose Isa status if you cash it into your bank account, but you do keep your isa status if your cash is simply transferred out from Best invest to the other provider.

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Bulldog Drummond

May 20, 2017 at 22:38

I'm in the process of moving my ISAs from HL to Vanguard, and will shift my SIPP in due course. Not only are HL charges a rip-off but they don't even offer something as basic as a flexible ISA, unlike Vanguard. I have also noticed that the HL exit charges are another rip-off.

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Fund of Funds

May 21, 2017 at 10:46

I have been tempted to change from HL over the 20 years I have been with them but still feel I get a very good overall service and good back up if you need that extra expertise. At least you can make a phone call which is answered promptly and you can get help and advice instantly from someone who knows what they are talking about. Service by phone, email or letter is always prompt. If you don't like the fees you are paying then negotiate with them if you have large investments. Especially if you have several accounts, pension fund and other family members with them. For the retired person I fell HL supply me with everything I need at a reasonable cost for al my non cash investments

I am disappointed that that have not provided a Flexible ISA and also an Innovative Finance(IF) ISA. I will be using my ISA allowance this year for an IF ISA and regret that I will have to go elsewhere for that. I cannot understand why they are not providing these new ISA's.

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RippedOff

May 21, 2017 at 11:21

Fund of Funds. Your experience is exactly opposite to mine. And,HL tried to justify the appalling service from the top.

HR. Yuo could have maintained ISA status without selling most funds by instructing an "in-sittu transfer"

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HR Man

May 21, 2017 at 11:28

mc2

I gather this might be possible but am not sure if it is allowed in practice however were I to cash in my Best Invest funds with the aim of transferring the cash, they would charge me the ISA closure fee of £60.

It would be cheaper than transferring the funds but I am not aware of people doing this routinely so I wonder if it is allowed or just not being promoted?

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citymoke

May 21, 2017 at 11:32

If this thread is still around in 7 weeks time, then I'll keep you informed of how the transfer is going and let you know of any complications (hopefully not).

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HR Man

May 21, 2017 at 11:35

I am also with HL but am spreading the risk by moving to Fidelity, however I am with Fund of Funds in that HL gave a first class service although you do pay for it. But I can get through to HL almost instantly and had my queries answered accurately straight away.

When I was with Charles Stanley and also Best Invest, calls to get to someone take longer and their knowledge appears quite weak and on most occasions, they have had to refer to someone else to establish the answer-which was not great.

Also- no one, but no one, can match HL's website -its FAQs and guides are superb -in comparison, I defy anyone to go onto Vanguard's website and find out whether they provide any reinvestment of income service at all- no matter how far you look and how often you search for the information it is not there!

HL are expensive -no question - but you pay for what you get!

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Fund of Funds

May 21, 2017 at 11:37

As well as being charged a reasonable ongoing charge compared to the other major platforms my main saving with HL is being able to change funds with no charges as many times as I want. I have a large number of OEICS and review and change if necessary on a quarterly basis. No ongoing charges for Shares or Trusts in Vantage Fund & Share account. Good discounts recently off VCT's. Extra discounts on many popular funds for the actual charges from the fund provider due to the amount of business they handle. Loyalty bonus. Just some of the reasons I stay with HL.

And I said, I have always had good prompt service in all the years I have been with them. Also good reporting documents.

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citymoke

May 21, 2017 at 11:50

My situation now is that I'm close (if not there) to a 'fit and forget' portfolio both for my ISAs and SIPP income drawdown investments. So I don't need to pay annual charges anymore on my portfolio. So transferring all my ISAs to iWeb will save me a lot in annual fees and I am still able to access the HL website and the use of all their facilities including the very useful virtual portfolio watchlists. I'll see how the ISA transfer goes and if happy with everything, then in a few months time I may consider moving the pension funds as well. But I haven't made that decision yet. Holding at least one account with HL means that one can still utilise their website services, eg. watchlists/stock information/prompt telephone services etc.

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mc2

May 21, 2017 at 13:09

FUND OF FUNDS I made lots of OEICS and unit trusts comparison between HL and Fidelity ongoing charges. almost always fidelity was cheaper (and this included HL occasional bonuses)... HL has this oldest trick in the books, they charge expensively for a fund and then they deduct a little bonus for you, making it look like they very generously give you a discount, this including platform charges.

for example, they apply an ongoing charge of 1% on a fund, and they give you a bonus of 0,10% so you pay a total 0,90%... then, still an example, checking the same total ongoing charge for the same fund with Fidelity you find out is 0,80%... Well, what you make of that?... that's the reason I am moving out of HL...

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mc2

May 21, 2017 at 13:15

Tesco used to do that that trick a few years ago, maybe they still do it?... they would up the price on their own branded products, let's say baked beans. their baked beans were let's say 10p a tin, so a week after they would put them up to 15p each... they a week after they would put them back to 10p a tin with price tagged as a great discount... it became comical after a while and made me laugh a lot

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mc2

May 21, 2017 at 13:21

I say Tesco only because that was the store I was going to at the time... nothing personal with Tesco, maybe other companies were doing the same

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Fund of Funds

May 22, 2017 at 00:59

mc2 - U need to negotiate a better rate with HL and don't pay their standard rates if you have a reasonable investment with them. Standard rate comparisons mean nothing. Fidelity is certainly not a cheap platform.

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Nigel via mobile

May 22, 2017 at 08:20

For HR Man and others considering moving to Fidelity, think again - their customer service is very poor and their website awful. I sold a percentage of one find into cash and this resulted in 41 transactions - selling and then re-buying unrelated funds which cost me over £500. I also use HL and any can vouch that they are in a different class re service and website functionality.

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RippedOff

May 22, 2017 at 17:13

It's a pity that those who have 'professional' relationships in the investment industry are not identified in this forum

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HR Man

May 22, 2017 at 17:46

Nigel via mobile

Certain parts of the transfer to Fidelity have not gone well so far but on examination that was down to Best invest who apparently cannot transfer funds electronically and have to do it manually.

I am dipping my toe with Fidelity as only around 10% of my funds are going to them and I will see how my experience with them goes!

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richard tomkin

May 22, 2017 at 19:39

I am with Alliance Trust Savings.Their costs are not unreasonable,on a flat fee basis working out at about 0.015 %per annum.However,the communication is not good,,not least because I find the Scots dialect a bit of a challenge.Also,the service they purport to offer,in the form of forwarding annual reports of investee companies,is sporadic to say the least.Even in the case of Alliance Trust PLC itself,they only send a noddy version.I know you pay a price for being a nominee only,and there is plenty of info online,but they should not offer this service if they cannot perform.Another bone of contention is that they never come clean as to how they treat interest on uninvested cash : when I tackled a previous chair-lady on this point,she said that ATS allows no interest to the client but more or less helps itself to any interest,although she ventured that the sums involved are less when interest rates are low than when they are higher!

Any advice,anyone?

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mc2

May 23, 2017 at 09:30

HL is the best but you pay for it.... Fidelity cannot match that at this date... but do you really need the best if all you do is hold oeics and unit trusts where all you do is the odd buying and selling?

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citymoke

May 23, 2017 at 10:27

mc2 - exactly.

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mc2

May 23, 2017 at 11:32

CUT OFF POINT

When selling or switching Hargreaves just told me to have the SAME DAY valuation their CUT OFF point is 8.30 AAM... Fidelity told me their cut off point is 11 am...how do you feel about this? Because 11 am allows you to see where the market is going that day but 8.30 would be far to uncertain so would be better to be with FIDELITY. What about other platforms? Are you all aware of the day valuation cut off points of your platforms?

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citymoke

May 24, 2017 at 09:29

mc2 - I have assumed that during the transfer of funds from one platform to another that one's investments stay in the market so to speak. In other words the investments are not sold and re-purchased, so the investments are 'live' during the transfer procedure, so if the markets rise during the transfer of funds, then the transferring funds also rise and vica versa.

Or is this not the case?

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mc2

May 24, 2017 at 11:28

CUT OFF POINT

CITYSMOKE--- you're right on transfer of funds... However I might not have been clear... I was not referring to the transfer but to what different platforms offer as CUT OFF point. As you all know Unlike investment trusts in which you know exactly at what price you are buying/selling/switching - the valuation of oeics and unit trusts is not given at the moment you deal... So in the latter case, it makes a huge difference to have a cut off point as close as possible to the valuation point. This cut off point is at 11 am for Fidelity and 8:30 am for HL... so I think is a big PLUS for Fidelity and for choosing Fidelity above HL

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Jet Set Willy

Jun 11, 2017 at 15:17

Have given up on HL and have moved to iWeb, saving me £400 per annum.

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citymoke

Jun 11, 2017 at 16:32

Jet Set Willy - me too, although 4 of the 7 investments are not transferable for various reasons. For the non transferable ones, I would have to cash them in and re-buy other funds with iWeb which I don't really want to do. But on the 3 funds that ARE being transferred, I'll be saving in the region of £350 per year for those 3. HL will be charging me £105 exit fees though for the 3 funds!

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Jet Set Willy

Jun 11, 2017 at 17:16

citymoke - good on ya. I cashed what I had and transferred the cash balances - took it as an opportunity to rebalance.

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