Hargreaves Lansdown launches cheapest UK tracker

Dont trust Hargreaves. I would not touch them (again) with a bargepole. You can get a better deal, and respect for clients, from others.

I have always found Hargreaves efficient, courteous, accurate ,understandable and user friendly These attributes are worth the marginal extra cost where there is a cost

And it's about time firms that do things with large amounts of money that can be automated on a computer charged a reasonable fee.

A professional, efficient and in terms of value for services rendered, a competitive company. I have dealt with them for over ten years without complaint. I have little doubt that a modest investment in their stock will more than pay for any platform fees, which in any event will become the industry norm thanks to the unnecessary interference by that ineffectual quango, the FSA.

Dear Mr Lumsden,

For the new SWIP tracker, HL will be charging investors 0,11% and not 0.07% as you say in your heading. In case you do not know, investors pay the TER not the AMC, unless of course you know and you are trying to mislead, as is the custom of the fund trade.

It will also interest you to know that the next cheapest tracker is the HSBC All share charging 0.28% and not the Fidelity one.

HL's platform charge of £2 pm amounts to 0.48% pa for a £5000 investment, which is nearly 41/2 times more than Vangard charge for their tracker. The total cost becomes 0.59% which is higher than many other trackers on the market. HL have not become the biggest IFA on the market by under charging.

As for their service, I called them once for an elementary piece of information about themselves and they did not know or seemed to care. The secret of there success is massive advertising directed at simple, credulous people like Mr Ian Hazel above and makes press writers bend backwards to please them, even to the extend of understating their charges, if you know what I mean.

I would add that I did look at several alternatives to HL. before transferring all my investments from Bates to them some 8 years ago. They are the fourth IFA I have used and they are far and away the most up-front of the companies I have experienced. As M.D. of an electrical engineering contractor I do not have time to do my own research, and I do not have time to listen to slick salesmen or read their blurb, so I value HL's precise and efficient service. I can rely on them to do what I ask when I request it and although I do probably fewer than 100 trades a year I have never experienced anything other than exemplary service.

Likewise, I used to use low-cost brokers/platforms before trying out Hargreaves a year or so ago. Their service is so good that I have gradually transferred more of my business to them.

I have used HL since 1987 and have always found their service courteous and exemplary. I am currently transferring other investments into my Vantage account.

I started using Hargreaves Lansdowne before 1999 & have always had very efficient service from them.

No problems with HL as far as I am concerned. Always helpful (as far as execution only allows) courteous and efficient. They should not be judged by irrational outbursts.

The pros and cons of HL vs other providers has been debated.

Given that on the balance of things I will stick with them for now, what about the Scottish Widows FTSE All-Share tracker that they are going to offer?

In terms of costs it seems to stack up quite well. Is it worrying that it's run by Lloyds?

Franco suggests that Gavin Lumsden is mis-representing Hargreaves Lansdown charges, AMC & TER. Having re-read the article I find the report is accurate and unambiguous.

I, and my lamily, have used H-L's services for more than 20 years with almost total satisfaction. There seems to me to be too many jaundiced people out there!

Thanks David, I was just going to reply to Franco but don't need to!

Only thing I'd add in response to several of you who describe Hargreaves Lansdown as an IFA (independent financial adviser): it's true they have a small IFA arm but the bulk of the business is execution-only broking, ie, no advice whatsoever, just information and a facility to buy investments on your own. Sorry if that's stating the obvious, but I think it's an important point.

I phoned HL a couple of weeks ago with a view to accessing some advice. Like many IFAs they will only advise clients to buy funds or OEICS. I like mutual funds but much prefer investment trusts. My interest went no further. I may still transfer my SIPP and ISA to HL as the service from Alliance Trust Savings deteriorates.

Well Done HL

They made a mistake several weeks ago but they have put it right. The new section on their web site devoted to trackers is fantastic. This has reastored my faith in HL. They may not be the cheapest but with the exception of the recent cock up I have always found them to be great.

ripped off...... in what way, all the costs etc are on the screen?

Richorse,Ian and others... yes well done HL

I am buying into that tracker in the morning, and looking at the other Vanguard ones.

I have found HL are first class with excellent online and iphone service and immediate response to any query. The staff are courteous and helpful.

Yes, its important to look over Citywire,Morningstar and Trustnet (belt and braces) before committing money rather tha dashing into the Wealth 150, but even there I see a slight change in the guys comments.

The fault in changing charges lies squarely with Ant and Dec running the country, and there boy wonders runing the treasury. they fixed a problem that no one was moaning about, and now the charges have to be paid out in the open.

But we were always paying some charges and always will. Its called you get what you pay for.

I am sticking with HL and recommend them to you.

banjofred

I've been with Bestinvest for over 12 years and would always recommend them, most of their funds are commission free.

I am reassured that a substantial majority on this thread are as satisfied with HL as I am. I am not renowned for being particularly easy going, but was beginning to wonder if the early venom exhibited by a minority of commentators had some justification which I was missing! I am satisfied that this is not the case.

If I noticed the charges I would probably think I shouldnt be investing.

Does anyone know if these trackers pay a dividend of any sort?

- the ftse allshare is made up of a large portion of vodafone, bat, bhp, bp, shell, glaxo, etc, all of which pay generous dividends

- one would expect something like 3%

Or do they simply do as they say and track the index without actually being invested in many of the shares?

That's a good question. According to Hargreaves' new tracker section most of the funds have a yield, suggesting they pay a dividend. However, BlackRock and Vanguard funds don't. I don't know why, might make a good article unless someone else has the answer?

OK just checked with Hargreaves. Dividends do form part of the return you get from a tracker. Whether you get a dividend or not depends if you hold income or accumulation units. The Blackrock funds on Hargreaves are all accumulation so the dividends are reinvested automatically. The firm wasn't sure why Vanguard yields were not all shown, suggested it may because all the data is not live yet.