Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a732312

Hargreaves pulls u-turn on investment trust charges

by David Campbell on Feb 05, 2014 at 07:44

Hargreaves pulls u-turn on investment trust charges

Hargreaves Lansdown has performed a u-turn on its plans to increase charges for customers who hold investment trusts on its platform.

'We have listened to our clients,' the company said in a statement. 'Clients will pay no more to hold investment trusts in future than they do today and in fact many will pay less and be better off.'

Following a wholesale review of its platform charges Hargreaves Lansdown last month said investors who held trusts on its platform would pay an additional charge of 0.45%.

That led to an outcry, with some Hargreaves clients who contacted Citywire saying that their charges had effectively doubled.

Association of Investment Companies (AIC) director general Ian Sayers applauded the decision.'It’s great news to see that Hargreaves Lansdown have listened to feedback, and we congratulate them,' he said in a statement.  

'Whilst investment trusts are held in much the same way as funds, they are shares which are traded just like any other. We are very pleased that investors can now continue to hold both investment trusts and other shares in a cost effective way.'

The decision followed the company's interim report, in which it said it had witnessed a 'staggering' inflow of £13 billion of new client assets over the year to January but profit and revenue growth within the business lagged that rise substantially. Assets under administration rose 43% to reach £43 billion over the full year, the company said in an interim statement, while profit growth within the business stood at 11%, reaching £104.1 million.

Although still substantial, profit margins fell 0.4%, from 65.6% in the same period of 2012 to 65.2%. The company attributed that to continued interest rate depression hitting deposit rates.

'We are pleased that Hargreaves Lansdown's results once again show substantial growth in new clients, assets, revenue and profit,' said company chief executive Ian Gorham (pictured).

'We also welcomed 77,000 new clients during the period, easily the most for any 6 months in our history, and more than the first 6 months of 2011, 2012 and 2013 combined.'


3 comments so far. Why not have your say?

Peter Barrett

Feb 05, 2014 at 09:32

Hargreaves Lansdown are a superb company.

report this

ScepticEclectic

Feb 05, 2014 at 12:28

The emperor has no clothes - not trading on 40x earnings with a sunset clause on legacy trail ready to devastate the company in 2016.

It's beginning to sound like a delusional story as oposed to a solid listed company that can throw off cash for many years.

Frankly, "...and for that reason, I'm out..."

report this

Peter Barrett

Feb 05, 2014 at 14:59

I didn't say they were a good investment but as a SIPP and ISA holder for many, many years I have not had any cause to complain.

Their staff are professional and all seem very knowledgeable.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home


As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment


With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the shares

  • Hargreaves Lansdown PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet