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Hargreaves unveils unbundled pricing structure
by Jun Merrett on Jan 15, 2014 at 07:07
Hargreaves Lansdown has unveiled its new unbundled tiered pricing structure for its Vantage platform.
The tiered charging structure is:
- £0- £250,000: 0.45%
- £250,000 to £1 million: 0.25%
- £1 million to £2 million: 0.1%
- From £2 million above: no charge
From 1 March 2014 the average annual management charge (AMC) for a Wealth 150 fund will fall to approximately 0.65%. Hargreaves said the average AMC charges will compare favourably to the standard AMC of 0.76% for the same funds and give an average discount of 0.11% for Hargreaves clients.
Hargreaves has also selected 27 funds from its Wealth 150 list which will make up a new list called the Wealth 150+ where the average AMC will be 0.54%.
The average AMC for funds available on Vantage which are not in the Wealth 150 is 0.71%, including passives.
The company will reveal the full list of the 27 funds who have offered it super clean deals on 1 March.
The platform is required to implement the new structure from 6 April 2014.
Hargreaves has estimated the new pricing structure represents a £8 million cost based on its financial results for the year ended 30 June 2013.It also believes there could be a £9 million hit on its revenues as it approaches April 2016 when legacy rebates will be banned.
At the start of trading the firm's shares were down 2.6%, or 39p, at £14.69, lagging the FTSE which was marginally up.
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