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Hargreaves Lansdown
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David J Robertson
Posted: 29 November 2012 19:26:04(UTC)
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Ok I know that Hargreaves Lansdown have been mentioned a few times on this forum, but question today is about H-L themselves.

Today Stephen Lansdown 'resigned' and a few directors have left recently

Any thoughts???
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TJL
Posted: 30 November 2012 08:32:23(UTC)
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I know what you mean, but perhaps after a long career, millions in the bank, RDR coming, he's just decided now is a good time to go?
In relation to the others, I wonder if being a senior figure at HL (who, love them or loath them, are very successful), puts you in a good position to be head hunted on favourable terms?
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2 users thanked TJL for this post.
David J Robertson on 30/11/2012(UTC), Mark C Digby on 02/12/2012(UTC)
P L
Posted: 30 November 2012 09:13:33(UTC)
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I suspect the game is up when he starts dumping his shares. Doesn't he currently hold a significant %.
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David J Robertson
Posted: 30 November 2012 13:08:59(UTC)
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Hi PL,

At the moment he does hold a vast number of shares but could be tempted to lose a few, you can never second guess............

Cheers
David
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David J Robertson
Posted: 30 November 2012 13:12:25(UTC)
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TJL;17007 wrote:
I know what you mean, but perhaps after a long career, millions in the bank, RDR coming, he's just decided now is a good time to go?
In relation to the others, I wonder if being a senior figure at HL (who, love them or loath them, are very successful), puts you in a good position to be head hunted on favourable terms?



Forget the millions in the bank but after a long career I'm tempted to go now -- retirment getting look a great option, no millions of pounds on my bank account.
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Dennis .
Posted: 02 December 2012 14:00:29(UTC)
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I have two views on HL,
First point is that they are very well positioned to pick up lots of business from people who have never had a pension before.
The second point is that RDR will no doubt make a difference but I can't believe that they will stand still and do nothing. As a user of their Vantage service I am expecting an announcement any day now on how they plan to implement RDR and the impact on me.

Incidentally I read today in the FT that trail commission only stops on new investments after Jan 1st. So what happens if I sell a holding and then repurchase it?
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Damazia Ajayi on 02/12/2012(UTC), Guest on 02/12/2012(UTC)
Fund of Funds
Posted: 02 December 2012 18:53:13(UTC)
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It will be very interesting to see what happens at HL next year. With RDR I think they could be in for a shake-up. I think there business model is a bit stale. I will certainly not be buying HL shares next year. They have made a miserable attempt to return part of their annual fund renewal fees to clients with SIPPs but this is not enough. Saying that they are returning up to 0.5% on over 1000 funds when probably less than 10 come into the 0.5% category and I suspect the average on a typical portfolio is more like 0.15 to 0.2%. There are new players in the market and more coming onstream next year who will refund all the renewal fees to clients up to 0.75%. You work out how much difference this will make to your pension fund over 1 year never mind 10 years with growth. Although I do like the HL setup , their website, information, trading platform and customer support, I will with regret have to leave them next year, I cannot ignore the big saving. Alliance Trust for example will now refund all renewal fees to clients and just charge a fee on trades which I would much prefer. HL have been forced to take the action they have in relation to annual renewal fees but they should have done it earlier and it is not generous enough to clients. I think they will lose a lot of business next year and their new business will fall. HL you need to do something quickly to retain your position in the market. They are an excellent company but others are coming to steal your business. Why should you take renewal fees on our funds. Just charge specifically for the services you provide but and let all these fees go into our pension funds.
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TJL
Posted: 02 December 2012 19:31:43(UTC)
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Fund of Funds,
I agree.
HL provide a 5 star service, convenient, but not necessarily competitive.
The more you get into investing, the more you question what you quietly, almost invisibly pay them.
I believe the typical cost of investing in a fund via HL is about 1.25%, but I have no idea how much I pay them each year, other than knowing it is significant (circa £2250 - £2500 I think).
The information on their website is pretty useless, but the online trading option is excellent.
In my humble opinion (apologies to anyone who has 'heard' me say this before), if they undercut the competition and took the lead on true fee transparency they would rake it in by virtue of increased customer base - I think they could completely dominate the market if they did this.
But, what do I know? I am only a DIY investor, and in any case the current business model seems to have paid off pretty well.
TJL
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AndyAndy
Posted: 02 December 2012 23:34:34(UTC)
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I'm currently with Alliance Trust and largely happy. But I'm looking for a 2nd SIPP provider for 2 reasons :
- To spread my risk
- Alliance Trust are not keen on adding some non-mainstream fixed interest securities to their security list

I want a provider with :
- wide range of investment options
- good financial security
- good internet access & admin
- low costs

My focus will be on :
- UK Equities, esp Investment trusts
- Fixed Interest

Not interested in Funds / Overseas Equities / Advice / Extras

Would be transferring £300k.

Thoughts welcome!
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eilidh
Posted: 03 December 2012 11:47:20(UTC)
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Hello Andy Andy

I have just transferred my Select Sipp invested in ITs from Alliance to BestInvest. Alliance fees were creeping up after 10 years and costs at BestInvest are less. Also you can speak to the same well-informed person at BestInvest, unlike Alliance who have made a few mistakes in my account over the years. Also have ISA with BestInvest- totals £330k
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Elaine Bain
Posted: 03 December 2012 18:41:16(UTC)
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Joined: 03/12/2012(UTC)
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David J Robertson;17002 wrote:
Ok I know that Hargreaves Lansdown have been mentioned a few times on this forum, but question today is about H-L themselves.

Today Stephen Lansdown 'resigned' and a few directors have left recently

Any thoughts???
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dd
Posted: 03 December 2012 18:41:45(UTC)
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I don't have a SIPP with Bestinvest but I do have ISAs with them. If I were you, I would enquire about a transfer to them, to find out the facts straight away. It may be cheaper to transfer sooner rather than later. I don't know for certain but I would recommend that you find out. I intend to enquire for myself ASAP.
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Elaine Bain
Posted: 03 December 2012 18:46:10(UTC)
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Joined: 03/12/2012(UTC)
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RE: HL - Agree that for a few of the longterm directors, it may well be a good time for them to go - especially for financial reasons. HL are solid, I believe. Their track record is good & they are consistently strong.
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Fund of Funds
Posted: 04 December 2012 00:16:58(UTC)
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It does seem suspicious that the resignation comes just at the time when HL is facing such a major threat to it's business model which has been responsible for it's success. I do not see the share price going North next year. I was not aware of the other director activity mentioned above. Have the directors and Lansdown cashed in shares, maybe that's the thing to watch .
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