Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Hargreaves Lansdown in secret commissions controversy?
+ Reply to discussion
Options
Bennedict Bombdier
Posted: 12 June 2011 14:35:30(UTC)
#1

Joined: 06/06/2011(UTC)
Posts: 2
Hi all! Just read the paper today and read an interesting article that will be concerning news to fund investors.



According to Richard Dyson, Hargreaves Lansdown has refused to reveal commissions it receives for its funds sold and those in the ‘wealth 150 list.


The refusal has produced controversy as Dyson wonders whether there are secret back door payments going on between HL and fund managers.


I’ve always thought of the list as marketing drivel but its very concerning to hear with all that goes in the financial industry.
Information is on

http://www.investoo.co.u...commission-controversy/

http://www.dailymail.co....t-wrong-fees-secret.html
Back to top Quote
Chris Marsden
Posted: 12 June 2011 22:40:30(UTC)
#2

Joined: 17/04/2010(UTC)
Posts: 138

Thanks: 2 times
Was thanked: 3 time(s) in 2 post(s)
I have not been impressed by some of their Fund of the Week' choices, and the Wealth 150 do not seem to have done any better than the others I have selected, by past consistency/performance.

So transparency is one factor, and statistics of how their W150 have done compared to the average would be good.

ie This weeks Sarasin Agristar lost 1% last 6 months
last weeks rec Blackrock G & Gen lost 10%. Gold has gone UP from 1380 to 1531 in that time !!!!

I have 14 Funds in the Wealth 150 that have shown a gain of up to 12.9%, and 12 that have shown a loss of up to 9.5% in the last 7 months.
Back to top Quote
chazza
Posted: 13 June 2011 09:45:43(UTC)
#3

Joined: 13/08/2010(UTC)
Posts: 88

Thanks: 5 times
Was thanked: 12 time(s) in 6 post(s)
I learned the hard way that Hargreaves Lansdown's recommendations have more to do with marketing than the interests of the client when I bought their package of recommended funds one ISA season, only to see that they had fallen by over 60% by next valuation, and continued to fall thereafter. From that I learned that I must do my own research, ignore most of the bumpf churned out by HL, and trust my own judgement. The Wealth 150 is a very curious list, and most of my best performers have not been on it – unlike most of my worst performers! Actually, I should have been warned off years earlier when Peter Hargreaves himself warned me off buying Fidelity Special Situations just as Anthony Bolton began his stellar run.. (He recommended Prolific Special Situations instead).
There are other issues with HL. Their charges for buying / selling / keeping ITs and other shares in an ISA are high (Barclays is much cheaper), and buying funds I have often found that the buying price is higher than that listed, so it seems that initial charges are not always fully rebated even where that is promised.
Back to top Quote
Anonymous Post
Posted: 13 June 2011 09:58:29(UTC)
#4
Anonymous 1 needed this 'Off the Record'

Thanks for bringing up that article, quite interesting. I hope they'll keep the pressure on H+L, eventually they'll have to give in and reveal their comissions (and to be clear, I don't see why they shouldn't - it's part of their business model, and they can be straight-forward about it, even if it involves additional commissions for promoting new funds, for example).
Back to top Quote
TJLamb
Posted: 13 June 2011 12:15:19(UTC)
#5

Joined: 05/04/2011(UTC)
Posts: 26

Thanks: 1 times
Was thanked: 5 time(s) in 3 post(s)
Although this issue has been hinted at previously, it now seems to be a 'cats out of the bag' situation.
The sooner HL come clean about it, the more respect and trust I will have for/in them.
For a while, I have been taking some of what they say with a pinch of salt.
If they respond positively to attempts by other platforms to steal market share, and lower their charges to remain competitive, I'll be even happier!
Back to top Quote
Joe Soap
Posted: 13 June 2011 17:50:38(UTC)
#6

Joined: 24/01/2010(UTC)
Posts: 235

Thanks: 1 times
Was thanked: 7 time(s) in 6 post(s)
Yes, I find the wealth 150 not much use myself, HL have pushed some real dogs, I've mentioned them elsewhere here abouts. I do like HL, but transparency regarding fund launches and their ongoing promotion is something that really does need looking at.
Back to top Quote
Spartacus
Posted: 13 June 2011 20:27:03(UTC)
#7

Joined: 13/06/2011(UTC)
Posts: 26

Thanks: 1 times
Was thanked: 3 time(s) in 2 post(s)
I'm a long standing customer of HL. They're service is top notch but...

(1) I get fed up with their "preaching to the converted" mail shots.

(2) Listening to them, only UT's exist - there seems to be no mention of Investment Trusts or single company shares.
Back to top Quote
Dennis .
Posted: 17 June 2011 18:47:19(UTC)
#8

Joined: 26/12/2007(UTC)
Posts: 182

Thanks: 1 times
Was thanked: 17 time(s) in 10 post(s)
I agree that HL provide a good platform, easy to use etc but I too and a bit suspicious of how they soft sell funds and they even put some newly launched funds straight into the wealth 150 list on the basis of the fund manager's track record (past performance is no guarantee etc....). I remember a few months back when they told everyone that Eclectica Agriculture was coming off the 150 and being replaced by Sarasin Agrisar. The performance since has been about the same.

I suppose at the end of the day they have a vested interest in your portfolio growing since they largely live off trail commision, I just wish I knew exactly what their kick back is at times.
Back to top Quote
TJL
Posted: 17 June 2011 20:20:41(UTC)
#9

Joined: 14/03/2011(UTC)
Posts: 105

Thanks: 35 times
Was thanked: 24 time(s) in 16 post(s)
But, be fair everyone, don't you get a lovely pen set if you recommend a friend, or have I just imagined that?.
Signing off now, had a couple of beers and you should never post after consuming alcohol - you sometimes regret it in the morning!
Regards
Back to top Quote
+ Reply to discussion

Markets

Other markets