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FrozenOut

Hargreaves Lansdown On Property

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Hargreaves Lansdown are well-respected and reputable financial advisers and asset managers. Many of us on here will agree with some of their conclusions regarding the residential property sector.....

Conclusion (abridged)

Residential property is historically very expensive. It is also very expensive against such yardsticks of value as a comparison with rental income and value compared to average wages. The sentiment seems to have changed. Many people no longer believe that property is going up in annual double digit rises. After an almost uninterrupted period of house price rises for twelve years the market could find itself due for a correction. That correction could be large.........cut......

...............................If prices slide, it may be many years before the heady prices of six months to a year ago are ever reached again.

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Hargreaves Lansdown are well-respected and reputable financial advisers and asset managers.

Would that be the same H&L who got caught up in the splits fiasco and had to pay compensation to investors? Or the same H&L whose 'stock recommendations' were once highlighted as highly accurate and profitable provided you shorted their 'buys' and bought their 'sells'? Or the same H&L who appeared to advise investors to buy (an apparently expensive [2]) annuity as an immediate-vesting pension by comparing the yield with that achievable in a savings account? [1] Or even the same H&L who send out a newsletter that sounds more like an advertisement paid for by the industry than something you would expect from a company offering impartial advice?

I can think of at least one FA less useful than H&L but thought I would point out the above to balance things a little. Has anyone else had the misfortune of dealing with St. James's place? Actually, maybe give it a go if you haven't, it will waste their time and possibly teach you much about FAs.

H&L's execution-only service for unit funds seemed good value even if I always found a better alternative. EDIT: fixed previous sentence to clarify I meant unit funds (as opposed to e.g. share dealing), and to point out this information could be out of date. With a bit of luck no-one will suspect me of trying to push H&L's products ;)

Thanks,

MoD

[1] I recall the phrase went "the only reason for not taking advantage of this opportunity is if you don't have spare capital". I am sure everyone has spotted the flaw, but if not: you get to keep the capital in a savings account.

[2] They would not have been the worst offenders but there were better value products available elsewhere at the time. Or rather, roughly the same products but with a much higher commision rebate.

Edited by MongerOfDoom

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Would that be the same H&L who got caught up in the splits fiasco and had to pay compensation to investors? Or the same H&L whose 'stock recommendations' were once highlighted as highly accurate and profitable provided you shorted their 'buys' and bought their 'sells'? Or the same H&L who appeared to advise investors to buy (an apparently expensive [2]) annuity as an immediate-vesting pension by comparing the yield with that achievable in a savings account? [1]  Or even the same H&L who send out a newsletter that sounds more like an advertisement paid for by the industry than something you would expect from a company offering impartial advice?

I can think of at least one FA less useful than H&L but thought I would point out the above to balance things a little.  Has anyone else had the misfortune of dealing with St. James's place? Actually, maybe give it a go if you haven't, it will waste their time and possibly teach you much about FAs.

H&L's execution-only service seems good value even if I always found a better  alternative.

Thanks,

MoD

[1] I recall the phrase went "the only reason for not taking advantage of this opportunity is if you don't have spare capital". I am sure everyone has spotted the flaw, but if not: you get to keep the capital in a savings account.

[2] They would not have been the worst offenders but there were better value products available elsewhere at the time. Or rather, roughly the same products but with a much higher commision rebate.

You have a point. It's a cert that H&L would have been labelled "VI" if they had offered any other opinion....

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What do H&L charge for execution only MoD?

I'm with squaregain at the mo.

D

It has been a while since I last wanted to know. Their Vantage ISA was one of the first that would rebate some renewal commision, and their initial charges were very competitive on some of the funds I wanted - but not on others. The main benefit of the H&L site for me was that I could easily find funds with special offers and then buy them elsewhere on slightly better terms. (e.g. L&G used to give cashback on their Fixed Interest fund; Norwich Union also had negative ICs on some of theirs but I cannot remember if I found that through H&L or Bestinvest. ).

If H&L read this board they might want to know I would have invested through them if it was not for the 0.5% annual charge on funds that do not pay renewal commision. This did not make sense given that they appeared happy to accept 0.25% deducted from renewal commision on other funds that did. I also did not want to be stuck with an ISA where the charges scaled quite so much with the invested amount.

Once I built up a sufficiently large portfolio I transferred all my fixed-interest ISAs to Comdirect (now Squaregain) and bought gilts. Anyone with a non-trivial amount of money to invest in fixed interest instruments may well do worse than to consider this option.

Thanks,

MoD

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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