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Hargreaves Lansdown unveils ‘third way’ non-advised service

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Hargreaves Lansdown has unveiled the details for its newly launched non-advised service Portfolio +.

The “third way” proposition provides investors with ready-made portfolios managed and rebalanced every six months by the HL investment research team.

There are six portfolios to choose from, ranging from Adventurous Income to Conservative Growth.

When choosing a portfolio investors can select their investment goal, level of risk and whether they want their investments held in an Isa, Sipp, fund account or Junior Isa.

An investment in the Portfolio + service can be held alongside any other funds and shares on Vantage, Hargreaves’ D2C platform, and can be viewed online in the same account.

The minimum investment for the service is £1,000 and investors are also allowed to switch or transfer existing Isas, pensions and investments into Portfolio +.

There are no account set up charges, and no initial charges for the funds as well as no additional ongoing charges for the service.

Investors will only pay the ongoing charges of the underlying funds, ranging from 1.34 per cent to 1.46 per cent, and the Vantage annual charge of up to 0.45 per cent per annum.

Hargreaves Lansdown head of communication Danny Cox says: “Portfolio + offers a third way of investing for the growing throng of investors who want their investments managed for them, but don’t want to pay for financial advice. It will provide investors with a fully managed portfolio by taking three simple steps online.

“This service can meet the needs of first-time investors, who are yet to build up the knowledge and confidence to choose their own funds, right through to retired investors who simply want to leave investment decisions to someone else.”

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Comments

There are 8 comments at the moment, we would love to hear your opinion too.

  1. Not really “third way”…or maybe the spelling is a little off

  2. Charges seems relatively high. Clearly not a Stakeholder product.

  3. Will certainly suit the unsure investor and the market that is being overlooked by RDR. It’s the future!

  4. Particularly like the non-advisory bit, although I am not sure what the pundits in years to come will say….Maybe they will want higher charges and more liability for advice perhaps? After all, financial sectors tend to be cyclical

  5. “Only” up to 1.9% per annum with no advice?

    Oh well, as I’ve said often enough on these boards, overcharging is not a crime.

  6. I have a Friends Life pension (ex employee many moons ago) and wanted to transfer it to a Hargreaves Lansdown SIPP. HL insisted I produce a letter showing I had been given financial advice in order to accept my funds. Asking how much it would cost for them to produce such evidence I was quoted £950!!! What??? Don’t they want my money? Talk about making life difficult!

  7. ‘There are no account set up charges, and no initial charges for the funds as well as no additional ongoing charges for the service.’

    Just a circa 1.7 to 1.9 per annum. Clever wording. Who needs to pay for advice with such a good deal.

  8. Average clean AMC is around 0.90% for a portfolio of funds, which together with an adviser charge of 1% AMC give a total of 1.90% per annum. I’ve ignored the fact that it also possible to access cheaper platforms as well.

    So how does HL proposition benefit the average punter?

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