FUNDS group Hargreaves Lansdown yesterday unveiled a tariff for customers using its investment platform – the opening salvo in an looming price battle between fund supermarkets.
The FTSE 100 group, based in Bristol, said customers will pay 0.45 per cent a year on the first £250,000 they invest and 0.25 per cent on investments of between £250,000 and £1m. Customers who have the maximum amount stored in an ISA – £11,520 – can expect to pay £51.84 a year based on the figure.
The move follows new regulations introduced last year which unbundle the costs of fund charges. The new tariff means the overall charge customers pay on funds they invest in has fallen.
Investors previously paid an overall fee of about 1.5 per cent. Management charges will fall back to 0.65 per cent on Hargreaves’ recommended funds, which come on top of the 0.45 per cent tariff charge.
Ian Gorham, Hargreaves Lansdown chief executive, said: “We have put our prices down considerably. We’re being transparent about it and we continue to try and drive down the cost of investment.”
The move comes as a flood of other fund supermarkets adjust their prices to comply with the new regulations.
Two of Hargreaves’ main rivals – Fidelity and Barclays Stockbrokers – are set unveil their arrangements over the next couple of weeks.
Fidelity’s head of personal investing Mark Till said: “We are confident that the majority of investors will find our pricing simple, easy to understand and extremely competitive.” Barclays Stockbrokers declined to comment.