hargreaves lansdown moves to pacify tracker fans

Hargreaves Lansdown aimed to pacify pro-tracker investors today with the launch of an exclusive SWIP fund and the addition of 12 further Vanguard products to its Vantage platform.

hargreaves lansdown moves to pacify tracker fans

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The move comes a couple of weeks after the company caused a furore by revealing plans to introduce a monthly platform fee on all tracker funds that sit on its platform.

From 31 December the controversial £1 to £2 charge will be levied on some of the most popular and low-cost tracker funds, such as the HSBC FTSE All Share Index Fund.

To sweeten the pill Hargreaves Lansdown has now announced the launch of an "ultra-low-cost UK tracker fund" the SWIP FTSE All Share Index (SWIP Foundation Growth), with a 0.11% TER, which is only available to retail investors on its site.

In addition 12 Vanguard funds have been added to the Vantage Service with TER/AMCs of 0.15% to 0.33%.

These include five equity funds with varied geographical remits, two UK-focused fixed income funds and five blended income funds.
Hargreaves Lansdown said it was also working with Vanguard to add more of their popular funds shortly.

Danny Cox, head of advice at the company, added: "This new range of ultra-low-cost tracker funds further enhances the Vantage Service. We are meeting the needs of investors looking for low cast tracking funds combined with first class service."

As with the rest of the tracker range, Hargreaves Lansdown will charge a £2 platform fee per holding for the additional funds.

There is no charge levied for dealing, monthly investments, setting up or inactivity, however.

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