Sipp loyalty bonus for Hargreaves Lansdown
Hargreaves Lansdown is introducing a loyalty bonus of up to 0.5 per cent a year on more than1,000 investment funds for its 120,000 self-invested personal pension investors.
According to a statement from the listed advisory firm, 4734 members of the 47 workplace wrap account schemes that Hargreaves Lansdown has set up in the past two years will share in the bonus.
Based on the 0.25 per cent bonus on Neil Woodford’s Invesco Perpetual High Income fund, for example, a self-invested personal pension with a value of £20,000 could see a loyalty bonus of £660 in 10 years, while £50,000 would add £1650.
The loyalty bonus will be credited automatically to Sipp investors’ cash account, in most cases on a monthly basis, starting in January 2013.
Alex Davies, pensions managing director, said: “Hargreaves Lansdown already provides over £200m a year in discounts and rebates to clients. Technology improvements and greater economies of scale mean we can now bring our Sipp discounts up to the same level as our Isa.”