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  • FIRST POST
    • lindabea
    • By lindabea 20th Mar 17, 12:12 PM
    • 936Posts
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    lindabea
    Investment Valuation
    • #1
    • 20th Mar 17, 12:12 PM
    Investment Valuation 20th Mar 17 at 12:12 PM
    Am I right in thinking that (ignoring the platform charges) if you were to invest a sum of money in a fund, the growth (or loss) in that fund will be the same irrespective of which platform you use. In other words, are the performances of funds independent of the actual platforms.

    That being the case, what factors do you need to consider when choosing a platform, if you assume that low charges may not necessarily be the best platform.
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Page 1
    • jimjames
    • By jimjames 20th Mar 17, 12:16 PM
    • 12,178 Posts
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    jimjames
    • #2
    • 20th Mar 17, 12:16 PM
    • #2
    • 20th Mar 17, 12:16 PM
    Not necessarily. Some platforms may have lower fee versions of some funds (HL in particular do this) but you need to balance that against the platform fee - sometimes it's still cheaper to go elsewhere.
    That being the case, what factors do you need to consider when choosing a platform, if you assume that low charges may not necessarily be the best platform.
    Originally posted by lindabea
    The same as making any decision, balance the features you need vs cost. For me, low cost was the deciding factor.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • george4064
    • By george4064 20th Mar 17, 12:28 PM
    • 854 Posts
    • 903 Thanks
    george4064
    • #3
    • 20th Mar 17, 12:28 PM
    • #3
    • 20th Mar 17, 12:28 PM
    You may experience different performance between platforms for various reasons:

    - Platforms often have different share classes available for the fund with different charges which would affect performance

    - Different share classes may also mean different valuation points. For example 'Share Class 1' might have a daily valuation point of midday, but Share Class 2 have a daily close of business valuation point. The difference valuation points will result in different performance.

    For the same share class of the same fund, you *should* see exactly the same performance between platforms (Excluding any charges levied by parties other than the fund manager).
    "If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes” Warren Buffett

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    • JohnRo
    • By JohnRo 20th Mar 17, 1:03 PM
    • 2,458 Posts
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    JohnRo
    • #4
    • 20th Mar 17, 1:03 PM
    • #4
    • 20th Mar 17, 1:03 PM
    If you're wanting to ensure that the fund in question that you're looking at and wanting to compare on various platforms is exactly the same one then check that the ISIN (International Securities Identification Number) is identical.

    If the ISIN number matches then you can be confident the security in question is identical.

    for example:

    Woodford Equity Income Fund class A acc ISIN : GB00BLRZQ513
    Woodford Equity Income Fund class A inc ISIN : GB00BLRZQ406
    Woodford Equity Income Fund class C acc ISIN : GB00BLRZQ737
    Woodford Equity Income Fund class C inc ISIN : GB00BLRZQ620
    Woodford Equity Income Fund class X acc ISIN : GB00BLRZQ950
    Woodford Equity Income Fund class X inc ISIN : GB00BLRZQ844
    Woodford Equity Income Fund class Z acc ISIN : GB00BLRZQC88
    Woodford Equity Income Fund class Z inc ISIN : GB00BLRZQB71
    Woodford Equity Income Fund class F acc ISIN : GB00BZ01L372
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
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