whats the most expensive fund you hold

blinko

Investec Africa & Middle East P Acc Net

i gotta say i am being robbed blind by these boys 3.60, net xpense ratio watever that means

Reaper

Oddly HL claims the TER is just 1.61%. One of them must be wrong.
http://www.h-l.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/i/investec-africa--and--middle-east-class-p-accumulation

blinko

http://www.morningstar.co.uk/uk/snapshot/snapshot.aspx?tab=14&id=F000001ZLK&lang=en-GB&DocumentId=64a913e80b13a97322fadeb348a5d0e7&Format=PDF

factsheet says 3.60 these lot are robbing bastruds but HL fact sheet sauys 1.61

http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/Documents.aspx?sedol=B2R46K0&type=packet_fund_class_doc_simplified_prospectus&user=hl_web_test


Annual management fee: 1.50%
Est. total expense ratio: 3.60%
An additional 20% performance fee is
charged annually on performance in
excess of 1 month GBP LIBOR + 4%,
with a High Water Mark

and just found out another fund has 0.5% exit fee gggrrrr

infact how does this work



nvesting for growth – Global Free Enterprise Fund
The table below shows the effect of charges and expenses on a
£1,000 LUMP SUM INVESTMENT into Class A Shares
(accumulation) assuming a growth rate of 6% per annum. Total
Expense Ratio 1.61%.
At the end Investment Effect of What you might
of year to date deductions to get back assuming
date a growth rate of 6%
1 £1,000 £64 £996
3 £1,000 £107 £1,080
5 £1,000 £159 £1,170
10 £1,000 £335 £1,450
The last line in the table shows that over 10 years the effect of the
total charges and expenses could amount to £335. Putting it
another way, this would have the same effect as bringing down
investment growth from 6.0% a year to 3.83% a year.

if the TER is 1.61% and growth 6% how come it reduces 1060 to 996...???

Chris_P_2

why on earth would you invest in that fund!!! Look at the performance - underperforming. You'd be better off with a tracker

blinko

i know looking at it now, but iw anted exposure to africa and i dont know of any trackers im with HL

infact i think i am going to dump it and hold cash for now or put it in a short term punt

but thanks for looking oout for it, its a shame it seems a decent fund but the performance is woeful

wriggly

blinko wrote: »

Total Expense Ratio 1.61%.
At the end Investment Effect of What you might
of year to date deductions to get back assuming
date a growth rate of 6%
1 £1,000 £64 £996
3 £1,000 £107 £1,080
5 £1,000 £159 £1,170
10 £1,000 £335 £1,450
The last line in the table shows that over 10 years the effect of the
total charges and expenses could amount to £335. Putting it
another way, this would have the same effect as bringing down
investment growth from 6.0% a year to 3.83% a year.

if the TER is 1.61% and growth 6% how come it reduces 1060 to 996...???

Is there an up-front fee? For example a 4.5% up-front fee would give you a 1st year value of:
1000 * (100-4.5)/100 = 955
955 * (1 + (6 - 1.61) / 100) = 996.92
The actual value may be different depending on when the charges are taken.

wriggly

By the way, my most expensive fund has a TER of 1.95%. Bought in 2000-2001, invests in Australian shares, and in hindsight turned out to be a good choice. I am selling now, while the going is good and buying cheap indexes (e.g Vanguard Developed World ex-UK with TER of 0.30%).

blinko

thanks there is but HL rebate all of it

ahhh ididnt include an initial charge thats what i thought ,ahh maybe thats why i got my calcs wrong

damn these charges do build up dont they most of my funds have a 2% TER eeekkk

Reaper

blinko wrote: »

damn these charges do build up dont they most of my funds have a 2% TER eeekkk

LOL you have changed your tune. Only a few days ago when discussing the best discount brokers you said a 0.5% difference on the annual charges was irrelevent. You could make a 25% saving!

Kalahary

To follow on from Reaper's post, have a look at this if your wondering where all your money has gone.

Reaper

Kalahary wrote: »

To follow on from Reaper's post, have a look at this if your wondering where all your money has gone.

That article actually missed more charges! They only talk about the Annual Management Charge as the yearly fee, but actually there are hidden bits and pieces on top of that which mean you should use the Total Expense Ratio instead as that includes most of them. Not performance fees though which I object to.

On the plus side not many people pay the full upfront fee as discount brokers and to some extent even IFAs reduce it.