Does the TER price on Hargreaves Lansdown include the initial charge?

mr_fishbulb

I'm trying to compare the prices of the Sarisin Agrisar and the Baring Global Agriculture funds when investing through Hargreaves Lansdown.

Sarisin -
Net initial charge - 0.5%
Annual Charge - 1.5%
Annual saving - 0.1%
TER - 1.82%
Performance Charge - 15% above benchmark

Baring -
Net initial charge 0%
Annual Charge - 1.5%
Annual saving - 0%
TER - 1.87%
Performance Charge - 15% above benchmark

(benchmark for both is MSCI World)

So does the Sarasin initial charge make it more expensive then Baring?

Cheers

dunstonh

TER is the annual cost, no initial included.

jimjames

dunstonh wrote: »

TER is the annual cost, no initial included.

For most funds via HL there is no inital charge anyway so the TER will be the total cost.

Bear in mind that the inital charge is one off and TER is every year so a low TER and inital charge will outweigh a higher TER over time and depending on how much etc. 0.5% IC would be covered by 10 years 0.05% TER difference - except with the IC you have less money to invest to start with so compounding will work against you.

If all other factors are the same then personally I would opt for lower IC as it means your money is working for you from day 1.

Mikeyorks

HL have always given the Sarasin fund a glorious thumbs up since pre-launch ..... and several times thereafter. The logic behind such a fund ('everyone has to eat / food inflation / food shortages via climate problems etc') is fairly impeccable? But the performance has lurched from trough to trough. I keep revisiting it, but am far from confident that any improvement is going to be sustained.

HL offer no commentary whatsoever on the Baring offering! Which has always performed consistently better than Sarasin. If I was investing in that area - I know which I'd be choosing. And it wouldn't have a Wealth 150 marker on it!

dunstonh

HL offer no commentary whatsoever on the Baring offering! Which has always performed consistently better than Sarasin. If I was investing in that area - I know which I'd be choosing. And it wouldn't have a Wealth 150 marker on it!

Perhaps Baring dont pay HL and Sarasin do.

Agriculture has been the next big thing for many many years now. It keeps getting hyped up and has failed to deliver. Maybe 2011...... 12.....13.....14.....15...

mr_fishbulb

Thanks All

Had my eye on the CF Eclectica fund for a couple of years, but never fully got the urge to jump. Like dunstonh says, agri hasn't really taken off despite all the ramping. Now my portfolio is large enough to allow it to be diversified I thought I might turn again to agri.

A few things I have read suggest that the Sarasin fund invests in areas which will do better as agri grows. The Barings fund has a similar approach and seems to have performed better in the past (not that there is much of a past when it comes to these funds).

sabretoothtigger

Agriculture has been big this year, behind the scenes maybe. Food prices rose 20% since sept along with other things. Some might say its linked to riots going on now

The main problem maybe is with supply, the ability for those with demand for food to also produce it themselves (to some extent) So its a very wobbly ascension if there is an uptrend.

Maybe it relys on a more industrialised population which is a slow going thing. I did hear recently that the majority of the world now lives within cities and this is the first time ever thats been true. So the tide is turning I do think.

Also its a play on currency and the appreciation of the common poor and their budget. Food is a very large proportion of their costs as it was previously within UK and of course we got alot richer and now dont appreciate our wealth but most of the world especially india china poor still spend most money on the cheapest food?

It leads it to much wider arguments, China depresses the wealth of their currency and therefore the purchasing power of its people. Politically this likely better allows them to retain power I think but who knows...

I dont think agriculture can be dismissed easily anyway, its a big subject and its a slow long term gain most likely not quick bucks so with regards to costs, go for the lowest is probably best.
There is a non energy commodities etf, maybe that is best

I own sarasin, went up for a while well then blipped down alot with japan

not much between them
http://i.imgur.com/7nuyl.png

Over the same time period, my CRB tracker rose 35% and the ftse 10%
http://www.google.co.uk//finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1300847336560&chddm=180297&chls=IntervalBasedLine&cmpto=INDEXFTSE:.FTSE&cmptdms=0&q=LON:LCTY&

Rollinghome

Alternatively, you could do as the gold bugs and avoid all those management charges by filling your cupboards with baked beans. Sort of a Physical Baked Beans fund. Will it be the next big thing? Get in early.

sabretoothtigger

filling your cupboards with baked beans

Buying the end product makes them a consumer, customer or speculator at best not an investor and apparently the difference is not appreciated

If there is a long term rise the companies producing the supply of beans or whatever should increase alot. Profit margin growth creates alot of wealth, I have a small explanation pic somewhere

Speculating on prices relys on it rising during that particular period otherwise its dead money (the virtual equal to sell by date I guess) so I been lucky on the CRB contracts the last 2 years or so but really Im not sure it is efficient longer term, its the first thing I'd cash out in this sector.