Newbie AMC/fund makeup question

PRES

Hello,

I wonder if you can help. I have relatively recently set up some funds in an ISA with Hargreaves Lansdown and I am trying to get my head around the fee structure. The funds I am all picking all have the initial charge rebated, so fine. However, how does the AMC/TER get charged? Is it built into the price of the fund very day or is there a charge at some stage in the year - assume the former.

Also, I have acccumulation funds, when dividends get paid does that mean extra units are bought and where do I see that?

Thanks for any help!

ISA makeup is below and any comments on the below happily received. I have around £40k invested and no plans to access for 5-10 years, also £2k in Apple shares I have had for 18 months which Trustnet won't let me put into the allocation. Have a pretty risky profile given timescales and no urgency for growth - basically want to outperform sticking it into a FTSE tracker!

Type Total(%)
Invesco Perp Income Acc 29.99
Aberdeen Emerging Markets A 25.02
Artemis Income R Acc 14.91
GLG Technology Equity Ret 11.93
Artemis Strategic Assets R Acc 8.57
AXA Framlington Health Acc 3.96
Aberdeen Latin American Equity A Acc 3.31
First State Indian Subcontinent A GBP Acc 2.31

Lokolo

PRES wrote: »

Hello,

I wonder if you can help. I have relatively recently set up some funds in an ISA with Hargreaves Lansdown and I am trying to get my head around the fee structure. The funds I am all picking all have the initial charge rebated, so fine. However, how does the AMC/TER get charged? Is it built into the price of the fund very day or is there a charge at some stage in the year - assume the former.

Correct, it's built into the price.

PRES wrote: »

Also, I have acccumulation funds, when dividends get paid does that mean extra units are bought and where do I see that?

Accumulation you don't get more units, you get a higher unit price. Just compare a graph of a fund which has both Inc and Acc, and you will see the difference.

PRES wrote: »

ISA makeup is below and any comments on the below happily received. I have around £40k invested and no plans to access for 5-10 years, also £2k in Apple shares I have had for 18 months which Trustnet won't let me put into the allocation. Have a pretty risky profile given timescales and no urgency for growth - basically want to outperform sticking it into a FTSE tracker!

Type Total(%)
Invesco Perp Income Acc 29.99
Aberdeen Emerging Markets A 25.02
Artemis Income R Acc 14.91
GLG Technology Equity Ret 11.93
Artemis Strategic Assets R Acc 8.57
AXA Framlington Health Acc 3.96
Aberdeen Latin American Equity A Acc 3.31
First State Indian Subcontinent A GBP Acc 2.31

That's very risky and I think your timescale of 5-10 years is too little.

PRES

Lokolo wrote: »

That's very risky and I think your timescale of 5-10 years is too little.

Thanks. I am 37 and don't really want to touch this until retirement in 20+ years so actually think I have been a little lazy with my 5-10 year comment. I am paying in max contribution to both my wife and my ISAs each month into these funds, broadly on this allocation. Take your point re risk though - do you think even with this timescale property/bonds etc are sensible?

Lokolo

I'm not very good with asset allocation, but Bonds I would say no to. Property is a difficult one as it is, if you have a home and that's the only property you have then a little bit of property in your portfolio could be good, however, if you plan on buying a BTL investment, I think overall you shouldn't be putting any property into this portfolio.

If you have HL account you can put the stuff in, do an x-ray and see if you are happy with your exposure.

jabbahut40

I would also recommend that you look at the portfolio scanner available on TrustNet. It is free to register and gives a slightly different views to the portfolio x-ray tool on HL. Hope this helps.

Jabba

jamesd

With £40k invested you should be looking to move away from Hargreaves Lansdown on cost grounds. You can easily eliminate 0.5% of the annual charge of most funds by going elsewhere. That's around £200 a year in avoidable charges that you're paying, less whatever rebates you get from HL.

jayship

Which company would you recommend? Your thoughts please.