ftse all share tracker

lvader

The initial charge doesn't apply to all funds, some like the HSBC FTSE 100 are free. Also the initial charge is a percentage, not a fixed amount like £10 and varies from fund to fund.

premierfella

premierfella wrote: »

I'm with you psychic teabag! I was happily posting on fimonkey's thread yesterday thinking that I understood their fund charges, but their internet pages don't help to clarify things do they!

This page mentions "....we may [sic] sure you’ll only pay a minimal £1.50 charge for every shares purchase (usually £10)."
http://www.iii.co.uk/investing/funds/how-invest/funds-builder
Why are they making reference to a "usual" £10? Does that imply that they charge a flat fee for fund purchases as well, or is this entire paragraph hokum and irrelevant to fund purchases - i.e. actually doesn't apply to "Funds Builder" at all but only to the share "Portfolio Builder"?

There is no mention of a regular investment £1.50 charge in the "Charges" section, which I would expect if it applied to funds.
http://www.iii.co.uk/funds/?type=a2z

A follow-up with the contents of the email response I received this afternoon, which clears things up:

"I can confirm that when a customer is making Fund purchase with Interactive Investor using our Regular Investment service, they would pay the Initial Charge and also the Annual Manage Charge for the Fund which is being invested into.

A customer would not pay the £10 commission charge on a Fund Purchase, as this is applicable to real-time UK Stock Purchases.

The £1.50 charge which our Regular Investment information refers to is the reduced commission charge for dealing on UK Stocks via our Regular Investment Service, which as per the above is not applicable to Fund Purchases."

So my initial thoughts are confirmed. For Funds Builder:
- No £1.50 Regular Investment charge applies
- Some of the information on
http://www.iii.co.uk/investing/funds/how-invest/funds-builder
must have simply been copied and pasted from the Portfolio Builder page without proof-reading it to see if it was relevant to funds.

I made direct reference to that page in my query - we'll have to see if that prompts ii to correct it (although since there is no mention of it in the response I received I won't hold my breath!)

All this has prompted me to think about whether I should continue to hold iShares in my ii ISA or (given that I don't actively trade them) whether it would make more sense for me to purchase one of the low TER 0% funds instead (although I expect given that this would be running at a loss for ii a platform charge or alternative charging structure must be planned at some point).

fimonkey

Premierfella, thanks so much for your last post, greatly appreciated!!