Understanding TER fees

flightless

Hi,

I have a S&S ISA with Hargreaves Lansdown

One question I thought I knew the answer to but then started second guessing is:

When is the TER on each fund paid? H&L list my current gain/loss %, are the fees already accounted for in the fund and I don't get a separate bill at some point? Is this % Net or Gross? (I have 2 trackers with platform fees and I know they are charge on my account monthly).

Thanks and sorry for the stupid question.

dunstonh

When is the TER on each fund paid?

The charges equate to the annual cost and are reflected in the unit price. 1/365th is the best way of looking at it for each day.

H&L list my current gain/loss %, are the fees already accounted for in the fund

returns are published net of annual charges.

I don't get a separate bill at some point?

No. Although with unbundling of charges, that will come if the platform of your choice currently doesn't do it (doesnt make it more expensive. Just more transparent).

Is this % Net or Gross?

It depends on the data source you use. The data source I use allows either by selection so you can match the tax wrapper. Most consumer versions are cut down versions of the type advisers use and only show the net version.

flightless

Great,

That was what I hoped.

Thanks

innovate

dunstonh wrote: »

1/65th is the best way of looking at it for each day.

Typo? 1/365th?

dunstonh

innovate wrote: »

Typo? 1/365th?

yep thanks. i know time flies as you get older but its not quite at at 1/65th yet!