working out true TER after discounts

accy

Thinking of going with fidelity pathfinder fund for the simple reason as i am unexpericed in the field and would prefer the experts to manage it for me. The fund is 25-75% towards equity.

Fidelity PathFinder Freedom 4 Fund Features
Dynamically invests in the best investment managers from across the market, from Fidelity and other providers

High allocation to growth assets: equities, commodities and bonds, aiming for higher long term returns

Alters its allocation to each asset class over time to react to market and economic conditions.

The TER is 2.09% (which i know is high)
but you get 50% of the 1.5% amc and i will be transferring over a s&s isa from my previous provider for which i will receive approx £120 cashback.

After the above info what does my true TER workout at?
many thanks

BLB53

After the above info what does my true TER workout at?

In my opinion - too much, look for something with much lower costs like Vanguard.

Shaolin_Monkey

The AMC is quoted as 1.25%, and other expenses 0.84%, making a TER of 2.09%. The high 'other expenses' figure is fairly typical with multi manager funds, because the funds they invest in have their own fees. If Fidelity reduced the AMC by 50% (to 0.625%) that would reduce the TER to 1.465%.

I personally wouldn't bother trying to incorporate the cash back offer into the total expense ratio. The TER is only really relevant for ongoing charges. In the same way, initial charges are not incorporated into the TER figures either.

accy

Shaolin_Monkey wrote: »

The AMC is quoted as 1.25%, and other expenses 0.84%, making a TER of 2.09%. The high 'other expenses' figure is fairly typical with multi manager funds, because the funds they invest in have their own fees. If Fidelity reduced the AMC by 50% (to 0.625%) that would reduce the TER to 1.465%.

I personally wouldn't bother trying to incorporate the cash back offer into the total expense ratio. The TER is only really relevant for ongoing charges. In the same way, initial charges are not incorporated into the TER figures either.

Thanks for the info

Unfortunately the s&s isa tranfer has already started and money transferred ( rushed into it ).
Looking for 3 year growth fund.. lump sum £16000 and £300 monthly drip feed. Any low cost funds/portfolios recommended?

dunstonh

Looking for 3 year growth fund.. lump sum £16000 and £300 monthly drip feed. Any low cost funds/portfolios recommended?

three years is far too short for a regular contribution (10-15 years is more the norm) and is high risk for single investments as well. My "recommendation" would be to stick to cash savings unless you are confident of running an investment and have the capacity to afford the quite possible losses.