Investment Trust charges (again...)

melbury

Sorry I have come back to this old chestnut again:o

I have now whittled it down to three dividend paying investment trusts that I am interested in:

City of London
The Merchants Trust
Invesco Perpetual High Income

I can't seem to find out though how they take their management charges. As previously mentioned, I would like to invest in one where the charge is reflected in the share price rather than have to pay a quarterly charge or something.

Please can someone point me in the right direction?

Many thanks.

Glen_Clark

Try these links
http://markets.ft.com/research/Markets/Tearsheets/Summary?s=CTY:LSE

http://markets.ft.com/research/Markets/Tearsheets/Summary?s=MRCH:LSE

http://markets.ft.com/RESEARCH/Markets/Company-Search?searchField=Invesco&country=&secType=WSOD.EQ

melbury

Glen_Clark wrote: »

Try these links
http://markets.ft.com/research/Markets/Tearsheets/Summary?s=CTY:LSE

http://markets.ft.com/research/Markets/Tearsheets/Summary?s=MRCH:LSE

http://markets.ft.com/RESEARCH/Markets/Company-Search?searchField=Invesco&country=&secType=WSOD.EQ

Thanks Glen Clark. I have read each one, but still can't work out whether the fee is reflected in the share price or if it is a separate charge:o Sorry to be so thick, I am obviously missing something here:o

ffacoffipawb

melbury wrote: »

Sorry I have come back to this old chestnut again:o

I have now whittled it down to three dividend paying investment trusts that I am interested in:

City of London
The Merchants Trust
Invesco Perpetual High Income

I can't seem to find out though how they take their management charges. As previously mentioned, I would like to invest in one where the charge is reflected in the share price rather than have to pay a quarterly charge or something.

Please can someone point me in the right direction?

Many thanks.

Isn't the third one an OEIC (unit trust)?

Totton

The last annual report from CTY stated '* Net asset value per ordinary share is calculated after deducting all prior charges, including the preference and preferred ordinary stocks, at par.'

You can usually find the charges explained in the IT Annual Reports. A good place to find them is via the AIC or HL websites as both provide links to company reports. Merchants is at http://documents.financialexpress.net/Literature/4378484.pdf

HTH,
Mickey

melbury

ffacoffipawb wrote: »

Isn't the third one an OEIC (unit trust)?

Thanks for that, I will cross that one off my list then.

Linton

melbury wrote: »

Sorry I have come back to this old chestnut again:o

I have now whittled it down to three dividend paying investment trusts that I am interested in:

City of London
The Merchants Trust
Invesco Perpetual High Income

I can't seem to find out though how they take their management charges. As previously mentioned, I would like to invest in one where the charge is reflected in the share price rather than have to pay a quarterly charge or something.

Please can someone point me in the right direction?

Many thanks.

Charges for funds and investment trusts are always taken from the invested assets and so included in the price. You are never presented with a separate bill. Equivalent to Tescos - their charges are included in the price of the beans, they dont have a separate bill at the checkout to cover staff wages, transport, supermarket heating and lighting etc etc.

pqrdef

However, with investment trusts, you'll pay broker's commission to buy and sell, and stamp duty, and bid/offer spread, and the broker may charge a retainer.

With funds, there are typically no explicit charges, because the broker lives off a kickback from what the manager skims off the fund.

redbuzzard

melbury wrote: »

Thanks for that, I will cross that one off my list then.

Edinburgh Investment Trust is the IT version of the IP High Income Fund, if I recall correctly.

E&OE.

melbury

Linton wrote: »

Charges for funds and investment trusts are always taken from the invested assets and so included in the price. You are never presented with a separate bill. Equivalent to Tescos - their charges are included in the price of the beans, they dont have a separate bill at the checkout to cover staff wages, transport, supermarket heating and lighting etc etc.

Well I always thought that was the case, but then a few months ago I had a communication from Allianz informing me that they were going to increase the charge quarterly for holding my investment trust ISA and it was quite a bit. I therefore decided to opt out of the ISA wrapper and paid for a share certificate to be sent to me.

Perelandra

redbuzzard wrote: »

Edinburgh Investment Trust is the IT version of the IP High Income Fund, if I recall correctly.

E&OE.

They're certainly very similar!