Commission to IFA

doughnutmachine

jem16 wrote: »

OK fair enough. That is your decision.

However using out of date information, quoting "typical" fees and what you would imagine will happen is not fair on those who might like to use this kind of fund and who would prefer to know realistic costs.[/QUOTE]

Well Jem, I would be absolutely delighted if I could get realistic total costs for this fund of funds. But unfortunately the fund management industry seems reticent about providing this sort of information I wonder why this should be? Could it possible be that the fund management industry know that people would be less likely to buy their products if they knew what they were paying in charges?

Of course the AMC and TER that people are happy to quote on this forum do not include all costs. All those that think a fund of active funds will cost 0.2% pa are deluded.

doughnutmachine

fairleads wrote: »

Thanks for the link.
So if they, the FT, say fund of funds typically cost 2.5% on amcs then surely it follows that a fund of funds of funds such as the axa wealth elite global equity fund will have one more layer of costs ?

it's a reasonable proposition that this fund will have another layer of costs

but luckily i'm not one of the mugs that are invested in it

Lokolo

doughnutmachine wrote: »

Well Jem, I would be absolutely delighted if I could get realistic total costs for this fund of funds. But unfortunately the fund management industry seems reticent about providing this sort of information I wonder why this should be? Could it possible be that the fund management industry know that people would be less likely to buy their products if they knew what they were paying in charges?

Of course the AMC and TER that people are happy to quote on this forum do not include all costs. All those that think a fund of active funds will cost 0.2% pa are deluded.

TER includes pretty much all costs. Of course there are going to be some costs which are near to impossible to calculate.

I wouldn't mind knowing how fund managers split their infrastructure costs against the funds they manage (IT, Finance, HR, Office Buildings etc.).

doughnutmachine

dunstonh wrote: »

The costs are published. Fairleads is just adding made up figures to those published costs to make them bigger.

dunstonh wrote: »

They wont confirm or deny as it is not for them to do so.

Earlier you said the costs for this FoF are published? Now you imply that the fund manager will keep the costs hidden?

*sigh* I never would have thought that getting the total costs for a fund would be so hard such a simple question and the resident expert seems to throw figures about as if he was a bingo caller.

doughnutmachine

Lokolo wrote: »

TER includes pretty much all costs. Of course there are going to be some costs which are near to impossible to calculate.

I wouldn't mind knowing how fund managers split their infrastructure costs against the funds they manage (IT, Finance, HR, Office Buildings etc.).

TER doesn't include dealing costs in underlying investments.... stamp duty alone is 0.5%, and these fund management boys do love paying top dollar so that the broker provides them with "free" analysis..... nice little kickback...

Lokolo

doughnutmachine wrote: »

TER doesn't include dealing costs in underlying investments.... stamp duty alone is 0.5%, and these fund management boys do love paying top dollar so that the broker provides them with "free" analysis..... nice little kickback...

For starters, there are no "dealing costs". It's not like the traders get charged £12.50 fee every time they make a trade! They buy at a certain price, and that's it.

dunstonh

Earlier you said the costs for this FoF are published? Now you imply that the fund manager will keep the costs hidden?

Please quote where I have suggested anything of the sort.

*sigh* I never would have thought that getting the total costs for a fund would be so hard such a simple question and the resident expert seems to throw figures about as if he was a bingo caller.

I'm not the one throwing random figures together to try and present them as fact.

doughnutmachine

Lokolo wrote: »

For starters, there are no "dealing costs". It's not like the traders get charged £12.50 fee every time they make a trade! They buy at a certain price, and that's it.

awfully nice of those stockbrokers not to charge the Unit Trusts when they place a trade. also bl00dy decent for HMRC not to charge 0.5% stamp duty.

I have to admit that I thought the main purpose of the financial industry was to transfer the money from clients' accounts into their own accounts. But if you say the financial industry is a big charity I believe you. Something learned every day.

So does the TER include all the costs that I pay?

I'm afraid not. The TER does not include the trading costs – the costs for buying and selling shares within the fund. The more active a manager is in trading the underlying portfolio, the higher these costs.

http://www.telegraph.co.uk/finance/personalfinance/investing/7923367/More-than-meets-the-eye-to-fund-charges.html

doughnutmachine

dunstonh wrote: »

I'm not the one throwing random figures together to try and present them as fact.

i'm genuinely interested in what the total* fees for the aforementioned AXA fund of funds are? perhaps give a retail fee and the fee an IFA could get the fund for?

*ie every fee involved in running the fund, not just the misleading ones like the AMC and TER.

fairleads

doughnutmachine wrote: »

i'm genuinely interested in what the total* fees for the aforementioned AXA fund of funds are? perhaps give a retail fee and the fee an IFA could get the fund for?

*ie every fee involved in running the fund, not just the misleading ones like the AMC and TER.

You and me both. interesting is that the forum 'calvalry' haven't come out in their droves to support Dh as they usually do. I wonder why?
Challenge to Dh Axa and any IFA to provide us with copies of the cost structure of the unfettered fund in question.
Guys we know you can, so please do it for us and settle this once and for all. Base the cost structure on a 100K fund giving ALL details of amcs, ters, expenses, rebates and the typical adviser fee to set up and review annually. Thanks guys