Investment Diversification Ideas

jimmyjones_2

Contrary_clive wrote: »

Below is the webaddress containing the charging info...

cavendishonline.co.uk/investments/fund-research

I wasnt aware of that url, I was looking at fidelity.co.uk which shows:

BlackRock Emerging Markets Eq Tkr A Acc
Buy Price as of 28/08/2013 £1.076
Sell Price as of 28/08/2013 £1.02

So because we with Cavendish we are exempt from the buy sell spread? Or is it a limitation of the Cavendish website which omits this information?

jimmyjones_2

Ark_Welder wrote: »

It's the pre-RDR 'A' share class that has the 5% bid-offer spread. Cavendish provide the 'D' share class that has minimal spread and a lower ongoing charge.

Got it, the spread is much lower for for the class D at 0.5% on fidelity.co.uk.

Contrary_clive

You might have thought this should be disclosed on the Cavendish charging structure though! When I purchased the fund the daily movement was such that I wouldn't have noticed the 0.5% charge. I bought 1k's worth and when checking for the follwing day the value was £999 so presumably it rose 0.4% on the day since buying.

Perelandra

jimmyjones wrote: »

I wasnt aware of that url, I was looking at fidelity.co.uk which shows:

BlackRock Emerging Markets Eq Tkr A Acc
Buy Price as of 28/08/2013 £1.076
Sell Price as of 28/08/2013 £1.02

So because we with Cavendish we are exempt from the buy sell spread? Or is it a limitation of the Cavendish website which omits this information?

Interesting. I agree with your reasoning over the timeframe, but continuing to look at this (and apologies for hijacking the thread!):

I've done a bit more research, but admit I'm exploring into an area I don't normally look at... daily fund prices.

I think that the 5%+ spread in the above represents the initial charge, which Cavendish customers don't pay. I base this on the following two sources:

http://monevator.com/blackrock-index-trackers/

and the following:

I asked a friend who I know buys this tracker to check the price he paid for this last few purchases. These were as follows:

23/8/13 104.10
21/6/13 102.76
20/5/13 120.95

If I then compare these with the FT's historic NAVs for the fund:

http://markets.ft.com/research//Tearsheets/PriceHistoryPopup?symbol=GB00B65W2626:GBX

The current NAV is similar to the sell price you quoted, and also to the prices that were paid. So I think that Cavendish customers are shielded from 5% of that bid-offer spread, although there does seem to be 0.55% that they're paying.

With regards to the "D" class that's been mentioned, both the "A" and "D" can currently be bought through Cavendish. The "D" though comes with Fidelity's 0.25% platform charge (even for Cavendish users), so will work out to be more expensive overall.

If there's a better way to look at this, I'd be interested!