Artemis Income Fund. Very wide spread... why?

skillboy

Thanks for all your valuable comments.

To sum up them, are you saying that if I buy the Artemis Income Fund through HL I won't have to pay the over 6% spread, it is more likely to be less than 1%?

Is that the same when I eventually sell?

talexuser

skillboy wrote: »

Is that the same when I eventually sell?

The spread is only applicable to the costs of getting in. Once you are in the lower offer price is the one you can sell at.

Totton

cepheus wrote: »

I would avoid Unit trusts (unlike OEICS) like the plague, their pricing is opaque and the fund managers still seem to be allowed to award themselves free money by widening the spread without sufficient justification. The introduction of OEICS seem to have spoilt their free lunch in this regard.

Methinks you might need to look at how OEICS are priced if you think they are opaque. Think of mid-pricing and you get an idea :-)

pip895

skillboy wrote: »

To sum up them, are you saying that if I buy the Artemis Income Fund through HL I won't have to pay the over 6% spread, it is more likely to be less than 1%?

Not convinced about that - I think you will be ~6% down on day 1. One thing to watch is that some funds soft close by bumping up initial charges to new investors. I cant see anything to suggest this has happened & its in HL's 150?!, - anyway personally I wouldn't touch it - there are so many other good funds to chose from.

talexuser

pip895 wrote: »

Not convinced about that - I think you will be ~6% down on day 1.

You think wrong. e.g.

http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/a/artemis-income-retail-income

You will be ~0.75% down on day 1.

cepheus

You and Yours on what I think was the Tuesday 10th Dec edition interviewed a solicitor and a fund manager (who is criticising other fund managers) about fund fee transparency. Seems that 13 years after the authorities asked them for full disclosure of ongoing fees nothing has been done. You may have to wait until Friday to hear all of the week episodes together.