New fund fees measure

talexuser

Saw an article in the paper puffing Neil Woodford's new fund describing the annual fees as 0.75% with no extras and no initial charge. Then compares with Invesco Perpetual High Income at 1.66% with no mention at all of the fact that one is clean and the other bundled!

When I switched to clean Z class High Income the figures I found were 1.69% TER for the bundled (different from the newspaper) and 0.94% for the clean. Since then a new Y clean class has arrived with another small discount and I should switch to this now if intending to keep for any length of time.

In the confusion we have all got used to total expense ratio, annual management charge, ongoing fund charge, other expenses... etc etc. making comparisons difficult between different funds and houses.

Now I read by December the Financial Conduct Authority will oversee a new method of charge disclosure which is supposed to include every penny of a funds operating costs, with no loopholes for eg churning charges etc.

This is now going to be a "cost per unit" in pounds and pence, ie the cost of holding a single unit of the fund for one year.

Interesting? Any chance it might force a little competition, maybe get just a little nearer to USA style fund charges?