The true cost of fund fees

newtim

Hello!
On the fees and charges for managed funds it shows several types of charge:
Annual Charges
AMC 0.7%
Total Expense Ratio -
Fund Ongoing Charge 0.8%
Performance Fee -

Are some elements included within the others, so the 0.7% AMC is within the 0.8% Fund Ongoing Charge? Or do you add all the fees together to get the total (so the above is 1.5%)?

EdSwippet

From Moneywise's Investment charges explained:

ONGOING CHARGES FIGURE (OCF)
This is the new term for the total expense ratio (TER) and it gives the most accurate measure of what it costs to invest in a fund. The OCF is made up of the annual management charge (AMC) and other operating costs.

newtim

Thank you EdSwippet

Glen_Clark

EdSwippet wrote: »

From Moneywise's Investment charges explained:

Good link, Thanks for posting. However it says 'ETF transactions are subject to the same fees as share transactions'.
It doesn't appear to point out that our ETF trades don't attract stamp duty when they are domiciled in Ireland.
You can get a S&P ETF for as little as 0.07% , no stamp duty, and very low dealing spreads. But there is no discount to net asset value like there is with most Investment Trusts.

dunstonh

Everyone goes by OCF nowadays. Indeed, it is largely a requirement to do so. Exception is on life and pension funds where the term AMC is still used but actually is the equivalent of OCF.