Cavendish/Fidelity and fees

Rollinghome

RandomGuy wrote: »

I was going to wait until the end of the tax year in case they issued a statement breakdown but I would have thought we'd be able to see this online too throughout the year.

If you look at your largest holding and select "View transactions", you should see transactions saying something like "Service Fee: Sell" each month. That details how many units, or parts of units, were sold to pay the fees and their value. Looking at the holding again you'll also notice that number of units you now have has been reduced by the same amount.

They used to issue a valuation and statement twice a year and a tax voucher, if applicable, late April/early May. Should be pdf copies of those in your documents.

Calleja

So I emailed Fidelity the above query and received the following reply:


You are investing £200 by Montly Savings Plan into the Vanguard LifeStrategy 60% Equity Acc fund (VASEA). We are currently unable to deduct the fees your account because you only hold oneVanguard fund whose unit price is very high. As at the last confirmed dealing point on 7 April 2017, the unit price of the VASEA fund was £169.94 per unit, and the minimum deduction for the service fee is of one unit from the fund.

Consequently, the service fees for your VASEA fund holding will continue to be rolled over until we are able make the deduction. The same applies for the AOF; however, the only difference is that the AOF is waived completely after six months. Once there has been a deduction, you will be able to view the fee details online and also in your six-monthly Statement and Valuation.


So do I understand correctly - fees are deducted as units? And because my current holding is very small (less then £1k), they will continue to roll over the charge until the fees equal one unit (i.e. currently £169)? But that sounds like its going to take forever?!


Or am I entirely misunderstanding? And is this something I should be concerned about??


Thanks again for any help (and your patience!)