Historic yield and fund charges?

Asghar

Are the historic yields, (or just yields in general) quoted in unit trusts, before or after the Ongoing Fund Charges have been taken?
Can't seem to be able to find the answer anywhere.

For instance, the Fundsmith Equity fund Class I Acc has an Ongoing Fund Charge of 0.97% which is taken from the income of the fund. It also quotes a yield of 0.97%.
Will the charge be taken from the yield to make 0% or is the 0.97% after charges and the identical numbers are just a coincidence?

It seems obvious that where fund charges are taken from the capital of the fund, then the yield quoted is what you can expect to roughly receive but what about when the fund's charges are taken from the income? If a bond fund has a yield of 4% and ongoing charge of 0.5%, do you get 4% for 3.5%?

Hope it's not a silly question.

bowlhead99

The yields quoted are what the investors actually get after all charges.

So if the fund is able to get 5% in income from its investees, and then they take 0.97% from income to cover the management fees and other charges, and distribute all the remaining net income; the net income that would be distributed to you as an investor in that particular year, and quoted as the yield, would be 4.03%.

I'm not familiar with the Fundsmith numbers but basically if they are saying they are delivering a yield of 0.97% to their investors and they have an ongoing charges figure of 0.97% a year, mostly taken from income rather than capital - the implication is that they are making a gross yield from the portfolio companies in which they invest, of 1.94%. Which doesn't sound unreasonable for a portfolio of mostly "consumer defensive" companies listed in USA (which is broadly what Smith's fund holds).

Asghar

Thanks bowlhead99, for the detailed reply.
I could not seem to find a definite answer anywhere.

I normally use Hargreaves Lansdown for fund research as they are the only ones that state where the fund charges are taken from, income or capital.