Global Equity trackers vs other passive 100% equity funds

dunstonh

I've noticed the OCF of the HSBC FTSE All World Accumulation fund is showing as 0.16% on some platforms and 0.18% on others. According to their disclosure document (at 14/6/2018) the OCF is 0.19% and transaction costs are 0.04%.

Snapshot data has different dates and frequences to update. The charges are based on the snapshot date.

0.16% is the OCF given to Financial Express on 15th Nov 2017 by HSBC
0.04% is the transaction costs as at 01/06/2018
0.20% is the target market OCF.

Some platforms are using the target market OCF in their costs disclosure.
Some fund houses are using their OCF as the target market OCF. Some are using the OCF plus transaction charges. Some are using a different figure that cannot be easily explained.

If you want a big inconsistency, then you need to look at Aberdeen UK Property Feeder.

Class I is 0.89% OCF
Transaction charges 0.04%
Target Market OCF is 1.40%.

Again, some platforms are using the 1.40% in the costs disclosure as the OCF.

MiFIDII is creating some anomalies and inconsistent data being given.

londoninvestor

dunstonh wrote: »

If you want a big inconsistency, then you need to look at Aberdeen UK Property Feeder.
Transaction charges 0.04%

That seems implausibly low for a property fund. Do you think they are defining "transactions" just as the feeder fund investing in the main fund, rather than taking the transaction costs of the main fund?

dunstonh

londoninvestor wrote: »

That seems implausibly low for a property fund. Do you think they are defining "transactions" just as the feeder fund investing in the main fund, rather than taking the transaction costs of the main fund?

My guess was just that and the 1.40% includes the main fund and not just the feeder.

However, with transaction charge being so unreliable because it can include profit and loss and is not just a charge, it is hard to say.

jsinc

On HSBC and Vanguard, it's not simple to back out comparable expenses and tracking errors from returns. Available index data is in USD but the funds in GBP. I assume FTSE publish non-USD versions but I couldn't find them, or a way to chart either fund against specific benchmark to work it out.

Both publish performance info in their annual reports and accounts. For example in 2017 % tracking error/direct transaction costs/operating charges were 0.15/0.07/0.24 for Vanguard and 0.11/0.03/0.19 for HSBC.

But HSBC year end is 15/05/17, Vanguard's 31/10/17 (and started 08/11/16).
etc