Fund charges different between providers

DennisTenus

Hi,

I'm confused, this HSBC index is the same class and type between HL (0.18%) and CSD (0.35%) so why does it show the charge (OCF/TER) as completely different?

https://www.charles-stanley-direct.co.uk/ViewFund?Sedol=B80QG05&Isin=GB00B80QG052&PreviousSearchResults=%2FInvestmentSearch%2FSearch%3FSearchText%3Dhsbc%2520ftse%2520250%2520index

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/h/hsbc-ftse-250-index-class-c-accumulation

It's not just this one either I don't think, there is others, that's without not even taking HL's discount into account with some of them.

What am I missing here?

Linton

Charles Stanley list the Total Ongoing Charge which their glossary defines as OCF+transaction costs +incidental costs, whereas HL show the OCF?

DennisTenus

Ok but I thought CSD and HL both just charge a % based on the value of funds held? HL being 0.45% and CSD 0.35% ??

Plus the fund dealers charge (OCF) obviously

ColdIron

After a brief look it looks like CSD are including transaction costs into their 'total ongoing charges' while HL are just showing OCF. If you go to the 'Costs' tab at HL you will see the breakdown including transaction charges. As these are fund charges and the fund is the same the cost to you will be the same. The way that transaction charges have been handled by the industry seems a complete horlicks to me

Linton

DennisTenus wrote: »

Ok but I thought CSD and HL both just charge a % based on the value of funds held? HL being 0.45% and CSD 0.35% ??

Plus the fund dealers charge (OCF) obviously

The platform fee is charged separately. The fund charges are those incurred internally by the management of the fund. They are included in the published price and so are not an extra you have to pay. The OCF as shown by HL does not include everything, the fund charge shown by CSD is as I said the OCF + extras.

ColdIron

DennisTenus wrote: »

Ok but I thought CSD and HL both just charge a % based on the value of funds held? HL being 0.45% and CSD 0.35% ??

You are confusing fund and platform charges, the figures you quote here are platform charges and will differ by platform

Plus the fund dealers charge (OCF) obviously

Or perhaps not so obviously. The figures you started with in your OP are fund charges and you switched horses in your post #3

DennisTenus

Ok so ignoring the platform charges, is this particular fund and class more expensive to hold at HL or CSD? or is it actually the same because HL don't discount this one?

Linton

DennisTenus wrote: »

Ok so ignoring the platform charges, is this particular fund and class more expensive to hold at HL or CSD? or is it actually the same because HL don't discount this one?

They are exactly the same fund and will show exactly the same gains and falls. Other than the platform charge there is nothing different that you explicitly pay. The difference is in how the internal costs are reported. Also note that the reported charges are based on historical data and so may change over time depending on the actual costs the Fund Manager incurs. Reported charges can vary simply because they relate to different timeframes.

ColdIron

DennisTenus wrote: »

Ok so ignoring the platform charges, is this particular fund and class more expensive to hold at HL or CSD?

It is the same

ColdIron wrote: »

As these are fund charges and the fund is the same the cost to you will be the same.

DennisTenus

Ok thanks

I actually hold the class S at HL which is discounted, which I don't think CSD have so is it cheaper to hold this fund at HL?

i realise the platform fee is 0.10% more at HL than CSD so taking the discount into account, there is an overall 0.01% difference.... am I right?

ColdIron

HL offer a 0.09% discount on the OCF but charge 0.10% more for their platform so CSD is cheaper by 0.01% (one hundredth of one percent) or about £2 pa on an ISA allowance of £20,000