Is buying a fund from another provider cheaper?

lionel_hutz

I have been thinking of investing in the Global technology index trust fund from legal and general which has fees of 0.70% https://www.legalandgeneral.com/investments/funds/full-fund-range/equities-index-tracking/global-technology-index-trust.html but when I was searching for information on it I noticed that fidelity sell the exact same find but the fees on it are 0.32% https://www.fidelity.co.uk/factsheets/Legal-&-General-Global-Technology-Index-Trust-(I)---Acc/GB00B0CNH163-GBP/?id=GB00B0CNH163GBP&idType=isin&marketCode=&idCurrencyId= from what I can see. Am I missing something?

MarkBargain

I expect it is because the 0.7% includes their platform fee, whereas with Fidelity their platform fee is added on?

I invest in that fund through iWeb and pay 0.32% (plus a £5 platform fee to buy the fund).

Heedtheadvice

From what I see via the two links, the Fidelity Ongoing charges have a definition "the OCF displayed on the factsheet is the most recent OCF from the provider and will match the OCF in the pre-sales illustration document. Please be aware the factsheet OCF may not necessarily match the OCF in the KIID/KID document as the KIID/KID document is published by the provider annually following the completion of the audited accounts." My italics.


The L&G info is " OCF for a fund is quoted on the 'Key Investor Information' document,... "


So it would seem the OCF's data are apples and pears.....

[Deleted User]

MarkBargain wrote: »

I expect it is because the 0.7% includes their platform fee, whereas with Fidelity their platform fee is added on?

I invest in that fund through iWeb and pay 0.32% (plus a £5 platform fee to buy the fund).

I just checked on iWeb, this fund Legal & General Global Technology Index Trust Class R Accumulation -ISIN:GB0001955755 charges 0.70%. Check your KIID.

MarkBargain

pioruns wrote: »

I just checked on iWeb, this fund Legal & General Global Technology Index Trust Class R Accumulation -ISIN:GB0001955755 charges 0.70%. Check your KIID.

Oh yes, I have L&G Global Technology Index I Acc (Accumulation) with a fee of 0.32% https://www.markets.iweb-sharedealing.co.uk/funds-centre/fund-supermarket/detail/GB00B0CNH163



The funds look very similar, in fact the 0.32% has performed a bit better over the last five years (maybe due to the fee?). 0.7% is high for an index tracker fund.

Prism

There are two classes of the fund. R is more expensive than I.

[Deleted User]

iWeb naming is at follows:

Legal & General Global Technology Index Trust Class I Accumulation -ISIN:GB00B0CNH163: L&G GLOBAL TECHNOLOGY INDEX TRUST(I)ACC
Legal & General Global Technology Index Trust Class R Accumulation -ISIN:GB0001955755: GBL TECHNOLOGY IDX TST ACC

iWeb naming is somewhat confusing, both funds are in completely different places on drop-down list, due to alphabetical sorting. Always check KIID to make sure you select exactly the one you are looking for.

lionel_hutz

MarkBargain wrote: »

I expect it is because the 0.7% includes their platform fee, whereas with Fidelity their platform fee is added on?

I invest in that fund through iWeb and pay 0.32% (plus a £5 platform fee to buy the fund).

It seems like a decent fund to invest in based on return and risk. I’ve got 20 years left till I retire and both a workplace and personal pension, at the moment I have my savings earning nothing for me in an ISA so thought I’d transfer just over half into this fund and start a new ISA for this year in a lower risk fund that I’d invest monthly into.

Any advice welcome.

Albermarle

I expect it is because the 0.7% includes their platform fee, whereas with Fidelity their platform fee is added on?

This is correct . If you have an isa with L&G there is no separate platform fee .
As another example a simple index tracker costs 0.5% with L&G but may only be 0.1% with other platforms .

MarkBargain

Albermarle wrote: »

This is correct . If you have an isa with L&G there is no separate platform fee .
As another example a simple index tracker costs 0.5% with L&G but may only be 0.1% with other platforms .

Yes, and the difference of 0.4% pa can add up to a lot of money over the years. Best to go with a cheaper platform to keep costs as low as possible.

Albermarle

Yes, and the difference of 0.4% pa can add up to a lot of money over the years. Best to go with a cheaper platform to keep costs as low as possible.

It is not a 0.4% difference as you will have to pay some kind of fee for another platform . At the popular HL platform - 0.45% . Others are cheaper though .