Investment Fund Charges

Wispa72

Hi, this is my very first post on any forum so please be gentle! I currently have a small investment in FP Russell Investment Multi Asset Growth IV. It was something my old financial adviser set up many years ago. I no longer have a financial adviser and I left this sitting on the same platform (Elevate Standard Life) that I log into myself. However, I have just received the Cost and Charges Discloser Letter from the platform provider and the percentages charged for the actual fund is 0.88% versus the 0.58% that the Fund Fact sheet quotes. (This is just the Ongoing Charges,  Transaction and platform charges are separate.) Is this 'normal' for the Fact sheet On-going charge amount to be different to the amount charged and if so how is it possible to compare funds and can they then charge what they like ?  I hope I am missing something obvious and/or not understanding. Many Thanks for any help.

SonOf

However, I have just received the Cost and Charges Discloser Letter from the platform provider and the percentages charged for the actual fund is 0.88% versus the 0.58% that the Fund Fact sheet quotes.
Fund charges are updated more frequently since MiFIDII started in 2018.   So, snapshots on a given date may not by correct later on.   For example, the OCF is now showing as 0.62% with transaction charges of 0.20% (although you should generally disregard the transaction charges column)

The annual costs and charges disclosure from platforms can also show the percentage in a time weighted way.   For example, they will take the charges you have paid over the year and apply it as a percentage of the value on the date it was prepared.   Your value was not the same every day of the year.  So, this will make the percentage figure inaccurate.  It is one of several flaws in the MIFIDII requirements.

FP Russell are themselves providing two different figures currently.
Ongoing cost ex-ante is 0.58%
Ongoing cost (OCF) is 0.62%
Elevate use the ongoing cost ex ante normally.

Is it possible they are adding the 0.30% platform charge (for those less than £150k) to the 0.58% in your disclosure.

Wispa72

Hi Thank you very much for you comprehensive reply, that all makes sense. The platform charges are shown separately too . So the overall the charges are even higher!