Transaction costs for MAN GLG UK INCOME PROFESSIONAL CLASS - INCOME (GBP) on HL

neildt

Using HL illustration for costs for the fund MAN GLG UK INCOME PROFESSIONAL CLASS - INCOME (GBP), why are the transaction costs so high compared to some other funds.  For example, this fund is £237.35.  Also, the historic yield which is quoted currently 4.26%, this is inclusive of all fees/costs?

Linton

The costs are totalled over 5 years by HL.  Normally they are expressed as a % per year.   The transaction costs dont necessarily represent real costs imposed by the manager.   What they really mean for investors is unclear - for example they can be negative.  Hopefully the only person around here seems to understand them, Dunstonh, will be along shortly to explain.

All published fund performance data takes into account all fund charges.  So the listed performance and the yield are what you would have actually got.  Obviously the platform charges are extra.

I hold the fund and am happy it is meeting the objective.

dunstonh

why are the transaction costs so high compared to some other funds. 

No real investor takes any notice of the transaction costs (TC) figure.  This is because there is no fixed way to calculate it and some firms include things that others do not.  You can have two different funds with identical investments, transactions etc and one uses a different methodology to the other.  The actual charges are identical but the disclose could have a 0.6% difference.  if fund houses were required to use the same methodology then it may have some value.  However, as it stands, it is a bit of a mess.

Also, HL appears to be using the wrong figure as that fund has a TC of 0.67% and OCF of 0.90% (snapshot date 30/06/21).  HL doesn't say what the TC is in their calculation or the snapshot date they used but the fact it is almost the same as the OCF suggests it is around 0.89% (maybe they are using an older snapshot date but I checked several other platforms/data sources and they are all using 0.67%)


(Source: Financial Express)

I calculate it as follows:

Also, the historic yield which is quoted currently 4.26%, this is inclusive of all fees/costs?

Yield is not the rate of return.  it is the income generated within the fund (doesnt include growth).

neildt

Thanks, I appreciate the clear explanation.