Confused re costs

olbas_oil

I've been following some of the 'near cash' threads and decided to buy £10k of CSH2.
Looking at the KID it says there are no entry or exit charges, but a 0.07% ongoing charge.
But the broker (x-o) is showing this screen, asking me to confirm I have read the KID:



Where does the £514.46 come from? Surely this is bad data?
The same deal on iWeb has the same ongoing charge, but no exit charge.

I phoned X-O who told me the screen above is for illustrative purposes only. They did not seem to be concerned about it, but this has really knocked my confidence. Am I missing something? 

ColdIron

Entry or exit fees are practically unheard of these days but there is probably a regulatory requirement to disclose them in the KIID while legacy funds still exist. Don't worry, it's highly unlikely that you will be charged

Linton

I have never heard of a case where an entry charge is not completely discounted by a mainstream platform,

They may only apply when people buy directly from the fund manager - I think most fund managers now do not accept individual customers as the costs of customer support would be too high.

olbas_oil

I think the KID is correct and there is no exit charge. Somehow the XO warning window is picking up the wrong data and suggesting I may pay £500 exit + £5 ongoing, when it should be just £5 (if I sold after 1 year). I know it's just an illustration but it seems to be out by  10,000%

My issue is that the 'illustration' is  grossly misleading, yet X-O seemed to simply shrug it off with no apology or intention to investigate and remove whatever bug is creating it. Do they have to provide 'illustrations' as well as the KIDs? If they do, are they not obliged to try to make them accurate?

dunstonh

Some of the DIY platfforms do not use real fund data in their illustrations but generic examples.  I dont know if the is the case here but it could be.

EthicsGradient

The KID says there is no exit charge for a secondary market participant - which we all are, buying and selling shares in the ETF on a stock market. 5% is a theoretical maximum charge for the "Authorized Participants".

See, from many moons ago, https://forums.moneysavingexpert.com/discussion/comment/64748650/#Comment_64748650

You might think that it would be more reassuring if x-o could give a Cost Disclosure Document that is applicable to their real clients.