Different fund/product fees by platform

Hi

i see the same product whether its a fund or robo investment with different management charges (same share class) whether held on firms own platform or externally.  Is this allowed can a firm charge a lower fee if you hold directly with them?  Im not talking of platform or custody fees, but management charges

thanks

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  • ColdIron
    ColdIron Posts: 8,674
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    I have never seen different OCFs for the same fund class (A, B, X etc)
    Can you give us an example?
  • dunstonh
    dunstonh Posts: 115,695
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    edited 29 November 2023 at 10:29AM
    i see the same product whether its a fund or robo investment with different management charges (same share class) whether held on firms own platform or externally.
    Can you give us further information as that doesn't seem likely.   The OCF would be the same on all platforms using the same share class, as would the TC & IC.

    However, the data snapshots for the charges can lead to disclosures showing a different charge if the fund has recently changed.    OCFs tend to be relatively stable but TC can change monthly.      So, if the provider/platform is using a different snapshot date, then the charges disclosure could vary.   However, the actual charge you pay would be the same.  Its just their disclosure that is different.  That is extremely common.

      Is this allowed can a firm charge a lower fee if you hold directly with them? 
    it is allowed but many will charge a higher fee as they use a different share class.  Very few use a cheaper share class.

    Im not talking of platform or custody fees, but management charges
    What charges?  AMC, TER, OCF, OCF ex Ante, TC, IC or what?


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Do you mean, to cite an example I am familiar with, how Fidelity offer the Fidelity Index World fund with a slight discount via their platform?
  • dunstonh
    dunstonh Posts: 115,695
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    NithyaH said:
    Do you mean, to cite an example I am familiar with, how Fidelity offer the Fidelity Index World fund with a slight discount via their platform?
    They do but it is a different share class and the OP claims it is the same share class.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • NithyaH
    NithyaH Posts: 12
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    dunstonh said:
    NithyaH said:
    Do you mean, to cite an example I am familiar with, how Fidelity offer the Fidelity Index World fund with a slight discount via their platform?
    They do but it is a different share class and the OP claims it is the same share class.
    Are you sure?  I think Fidelity offer a negotiated discount on the P Acc fund which is also offered on other platforms.
  • Qyburn
    Qyburn Posts: 2,077
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    NithyaH said:Are you sure?  I think Fidelity offer a negotiated discount on the P Acc fund which is also offered on other platforms.
    Both Fidelity and HL show the charge as 0.12%
  • dunstonh
    dunstonh Posts: 115,695
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    There can be a difference on the Fidelity restricted workplace pension product.  However, that is usually more expensive than then whole of market version.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • NithyaH
    NithyaH Posts: 12
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    edited 12 December 2023 at 6:17PM
    Qyburn said:
    NithyaH said:Are you sure?  I think Fidelity offer a negotiated discount on the P Acc fund which is also offered on other platforms.
    Both Fidelity and HL show the charge as 0.12%
    Yes, but Fidelity then apply a 0.01% discount so the charge is actually 0.11% with Fidelity.
  • dunstonh
    dunstonh Posts: 115,695
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    NithyaH said:
    Qyburn said:
    NithyaH said:Are you sure?  I think Fidelity offer a negotiated discount on the P Acc fund which is also offered on other platforms.
    Both Fidelity and HL show the charge as 0.12%
    Yes, but Fidelity then apply a 0.01% discount so the charge is actually 0.11% with Fidelity.
    Are you sure that isnt just a snapshot date difference in the reporting?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • noclaf
    noclaf Posts: 890
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    Fidelity P World ACC has a 'Negotiated fund manager discount (%)' as copied from the fund specs of 0.02 on the Fidelity platform.....it's partly the reason I invested in this fund within my sons JISA on Fidelity.
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