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  • FIRST POST
    • Theta101
    • By Theta101 7th Feb 18, 1:29 PM
    • 140Posts
    • 28Thanks
    Theta101
    Investment Trust Costs
    • #1
    • 7th Feb 18, 1:29 PM
    Investment Trust Costs 7th Feb 18 at 1:29 PM
    According to the Hargreaves Lansdown website the 'Ongoing charge' of EDIN.L is 0.60%.
    How is this charge collected?

    If I buy the EDIN.L shares do I have to pay additional annual charges?
    Or do the charges come out of the Dividends?

    TIA
Page 1
    • TCA
    • By TCA 7th Feb 18, 1:40 PM
    • 1,354 Posts
    • 801 Thanks
    TCA
    • #2
    • 7th Feb 18, 1:40 PM
    • #2
    • 7th Feb 18, 1:40 PM
    The management fee of 0.6% is paid by the trust as an expense and so you don't pay anything directly in this regard. Dividends are paid after this is deducted. So in terms of operating your HL account, you just have to concern yourself with their platform fees, although there aren't any if you just hold shares outside of an ISA.
    • Linton
    • By Linton 7th Feb 18, 1:43 PM
    • 9,382 Posts
    • 9,513 Thanks
    Linton
    • #3
    • 7th Feb 18, 1:43 PM
    • #3
    • 7th Feb 18, 1:43 PM
    As with any other fund the OCF charges are taken directly from the investment trust's assets so it reduces the IT's NAV a bit and hence the share price would tend to be lower than if no charges were taken.

    Note that the published performance, dividend etc are after fund charges, you never see the raw data.
    • JohnRo
    • By JohnRo 7th Feb 18, 1:44 PM
    • 2,599 Posts
    • 2,414 Thanks
    JohnRo
    • #4
    • 7th Feb 18, 1:44 PM
    • #4
    • 7th Feb 18, 1:44 PM
    https://www.invescoperpetual.co.uk/uk/products/the-edinburgh-investment-trust-plc

    AIFMD

    70% of the annual management charge and
    finance cost will be deducted from the investment
    trust's capital, which may boost income but
    constrain or erode long-term capital growth.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • Theta101
    • By Theta101 7th Feb 18, 2:00 PM
    • 140 Posts
    • 28 Thanks
    Theta101
    • #5
    • 7th Feb 18, 2:00 PM
    • #5
    • 7th Feb 18, 2:00 PM
    Thanks for the information

    JohnRo, I have to admit I am studying your "Monthly income" thread and so far I'm very impressed

    I have OEIC funds at the moment but I am considering dipping my toe into some IT's (may not be EDIN.L).
    • JohnRo
    • By JohnRo 7th Feb 18, 2:12 PM
    • 2,599 Posts
    • 2,414 Thanks
    JohnRo
    • #6
    • 7th Feb 18, 2:12 PM
    • #6
    • 7th Feb 18, 2:12 PM
    I'll continue to hold EDIN, it's had a bad run of late, in valuation terms, but the widened discount and uplift in relative yield should help to compensate going forward if I can get a rebalance in before the numbers change.

    What I want to avoid as much as possible is chopping and changing, chasing after the latest table topping sensations like the proverbial bluebottle. I'll simply rebalance EDIN like everything else, as and when the plan dictates.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
    • bowlhead99
    • By bowlhead99 7th Feb 18, 2:27 PM
    • 7,830 Posts
    • 14,300 Thanks
    bowlhead99
    • #7
    • 7th Feb 18, 2:27 PM
    • #7
    • 7th Feb 18, 2:27 PM
    What I want to avoid as much as possible is chopping and changing, chasing after the latest table topping sensations like the proverbial bluebottle.
    Originally posted by JohnRo
    So what you're saying is that bluebottles can't be relied upon for stock tips? Dammit, time for another strategy I guess.
    • JohnRo
    • By JohnRo 7th Feb 18, 2:37 PM
    • 2,599 Posts
    • 2,414 Thanks
    JohnRo
    • #8
    • 7th Feb 18, 2:37 PM
    • #8
    • 7th Feb 18, 2:37 PM
    There's always a monkey with a pin as backup, they perform better than bluebottles, and most stock pickers, allegedly.
    'We don't need to be smarter than the rest; we need to be more disciplined than the rest.' - WB
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