Growth managed fund fees

General
1

Hi there

I have a question around fees for the growth managed fund. I gather there is a 0.25% annual management fee, but what else can expect to pay?

Any help would be great

Thanks

2

Hi @Danipaolo,

There are three different type of costs and charges. I’ve tried to summaries them below - they’re also listed on the Managed tab on InvestEngine’s cost page - https://investengine.com/costs/

  • InvestEngine’s Management fee - 0.25% Annual management fee on the managed portfolios
  • Fund Expense Ratio - Each of the ETFs in the portfolio also has charges and costs. These are shown as a Total Expense Ratio (TER %). These vary by fund but average ~0.16% for InvestEngine’s Growth managed portfolio. (You won’t see this charge as it deduced directly from the fund)
  • Transaction cost - The cost associated with buying each ETF. This is the market spread (difference between the buy & the sell price of the fund in the market). Again this varies by ETF but will average ~0.07% annually

You will only see InvestEngine’s Management fee deduced from your account but both the fund charges & the transaction costs will both reduce your portfolio’s performance. These charge will also vary over time, so the figures above will the historic charges.

Hope that makes sense

3

Hi @tom.winterton

Thanks for your response. Does this mean that when you consider the annual managed fee plus the TER of each ETF, the combined fee will be around 3.29%?

This seems pretty high, but perhaps i’ve miscalculated.

For e.g. the Growth 10 portfolio.

Thanks

4

Hi @Danipaolo - No, you only pay the TER% on the ÂŁ assets in each ETF.

So the sum of you costs and charges would be more like ~0.48% (0.25% management fee, 0.16% average TER % + 0.07% average Transaction costs).

These charges will vary slightly year to year and with different portfolios, TER % & Transaction costs are external costs which InvestEngine doesn’t set. Obviously do your own research but I think I can say ETFs are typically regarded as one of the lowest costs ways of Investing.

5

Thanks @tom.winterton
That seems more sensible, thanks for clarifying. I’m about to begin investing in either one of the managed funds or a DIY portfolio.

Either way your overall fees are highly competitive.

Thank again

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