How we compare charges
Fund charges can eat away at performance and your returns, so it’s important to weigh up performance potential against the cost of investing in a particular fund.
If there are two funds offering the same performance potential, then charges become a greater consideration – especially when looking at passive funds.
The Wealth Shortlist now measures a fund’s ongoing charges against similar funds in the same sector.
Wealth Shortlist charge comparison
We break down each fund sector on our platform into funds with active and passive management.
We then order these sets of funds by their Ongoing Charges Figure (OCF) and score them.
There are five scores available: the lowest-charging get £, and the highest-charging get £££££.
As an example, we divide funds in the UK All Companies IA sector into active and passive groups. We then order the funds in each group by the net charge paid by HL clients. We then give a £ to the cheapest 20%, ££ to the next 20% and so on.
Other considerations:
A fund’s net OCF is compared – this is the charge after any discounts
The Wealth Shortlist groups funds by investment sector. Charges are compared by IA sector
Funds in the same sector with the same charge will get the same rating
Funds with the same charge will be rated the same. In sectors in which lots of funds have the same charge, each rating of £-£££££ won’t have the same number of funds
If a group contains fewer than five funds, we won’t apply a rating
Ratings are calculated for unbundled funds only. This is the version of a fund available for new investors
HL platform charges apply - view our charges.