Investment Trust ongoing charges

Hi,
I’m sure this question has been asked already but I couldn’t find the thread that provides the answer.

I’m wondering why some IT’s have higher ongoing charges on Freetrade versus the ongoing charges advertised by the Asset Manager’s website.

For example SMT costs 0.56% on FT but I can see 0.34% quoted on the BG website.

I’m very new to this - can someone please explain where I’m going wrong? Thanks!

Good question!
When considering an investment trust it’s always worth looking at the Key Information Document (KID)
In this document there will be a section on fees.
For Scottish Mortgage the Ongoing Costs are broken down as per:

  • Management Fee = 0.30%
  • Interest on borrowings/Gearing = 0.21%
  • Admin costs = 0.04%
  • Other incurred costs = 0.01%

As you can see this all adds up to 0.56%. One of the advantages of Investment Trusts is that they can gear so although this is costing 0.21% it could lead to increased investment returns. Therefore I personally don’t pay much attention to the gearing costs for this reason.
Investment Trusts will state on their website the Ongoing Charge based on these costs excluding gearing.

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I see, thanks so much for the explanation.

I was under the impression that you could access different underlying prices for trusts depending on the trading platform you were using. That was my original concern!

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