SalvorHardin wrote:TheMotorcycleBoy wrote:I'm kinda torn now between either opening an MSFT or PCT position. I like the idea of PCT because it seriously diversifies my US/tech, but I hate the 1.75% fee. (I briefly glanced at ATT Allianz tech, but that's even worse at 2.0%).
The good news is that Polar Capital Technology's annual management fee isn't 1.75%. It's a bit less than 1% (more on this later). The high fee is due to a performance-related fee of 15% of any outperformance against its benchmark (Dow Jones World Technology Index). So if the managers are getting more than 1% it's because the shareholders are doing well as they will have beaten the index by a reasonable amount (or a lot as in 2017-18).
In 2017-18 PCT's management and performance fee was 1.76% (source p 43 annual report). The annual management fee was 1% on the first £800 million of assets, then 0.85% on anything above. The excellent performance meant that the mentioned performance fee pushed the overall fees to 1.76%.
PCT's fee structure was changed on 15th April 2019 (RNS linked below). The annual management fee is now 1% of the first £800 million of assets, then 0.85% on the next £800 million, 0.8% on the next £400 million and 0.7% on everything above £2,000 million. The performance fee is reduced to 10% of any outperformance against its benchmark (Dow Jones World Technology Index)
https://www.investegate.co.uk/polar-cap ... 00051139W/
I don't have any opinion about Microsoft (it's not in my circle of competence, to quote Warren Buffett), but IMHO there is a lot to be said for buying shares in a foreign company if only because it expands your investment horizons. The third share I ever bought (back in 1985) was American and I've never looked back. IMHO investors who stick to their national stock exchange are restricting their opportunities, particularly for diversification.
Thanks for your indirect suggestion for me to look at PCT. I have and I've opened an initial holding there (about 2% of our foli).
We've also both lodged w8ben forms with iWeb so I'll start to research the odd US stock from time to time. I'd like to find a good marijuana type venture at some stage.
Matt