Fund Provider
What is a fund provider?
A fund provider is the company that creates and manages a fund. They decide what the fund invests in, handle all the buying and selling, and charge a yearly fee for doing so.
What are some examples of fund providers?
Vanguard, BlackRock (iShares), Legal & General, Fidelity, and HSBC are all fund providers. Each offers a range of funds covering different markets and investment styles.
How does a fund provider make money?
By charging an annual fee on every fund they run. This fee is called the OCF (Ongoing Charges Figure). If a fund has an OCF of 0.15%, the provider takes £1.50 a year for every £1,000 invested.
Is a fund provider the same as an investment platform?
No. The fund provider runs the fund. The investment platform is where you hold your investments. You might buy a Vanguard fund through Hargreaves Lansdown. Vanguard is the fund provider. Hargreaves Lansdown is the platform.
Key points about fund providers
- Creates and runs funds. Decides what the fund invests in
- Charges the OCF. The fund’s yearly fee
- Different from a platform. Platforms hold your investments, providers run the funds