Lindsell Train Global Equity - dirty fund?

dellboy102
dellboy102 Posts: 609 Forumite
First Post First Anniversary Combo Breaker
edited 6 September 2017 at 3:32PM in Savings & investments
Hi All

I joined iWeb and one of the funds I wanted to invest in was the Lindsell Train Global Equity, however they've advised its classed as a "dirty" fund due to hidden fees and advised no FCA approved platform would allow investment into it.

Anyone ran into issues like this before?

Comments

  • Malthusian
    Malthusian Posts: 10,931 Forumite
    First Anniversary First Post Name Dropper Photogenic
    Not sure what they're on about. Lindsell Train Global Equity has a "clean shareclass" D which is available on other platforms, and has the usual 0.75% annual charge.

    They may well have chosen not to offer Lindsell Train funds but that isn't the reason.

    There are plenty of FCA approved platforms that still allow investment in "dirty" funds. They usually rebate the portion of the charge that would have gone to the platform in the pre-2012 era. And some investors still have accounts that have old-style charging structures where you don't pay the platform directly, and the platform instead takes a cut of the management fee from the "dirty" shareclass. Both approaches are now outdated and non-U, but they aren't illegal.
  • dellboy102
    dellboy102 Posts: 609 Forumite
    First Post First Anniversary Combo Breaker
    Thanks Malthusian, on that link can you clarify which bit confirms the fund is clean? I can then show them the link and hopefully they can add it..

    Just found this thread from years ago with similar issues: http://forums.moneysavingexpert.com/showthread.php?t=5181872
  • dunstonh
    dunstonh Posts: 116,296 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    however they've advised its classed as a "dirty" fund due to hidden fees and advised no FCA approved platform would allow investment into it.

    They are wrong. There are many people still using the dirty version and a number of platforms support it.

    Just because they do not support it, does not mean others will be the same.

    I personally have plenty of pensions on our books using bundled funds as they are cheaper than the unbundled version.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dellboy102
    dellboy102 Posts: 609 Forumite
    First Post First Anniversary Combo Breaker
    ah so within this HL link http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/lindsell-train-global-equity-class-d-income

    So where it says "Unit type: Unbundled" that suggests its clean?
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Name Dropper First Post First Anniversary Post of the Month
    dellboy102 wrote: »
    Thanks Malthusian, on that link can you clarify which bit confirms the fund is clean? I can then show them the link and hopefully they can add it..

    Just found this thread from years ago with similar issues: http://forums.moneysavingexpert.com/showthread.php?t=5181872

    Per that thread the issue they had with it was that the prospectus allowed them to charge an entry charge (although they had not in practice ever done so) hence it was "dirty", full stop.

    I seem to remember from another thread, someone had enquired about why it wasn't available and weren't given that reason - instead the answer back from Halifax Sharedealing or IWeb was that it wasn't a UCITS compliant fund so they didn't offer it. It's true, LT Global Equity is a non-UCITS retail scheme (Nurs). There are other NURS that IWeb don't carry such as Blackrock Consensus. Actually maybe it was Blackrock the person was enquiring about and I just speculated that was the reason they didn't have LT - I can't quite recall...

    They also don't carry any PAIFs which isn't a complete deal-breaker given property is not usually a huge component of an overall portfolio but is still wasteful if you are moving to them to save platform fees and then end up with more tax leakage on part of your portfolio.

    It's certainly well worth looking at cheap fixed fee providers, as savings on a sizeable portfolio using funds can be hundreds of pounds a year versus percentage-charging platforms - I just haven't found one that does everything I want.
  • dunstonh
    dunstonh Posts: 116,296 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    dellboy102 wrote: »
    ah so within this HL link http://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/lindsell-train-global-equity-class-d-income

    So where it says "Unit type: Unbundled" that suggests its clean?

    Unbundled and bundled are the main names. Unbundled means all the costs of distribution, administration, retail, advice etc are "unbundled" and bundled means they are included.

    Clean/Dirty was common alternative that some used.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dellboy102
    dellboy102 Posts: 609 Forumite
    First Post First Anniversary Combo Breaker
    Thanks both, issue is I've opened the iWeb ISA account so if they don't offer it I'll have to leave this fund out and maybe look at it next year on a different platform as I do want it within the ISA wrapper.
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Name Dropper First Post First Anniversary Post of the Month
    If you want a fund for your portfolio that they can't give you, you don't have to leave the fund out, you just need to transfer to a provider that can give it to you. Or as you say, put next year's money into a different platform and buy it then; but that means you don't have any exposure to the fund you want at the amount you want for quite some time, and you have your ISA money split into two separate pots which can make re-balancing more of a pain.

    It just comes down to whether you think the returns profile from that "unavailable fund" together with the convenience of everything on one platform are, combined, going to be so materially better than the drag on your overall portfolio returns from using the "second choice fund" or the inconvenience of having multiple provider pots within the overall portfolio.
  • dellboy102
    dellboy102 Posts: 609 Forumite
    First Post First Anniversary Combo Breaker
    bowlhead99 wrote: »
    If you want a fund for your portfolio that they can't give you, you don't have to leave the fund out, you just need to transfer to a provider that can give it to you. Or as you say, put next year's money into a different platform and buy it then; but that means you don't have any exposure to the fund you want at the amount you want for quite some time, and you have your ISA money split into two separate pots which can make re-balancing more of a pain.

    It just comes down to whether you think the returns profile from that "unavailable fund" together with the convenience of everything on one platform are, combined, going to be so materially better than the drag on your overall portfolio returns from using the "second choice fund" or the inconvenience of having multiple provider pots within the overall portfolio.

    Agreed, I haven't given up quite yet, i'm in touch with iWeb support with a view of getting it added so lets see how far I get, if I still don't get anywhere will have to have a think and decide on a option as you have nicely summarized above :)
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.6K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards