Making sense of RDR

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
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okydokyokydoky Forumite
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edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
So, I have OEIC's with Cavendish where AMC's were being refunded. Have read their blurb several times but struggling to understand it, is it just me?
Will I be better or worse off under the new regime? The ISA's I hold were bought years ago and I just leave them with divs reinvested, value around £60K.
Anybody know??

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  • dunstonhdunstonh Forumite
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    Will I be better or worse off under the new regime?

    If you hold index trackers or direct investments then you will almost certainly be worse off. If you hold managed funds then it will be largely cost neutral or cheaper.

    The DIY side is way behind the IFA side on platforms. So, you can look to the IFA platforms to get an indication of what happened there to see what is coming to the DIY side.
    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.
  • VortigernVortigern Forumite
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    okydoky wrote: »
    So, I have OEIC's with Cavendish where AMC's were being refunded.

    Cavendish will continue to refund their share of the AMC by buying more units in your largest fund - even if it's bundled.
    Will I be better or worse off under the new regime?
    As dunstonh says, it depends on the funds you hold. You need to compare the AMC minus rebate for the bundled fund, with the AMC plus 0.25% for the equivalent clean fund.
    The ISA's I hold were bought years ago and I just leave them with divs reinvested
    Dividends will continue to be re-invested in the same fund - even if bundled.

    This should continue till April 2016, unless Fidelity force a conversion before then.
  • jimjamesjimjames Forumite
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    okydoky wrote: »
    So, I have OEIC's with Cavendish where AMC's were being refunded. Have read their blurb several times but struggling to understand it, is it just me?
    Will I be better or worse off under the new regime? The ISA's I hold were bought years ago and I just leave them with divs reinvested, value around £60K.
    Anybody know??

    Are you with Cofunds or Fidelity? If bought some years ago then it may be Cofunds and the situation could be different.

    Mine is Cofunds and existing investments will carry on as they are until 2016
    Remember the saying: if it looks too good to be true it almost certainly is.
  • okydokyokydoky Forumite
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    Although the investments were made directly with M and G many years ago, they were transferred to FundsNetwork, part of Fidelity earlier this year. The correspondence actually shows the adviser as Cavendish Online Ltd.
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