Switching to cleaner clases

hyposmurf

Is it worth me switching to cleaner class versions of some of my funds and investment trusts, housed within a ISA?I'm probably not getting a completely clear picture,as I'm comparing TER & OCF.The first figue shows the new charge and the next one the old.

BLACKROCK NORTH AMERICAN EQUITY TRACKER Acc 0.17%(OCF) 0.51%(TER)

BARING GERMAN GROWTH GBP 0.82%(OCF) 1.58%(TER)

JPM EMERGING MARKETS 1.15% (OCF) 1.8%(TER)

JPM NATURAL RESOURCES 0.93%(OCF) 1.6%(TER)

Could I transfer the to the new classes rather than sell and re-buy?Are Besitinvest my current platform going to automatically swap them to the cleaner class at some point?

Your_Hero

They have to be sold and re-bought. You have to manually do this yourself.

The cleaner share classes are lower in cost because they've stripped out all other hidden costs. But this is not always the case because very often the platforms received a rebate from the fund managers and can still be better value than the newer share classes or at least about equal.

In general I would still switch to use the clean share classes.

hyposmurf

Do I need to also take into account any trial rebate I currently get on the funds and take this off the TER for comparison?

Your_Hero

hyposmurf wrote: »

Do I need to also take into account any trial rebate I currently get on the funds and take this off the TER for comparison?

Yes that's right, you need to account for the fund rebates if you want to make a comparison.

It's not unheard of where the "dirty" share classes of some funds are actually cheaper than their clean counterparts.

pvt

hyposmurf,

Dunno about Bestinvest, but my provider, Barclays Stockbrokers, are slowly working through my portfolio and switching existing holdings to the equivalent cleaner classes.

I don't know if this is a requirement under the whole RDR thing, that they do this.

Might be worth a simple call or email to Bestinvest to ask if they plan to do this for you.

bigadaj

pvt wrote: »

hyposmurf,

Dunno about Bestinvest, but my provider, Barclays Stockbrokers, are slowly working through my portfolio and switching existing holdings to the equivalent cleaner classes.

I don't know if this is a requirement under the whole RDR thing, that they do this.

Might be worth a simple call or email to Bestinvest to ask if they plan to do this for you.

Believe it's got to be done but only by 2016.

ColdIron

HL are converting to clean or unbundled now if you requested it. About half of mine gone through in less than a week so far which isn't bad. I'm also pleased to see they have retained most previous details which wouldn't have happened if you switched them yourself

talexuser

I am with Cavendish with their 0.5% rebate on bundled versions. Working out the TERs for each of my funds, most ended up exactly the same charges under their 0.25% clean version compared with dirty with 0.5% rebates - no cost saving without switching to a fixed fee intermediary. The exception was M&G Optimal income which is 0.91% in the bundled with rebate against 1.16% in the clean class!