Question on clean charges

talexuser

I'm with Cavendish at the moment which charges 0.05% on clean funds. I set up a Cash manager account to pay their charges to keep as much in the isa as possible rather than lose more units than necessary every month.

Still have some bundled funds because the charges are slightly less with the Cavendish 0.5% rebate than the clean version till 2016 if nothing changes in the meantime.

I had assumed (and thought I'd read it in the terms) that the 0.05% applied ONLY to the clean funds since they were still getting their cut separately from the higher charged bundled funds, but working out the figures from the first two months it appears I'm charged the 0.05% on the total value including the value of the bundled funds.

Before I email them, is that normal, or is it a double charge on the bundled? Presumably it's only normal if Cavendish no longer get their cut from Fidelity on the bundled funds?

masonic

I'd assume that they are rebating 100% of the commission as they now have to do because of the RDR and so the 0.05% will apply to everything.

talexuser

Thanks, that does make sense.

According to this diagram at the bottom
http://www.cavendishonline.co.uk/investments/our-service/
The bundled rebated 0.5% and they got their 0.05% from the higher charge AMC.

So now you still get the 0.5 rebate but are 0.05% worse off because have to pay that directly on top because already paying the original higher AMC?

masonic

talexuser wrote: »

So now you still get the 0.5 rebate but are 0.05% worse off because have to pay that directly on top because already paying the original higher AMC?

No, they should now be rebating 0.75% using that example (1.5% minus 0.75%, which goes to the fund manager), then they charge the 0.2% platform fee and 0.05% "broker" fee, leaving the same 0.5% as before.

Your_Hero

They charge you 0.25% combined service fee for both clean and dirty funds.

talexuser

masonic wrote: »

No, they should now be rebating 0.75% using that example (1.5% minus 0.75%, which goes to the fund manager), then they charge the 0.2% platform fee and 0.05% "broker" fee, leaving the same 0.5% as before.

Thanks, at least my calcs over which of the clean or bundled is cheaper was ok on that basis. For 90% of my funds it worked out precisely the same charges overall.

jimjames

Your_Hero wrote: »

They charge you 0.25% combined service fee for both clean and dirty funds.

Depends if op is on cofunds or fidelity. Cofunds still has no service fee for trackers and takes from.commission on bundled.

Your_Hero

jimjames wrote: »

Depends if op is on cofunds or fidelity. Cofunds still has no service fee for trackers and takes from.commission on bundled.

I was referring to the link OP posted for Fundsnetwork (fidelity).