Quick funds question

r192

Hi,

i am using halifax for share dealing purposes and have baught numerous shares,

but i am going to buy my first fund first state asia pacific leaders but when i go to buy the fund on the dealing pages i get 4 different options , im assuming the slight variation in names is something simple but i just want to double check

I am looking to hold the class of fund that re invests all dividends

the 4 options i have to select from are


First state Asia pacific leaders A DIS
First state Asia pacific leaders B INC
First state Asia pacific leaders B NAV INC
First state Asia pacific leaders CLS A ACC NAV

the fund will be held in a stocks and shares isa and top up regularly in conuction with my others shares i currently invest in

Thanks

can someone just clarify the difference for me please

G_M

watch out for the forthcoming market crash in China...

Totton

Hi,
I expect it will be the First state Asia pacific leaders CLS A ACC NAV for accumulation, if you can check the ISIN number it should be GB0033874214 according to Morningstar @ http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F0GBR04H7Y

barak

r192 wrote: »

Hi,

i am using halifax for share dealing purposes and have baught numerous shares,

but i am going to buy my first fund first state asia pacific leaders but when i go to buy the fund on the dealing pages i get 4 different options , im assuming the slight variation in names is something simple but i just want to double check

I am looking to hold the class of fund that re invests all dividends

the 4 options i have to select from are

First state Asia pacific leaders A DIS
First state Asia pacific leaders B INC
First state Asia pacific leaders B NAV INC
First state Asia pacific leaders CLS A ACC NAV

the fund will be held in a stocks and shares isa and top up regularly in conjuction with my others shares i currently invest in

Thanks

can someone just clarify the difference for me please

In my experience Halifax/IWeb are hopelessly out of date with their fund availablility.

According to FE Trustnet the available clean versions of this fund are:
FIRST STATE ASIA PACIFIC LEADERS B GBP INC INC 151.22 (p) 18-Jul-2014 0.81 0.91% HUA8 B57S0V2
FIRST STATE ASIA PACIFIC LEADERS B EUR ACC ACC 155.88 (EUX) 18-Jul-2014 0.83 0.89% JOH8 B2PDRX9
FIRST STATE ASIA PACIFIC LEADERS B GBP INC EUR INC 141.55 (EUX) 23-Nov-2010 1.03 0.91% JXJ6
FIRST STATE ASIA PACIFIC LEADERS B EUR INC INC 117.63 (EUX) 18-Jul-2014 0.84 0.89% K5FT
FIRST STATE ASIA PACIFIC LEADERS B GBP ACC ACC 456.61 (p) 18-Jul-2014 0.83 0.89% QI53 3387476

Of these, the last one "B GBP ACC" would be the one you are after - i.e. GBP [sterling] Accumulation Units, but you may have to nag Halifax to make it available. :-(

http://www.trustnet.com/Investments/Perf.aspx?ctr=QS&univ=O&Pf_Manager=CFST

bowlhead99

r192 wrote: »

can someone just clarify the difference for me please

To clarify further:

1) You are looking for 'Accumulation' class of shares or units rather than a 'distribution' or 'income' class. So look for Acc instead of Dist or Inc.

2) There are also different currency classes available and if you get the choice, a GBP one is less hassle than a EUR or USD because otherwise your provider might impose an exchange rate fee on you, making it a little more expensive.

However, the most important is:
3) The fund is available in 2 classes, A and B. The A class was originally designed for retail customers like you and me, while the B class was originally designed for big institutions and has lower annual management fees/ongoing charges because it is priced more 'cleanly' as Barak says. If your provider offers a B class, you should take it - it's half a percent cheaper per year than the A class. If your provider doesn't offer the B class and you really want this fund, might be better to shop around and use a different platform.

Point 3, i.e. choosing B over A, should probably take preference over the other two points. Even if that means picking an income version and receiving dividends to reinvest, it's absolutely no problem because you've said you are topping up regularly in conjunction with other things you're buying. So there will always be a little bit of cash hanging around to reinvest, and it doesn't really matter. Also if your account is not an ISA or SIPP and at some point you ever have to calculate taxes, that's easier with an Inc version than an Acc one anyway.

Looking at the Halifax website (http://www.halifaxmarketwatch.co.uk/funds) and searching for the fund name First State Asia Pacific Leaders, one of the options that pops up is simply called First State Asia Pacific Leaders B, but doesn't say inc or acc. When I click on it, its ISIN is GB0033874768 which is the B ACC GBP version that Barak highlighted as the one to buy. Going that route I get a Deal Now button so it sounds like they do carry it. I don't have a Halifax account so haven't actually tried clicking Deal Now...

masonic

I thought platforms were no longer permitted to sell the A class units to customers unless they have an existing holding or regular investment plan.

barak

bowlhead99 wrote: »

.....Looking at the Halifax website (http://www.halifaxmarketwatch.co.uk/funds) and searching for the fund name First State Asia Pacific Leaders, one of the options that pops up is simply called First State Asia Pacific Leaders B, but doesn't say inc or acc. When I click on it, its ISIN is GB0033874768 which is the B ACC GBP version that Barak highlighted as the one to buy. Going that route I get a Deal Now button so it sounds like they do carry it. I don't have a Halifax account so haven't actually tried clicking Deal Now...

That's right! I do have a Halifax account and OP was slightly incorrect as the third of four options that appear [today, at least!] is "B NAV ACC" [rather than "B NAV INC"] and that is the version of the fund you and I have described with a Friday closing price of GBP4.5661

Furthermore Halifax do let you choose it as an option which recently was not true of all the fund versions that appeared!