Cavendish, Fundsnetwork and RDR

oldfella

Cavendish have mailed me to say that Fundsnetwork can do a bulk conversion of all my funds to clean classes in January.

For the majority of my funds the clean charges are the same or less than existing charges so there will be a net gain. As I understand it after the switch the existing 0.5% annual rebate will stop and in future be paid by lower charges.

So is there any reason not to go for it ?

westy22

No reason why not - just make sure that you check that none of your holdings have higher 'clean' charges as you have to convert all funds in your account and you can't pick and choose. Conversion is far easier than switching individual funds to clean versions.

I have several funds that do have higher 'clean' charges - mostly HSBC trackers, so I will not be converting until I'm forced to in late 2015.

dunstonh

So is there any reason not to go for it ?

If you have worked out that there is no cost to you then do it. However, some funds have rebates which give a lower net effective charge than their clean version. So, it is important to check each one and not assume they will be the same/better

Linton

One reason to go for it: I believe that any fund sold now must be clean. So if you dont convert and want to buy extra units in one of your existing funds you will end up with holdings in two different classes, which is an unnecessary hassle.

oldfella

have checked charges and the only increase is Fidelity European. I have a substantial holding in IP High Income, and Income, both of which have a useful reduction. Most of the rest are no change.

jimjames

I'm holding off until 2016 on my holdings of HSBC trackers.

When the AMC is 0.25% with no platform fee it will only increase the costs once converted. For most managed funds it makes very little difference but some trackers will be much cheaper on the old model.

sterlingstash

Aren't a lot of trackers now much cheaper than the HSBC ones? Eg Fidelity's own and the Vanguard trackers they now do. Although the HSBC clean funds are slightly more expensive, I got the impression they were looking a bit on the expensive side - even with rebate.

I'd be interested in your views. I've just started investing in Fidelity trackers but not yet got round to switching my old HSBC holdings.

mike88

I'm doing mine now. The funds have to be converted at some point so I'm happy to go ahead now.

talexuser

oldfella wrote: »

I have a substantial holding in IP High Income, and Income, both of which have a useful reduction.

Just to confirm get the Y class, which is slightly cheaper than the normal.

I switched all my funds which were same charge some time ago since it made rebalancing easier.

I wanted to increase my allocation in Hambro Income which is doing reasonably well so bought the Y class while keeping the existing B class because it is over 0.1% cheaper last time I looked. So waiting till the last minute to convert my 2 remaining (cheaper) bundled class funds (the other is MG Optimal).

TrustyOven

sterlingstash wrote: »

Although the HSBC clean funds are slightly more expensive, I got the impression they were looking a bit on the expensive side - even with rebate.

I've got one HSBC tracker. How do I find out if it's in the clean post-RDR category?

Name = HSBC UK Gilt Index Class C - Acc
ISIN = GB00B80QG383

Some googling suggest the C class means clean, so I guess I don't have to do anything?

Thanks!

Linton

TrustyOven wrote: »

I've got one HSBC tracker. How do I find out if it's in the clean post-RDR category?

Name = HSBC UK Gilt Index Class C - Acc
ISIN = GB00B80QG383

Some googling suggest the C class means clean, so I guess I don't have to do anything?

Thanks!

Look the fund up on http://www.trustnet.co.uk. It will say which classes are categorised as clean. There may well be a number of different ones with different charges.