Do I need to move from Cavendish to Iweb?

pete74

Hi,
I have a £26k First State Emerging Markets Global Leaders in an ISA with Cavendish who at the time (few years ago) were the cheapest thanks to commission rebate. Now the rules are changing about trail commission, should I keep the fund there or would it be better (is it even possible?) to move it to iWeb where I have just opened this years ISA due to their fee structure?

Any help gratefully received!

oldfella

at £26K Cavendish are marginally cheaper

ColdIron

You could plug the numbers into the link below, a quick look does seem to show iWeb being the cheapest but I can't promise I was 100% diligent

http://www.comparefundplatforms.com/

pete74

Thanks ColdIron, that's a great site. It came out that iWeb could be £2k cheaper over 10 years which sounds like a reason for a switch. My confusion comes from the commission rebate as the fund becomes 'clean'. Will the TER be exactly the same regardless of who hosts the fund? The above link didn't ask which fund was being hosted so does that mean the rules are now the same across the board?

ColdIron

That site only compares the platform charges not the fund charges

Most funds will come in a variety of classes, A, B, C, I, X etc each with different charging structures and there is no consistency across funds. Also, different platforms will only offer 1 or maybe 2 classes so you need to check what is available but as a general rule you want to opt for the clean/unbundled offering where there is no commission. For the same class of fund (e.g. Acme Co Equity Income class Y) the TER or OCF should be the same regardless of which platform provides it

Since RDR clean classes should be available for most funds, although if you had the old bundled/dirty class you can still hold and buy it until (late) December 2016 I think

One thing to watch out for with First State Global Emerging Market Leaders is - to limit the fund's size they have imposed a 4% initial charge. Some platforms impose this, others don't so do check this before you make your decision