Lack of action re clean funds.

ANGLICANPAT

Circumstances have meant I havent done anything about changing from dirty to clean funds. We have some via a couple of advisers, a few via brokers , and a few in funds network via Fidelity . I was about to set about investigating changing, but Ive now had a letter from Fidelity which seems to indicate they will be automatically changing mine to clean ones. Is it likely then that other funds Im in will automatically change too without me doing anything? Are there disadvantages to accepting this ? Are there financial considerations to not doing it myself?Thanks .

Linton

ANGLICANPAT wrote: »

Circumstances have meant I havent done anything about changing from dirty to clean funds. We have some via a couple of advisers, a few via brokers , and a few in funds network via Fidelity . I was about to set about investigating changing, but Ive now had a letter from Fidelity which seems to indicate they will be automatically changing mine to clean ones. Is it likely then that other funds Im in will automatically change too without me doing anything? Are there disadvantages to accepting this ? Are there financial considerations to not doing it myself?Thanks .

The brokers do the changing for free, you shouldnt need do antything.

ANGLICANPAT

Thank you Linton for the speedy reply! What will happen to the funds done through advisors though ( 2 different ones) . I approached one to ask, and he has said it would be 4% to review it to turn into a clean fund. Thats why I was wondering if the actual fund managers change them over themselves which would save me a lot of money?

BrockStoker

Linton wrote: »

The brokers do the changing for free, you shouldnt need do antything.

I'm not sure if that's always true. At least on my platform (which might well be the exception to the rule) I'm still stuck with some dirty funds, and where clean fund classes are available to me, I have to sell the dirty fund then buy the clean version manually (which incurs charges) if I want the clean share class.

So it might be worth checking what the situation is before assuming that everything will be taken care of.

ANGLICANPAT

ok , thanks BS I suppose it wont hurt to double check by ringing each fund direct . I dont have to go via the brokers/ IFAs I presume? Would yours just remain in dirty funds forever if you did nothing then? What sort of average charges would you expect to change them ?

dunstonh

If the adviser doesnt change the funds to clean share then they will auto change when the platform takes action over the sunset clause.

ANGLICANPAT

Thank you Dunstonh

BrockStoker

ANGLICANPAT wrote: »

Would yours just remain in dirty funds forever if you did nothing then?

I'm not sure to be honest. I guess there is a date by which they have to switch, but I don't know when that is.

ANGLICANPAT wrote: »

What sort of average charges would you expect to change them ?

Well my platform (Royal London 360) is a bit of and odd one and charges £60 for each buy/sell, but yours might switch for free.

I also hold a couple of funds directly with Marlborough Fund Managers, and they switch for free (I had to ask for a form) although I'm not sure if the minimum investment amount still applies - from their literature, as far as I can see (for the funds that I hold at least - Special Situations and Multi-cap Income), the clean share classes all have a minimum investment of 50K but for dirty it's only around 5K.

talexuser

I seem to remember that everything should be changed to clean next April. I still have 2 funds that are marginally cheaper dirty with rebate so have left them till the last moment to be transferred over automatically.

dunstonh

The sunset clause applies to platforms. Not currently to funds held with the fund house.

jimjames

dunstonh wrote: »

The sunset clause applies to platforms. Not currently to funds held with the fund house.

Is that April next year? I still have funds in both dirty and clean classes, for some investments I have both at the moment which surprised me.