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Clean share class
oldwiring
Posts: 2,452 Forumite
This is a term I had not met before reading Saturday's Daily Telegraph "Your Money" pages. The term was in an advert by Elson Associates, and claimed that annual fees of a fund could be reduced by transferring to clean shares, or that's how I understood it.
The idea is that effectivley one's holdings' growth is enhanced
Am I guessing right by thinking, that such an advantage is only available if the fund is held through an intermediary, on a platform?
The idea is that effectivley one's holdings' growth is enhanced
Am I guessing right by thinking, that such an advantage is only available if the fund is held through an intermediary, on a platform?
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Comments
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In the past the fund charges included extras such as commission for the salesman and a payment for the broker/platform even if you bought directly from the fund manager. This was stopped last year and now payment for the extras is charged explicitly. For a while both clean (without the extra charges) and dirty funds existed in parallel. You cant buy dirty funds now and any still held from before the change must be converted to clean ones by the broker by April this year. So for anyone investing now it's a non-issue.0
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The term was in an advert by Elson Associates, and claimed that annual fees of a fund could be reduced by transferring to clean shares, or that's how I understood it.
Not quite as simple as that.
platforms are auto moving people to clean share classes (if they havent already) unless there is a good reason to stay on the bundled share class (and sometimes there is). The have to complete the sunset clause before April 2016.
In some cases the bundled share class with rebates is cheaper than a clean share class without rebates.
Funds held direct with fund house are not affected by the sunset clause.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
So the ISAs we bought several years back and hold direct with the fund (e.g. Invesco Perp) are not convertible by us ourselves. Correct?0
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So the ISAs we bought several years back and hold direct with the fund (e.g. Invesco Perp) are not convertible by us ourselves. Correct?
Correct.
The platform review/sunset clause does not apply to them as there are no hidden payments/commission being paid to third parties.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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