iWeb - Fund Initial Charges

StellaN

I am looking at various UK smaller companies funds on iWeb and noticed that they have initial charges on most funds, whereas most platforms waive totally the initial charges on funds. For instance, there is no initial charge for either of the following funds on HL but on iWeb the initial charges below are applicable.

Marlborough UK Micro Cap Growth - 1.00% initial charge
TB Amati UK smaller companies - 4.00% initial charge

So iWeb may be a cheap platform with a one-off £25 charge, but maybe not if you take these fund initial charges into consideration. I wonder why they have not negotiated no initial fees with the various fund houses?

talexuser

I don't have those particular funds but where they do have an initial charge for the funds I have it has never been taken (which I agree is confusing to have in the fund details). The easiest thing to do is just ring them up and ask to make sure.

masonic

In my experience, iWeb provide cost information directly from the provider, or general estimated figures, and doesn't separately disclose the actual figures that will apply to the transaction. It's quite frustrating really. My favourite:

"We don't have the exact transaction cost for this fund, so have used an industry average of 0.5%."

londoninvestor

Ironically, we've mentioned on a couple of threads the opposite problem - i.e. that iWeb (and Halifax and Lloyds) say they won't let you buy a fund if its KIID mentions an initial charge, even when the provider discounts it to zero. Lindsell Train Global Equity is a "favourite" example of this issue.

So it's surprising they even offer these! Would be very interesting to hear what you find out here.

MK62

The KIID linked on iWeb's website to TB Amati UK Smaller Cos actually says "nil" entry charge - though the Marlborough fund does list 1% in it's KIID.


It's odd though - please update back here when you get to the bottom of this.
It would be a bit naughty if iWeb did stick a 4% initial charge on the Amati fund after supplying a KIID stating it's "nil" - though I suspect it's just slack QC on the website pages tbh.
If not the FCA may be interested.......

StellaN

I called iWeb this morning to ask about these initial fees and I must admit the person I spoke with didn't fill me with confidence. However, after putting me on hold he eventually did confirm there was no initial charge on either of these funds. I did point out that in the respective KIIDS on their website the Amati fund stated 0% initial charge but under there own charges it stated a 4% initial charge. Whereas, the Marlborough KIID stated a 1% initial charge which was the same as under their own charges.

As Masonic said:" iWeb provide cost information directly from the provider, or general estimated figures, and doesn't separately disclose the actual figures that will apply to the transaction. It's quite frustrating really".

I did ask him whether this could be reviewed because it is very confusing for buyers when it clearly states there is an initial charge for buying a particular fund. He agreed, but I don't know if they will remedy this.

JohnRo

StellaN wrote: »

He agreed, but I don't know if they will remedy this.

Don't hold your breath, they're a small outfit struggling to cope with an antiquated and restrictive backoffice system in a changing investment environment.

IanManc

JohnRo wrote: »

Don't hold your breath, they're a small outfit struggling to cope with an antiquated and restrictive backoffice system in a changing investment environment.

IWEB is a brand name of Halifax Sharedealing, one of the biggest brokerage operations in the country, and is serviced by the same staff and same call centre operators in the Halifax Sharedealing offices in Leeds.

JohnRo

For goodness sake, they're a small outfit. If they were Halifax they'd be called Halifax.

greenglide

Well on their web site it does say -

The IWeb Share Dealing Service is operated by Halifax Share Dealing Limited. Halifax Share Dealing Limited. Registered in England and Wales no. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Conduct Authority

This would indicate that the IT (at least) is Halifax even if the ultimate ownship isn't (haven't looked at companies House.

seacaitch

FCA Register for HSDL:

https://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000MfHYVAA3

...and expand the Trading/brand names node for HSDL's various trading names.