Fundsmith direct or via broker?

RomfordNavy

Can someone tell me if there is any difference between investing direct with Fundsmith as opposed to via a broker like iWeb apart from the minimal trading charges incurred by a broker?


Thanks,

badger09

RomfordNavy wrote: »

Can someone tell me if there is any difference between investing direct with Fundsmith as opposed to via a broker like iWeb apart from the minimal trading charges incurred by a broker?


Thanks,

Through IWEB, its I class, direct its T class. Might be easier to move I class if you ever wanted to?

Someone with far superior knowledge will no doubt be along soon

RomfordNavy

badger09 wrote: »

Through IWEB, its I class, direct its T class. Might be easier to move I class if you ever wanted to?

Someone with far superior knowledge will no doubt be along soon

Are you sure about that, I already have some with iWeb and they are

FUNDSMITH LLP EQTY FD T CL ACC STERL DIRE

Did I buy the wrong class of shares?

Linton

Unless you intend to invest all your money with Fundsmith, which I would suggest is a seriously bad idea, investing with the fund manager will make life difficult should you wish to move money from one investment to another. Better to use a platform which provides a good range of inbestments.

RomfordNavy

Investing direct with Fundsmith means I get the nice Annual letter sent in the post.

However, if I have understood this correctly, investing direct with Fundsmith means I get the T Class shares (OCF: 1.05%) whereas investing via iWeb I could get I Class shares (OCF: 0.95%).

Unfortunately the holding I currently have with iWeb are T Class so it looks like I bought the wrong class, should have purchased I class.

ColdIron

They are all the same fund, as far as I know the difference is just the OCF. A quick look shows the same transaction costs etc

• The I class will usually be the one offered on platforms, the OCF is 0.95% plus whatever charge your platform levies
• The T class is the one offered by Fundsmith direct, the OCF is 1.05% all in (no additional platform fee)
• The R class is the old 'dirty' class and no one should now be buying this with an OCF of 1.55%

RomfordNavy wrote: »

Are you sure about that, I already have some with iWeb and they are

FUNDSMITH LLP EQTY FD T CL ACC STERL DIRE

Did I buy the wrong class of shares?

Quite possibly. I'm surprised that iWeb offer it, but after a quick look it would appear that they do, and I could get as far as the Deal Now dialog

Linton

RomfordNavy wrote: »

Investing direct with Fundsmith means I get the nice Annual letter sent in the post.

However, if I have understood this correctly, investing direct with Fundsmith means I get the T Class shares (OCF: 1.05%) whereas investing via iWeb I could get I Class shares (OCF: 0.95%).

Unfortunately the holding I currently have with iWeb are T Class so it looks like I bought the wrong class, should have purchased I class.

Platforms normally sell just one class of any fund. The manager may require a certain level of business to sell lower charged funds. Looking at the fund details on Trstnet it appears that Fundsmith themselves would sell you Class T with a minimum order of £1000 but require an order of £5M if you wanted class I.


It looks like HL could sell you Class I.

Aminatidi

Going direct to Fundsmith will, as you say, get you an AGM invite and some direct correspondence.

Going via a platform will save you .10% as it'll typically be the I class and not the T class units but you may find platform fees means it costs more, or less.

I'd say it probably comes down to whether you're holding in an ISA wrapper or the maths around platform fees.

badger09

ColdIron wrote: »

They are all the same fund, as far as I know the difference is just the OCF. A quick look shows the same transaction costs etc

• The I class will usually be the one offered on platforms, the OCF is 0.95% plus whatever charge your platform levies
• The T class is the one offered by Fundsmith direct, the OCF is 1.05% all in (no additional platform fee)
• The R class is the old 'dirty' class and no one should now be buying this with an OCF of 1.55%

Quite possibly. I'm surprised that iWeb offer it, but after a quick look it would appear that they do, and I could get as far as the Deal Now dialog

That is weird

I'd swear that when I bought through IWEB, the T class wasn't offered

Prism

I use the T class in my ISA (effectively a 0.1% platform charge) and I class for my SIPP

TBC15

Prism wrote: »

I use the T class in my ISA (effectively a 0.1% platform charge) and I class for my SIPP

If you are above £120000 in Fundsmith would you not be better off with the I class in an II ISA?