Confusion-Fund classes

C_Mababejive

Im just trying to understand why there are differences between fund classes and why some providers offer one class and others offer another class of the same fund.

Example on HL

https://www.hl.co.uk/funds/fund-discounts,-prices--and--factsheets/search-results/l/legal-and-general-all-stocks-gilt-index-trust-c-accumulation/key-features

Whats the difference between class I and class C
Accumulation?

I might have missed it but why isnt it explained clearly on the details of the fund?

Thanks

SonOf

Whats the difference between class I and class C
Accumulation?

L&G have 5 share classes covering different distribution channels.

I is the clean share class.
C is the superclean share class. Superclean is a discounted clean shareclass.
R is the old retail share class (pre RDR - no longer available for new business)
F is the share class offered if you buy direct from L&G
J - not known what distribution offers that. (maybe institutional)

Most of the big platforms have some superclean share classes. Indeed, in some cases, it has been farcical that the superclean is so widely offered that you have to question why there is an additional share class and that the superclean isn't the main share class.

ColdIron

Charges, see the All Units tab in this link
https://www.trustnet.com/factsheets/o/g5ym/lg-all-stocks-gilt-index-trust-i-acc

green_man

Why would anyone want to buy the I rather than the C if both were available on the same platform? Why in fact do they host the I if clearly there is a cheaper option available?

Edit, ok I looked at the link and the minimum investments are vastly different (though both set at fund manager type level) so I guess it’s fair enough

jamei305

green_man wrote: »

Why would anyone want to buy the I rather than the C if both were available on the same platform? Why in fact do they host the I if clearly there is a cheaper option available?

If they were planning to transfer to a different platform not offering the C-class, and so the platform can accept transfers in of the I class.

SonOf

Why would anyone want to buy the I rather than the C if both were available on the same platform? Why in fact do they host the I if clearly there is a cheaper option available?

Whole of market platforms offer the clean and superclean as not all superclean have zero initial charges. Architas, for example, have multiple levels of superclean. One of which includes an initial charge but lower annual which may be suitable for very long term holders. Platforms are not there to make your mind up for you. They offer choice. Also, fund houses can pull superclean from a platform and re-registrations in are easier if the fund class is available.

Edit, ok I looked at the link and the minimum investments are vastly different (though both set at fund manager type level) so I guess it’s fair enough

That rarely matters when buying via a platform. Those figures are direct purchases.

C_Mababejive

Hmm,,so whats the difference between clean (I) and superclean (C)?

In the quoted fund i can see HL offer it in C and AJ bell offer it in (I)?

Why cant they all just clean up their act and simply offer the fund in Acc and inc with all charges clear? Presumably thats what we will end up with and a lot of this nonsense is historical?

ColdIron

C_Mababejive wrote: »

Hmm,,so whats the difference between clean (I) and sperclean (C)?

One has an OCF of 0.10% and the other 0.15%. Did you look at my link or read yours?
https://www.trustnet.com/factsheets/o/g5ym/lg-all-stocks-gilt-index-trust-i-acc

What cant they all just clean up their act and simply offer the fund in Acc and inc with all charges clear?

Looks clear to me. From your link ...

Net ongoing charge: 0.10%
There are other unit types of this fund available:
Class I - Accumulation (GBP) (Net ongoing charge 0.15%)
Class I - Income (GBP) (Net ongoing charge 0.15%)
Class C - Income (GBP) (Net ongoing charge 0.10%)