Funds-different share classes ?

C_Mababejive

Hi all,

I'm looking at this fund as a possible investment but there are so many share classes. I had a read to try and find out what they all mean but am still unclear??

Can anyone shed any light please?

Global Health & Pharmaceuticals Index Trust | LGIM Fund Centre

gravel_2

Shan't look at it any further but this is from the fund docs. Different classes exist with different features but ultimately the same fund/performance. You'll note charge and stated min investments vary. 

On Fidelity it's only I units @0.31%. On HL they make a point of promoting a 0.11% "discount" charge, as they sell C units. On iWeb I can only find I units. Your platform will dictate what you can buy.

 

leosayer

It's best to look at the platforms you will use to see which classes they have available. 

Typically you will see combinations of the following:
- Income or accumulation (payment method of dividends)
- Currency hedged / not hedged to the price currency
- Price currency (GBP, USD, EUR etc.)

Other classes may also exist which generally won't be available on platforms because they are not relevant for UK retail consumers eg:
- High minimum investment
- Classes on available for certain countries
- Different charges

Eyeful

Basically the different share classes are aimed at different customers and their needs.

Example:
Those  for Institutional customers (I) who will invest £1M, will get a very low yearly charge .
 Retail customers (R), you and me will pay a higher yearly charge.

Read this, it should help you understand:
https://restless.co.uk/money/savings-and-investments/what-do-different-fund-share-classes-mean/

wmb194

Eyeful said:

Basically the different share classes are aimed at different customers and their needs.

Example:
Those  for Institutional customers (I) who will invest £1M, will get a very low yearly charge .
 Retail customers (R), you and me will pay a higher yearly charge.

Read this, it should help you understand:
https://restless.co.uk/money/savings-and-investments/what-do-different-fund-share-classes-mean/

It depends on your broker/platform. I have quite a number of I class OEICs and I haven't invested £1m+ in any of them.

Eyeful

I also have done the same. But in these cases, the broker/platform was the institution that bought the funds for £1M and then passed the savings on to us, attracting new customers and keeping us. If all broker/platforms, decided not to pass on these savings to us, then we both would end up paying the retail price if we wanted that investment.

My explanation is simple and clear enough I think, for the OP to understand why there are different share classes. No need to muddy the waters. 

wmb194

Eyeful said:

I also have done the same. But in these cases, the broker/platform was the institution that bought the funds for £1M and then passed the savings on to us, attracting new customers and keeping us. If all broker/platforms, decided not to pass on these savings to us, then we both would end up paying the retail price if we wanted that investment.

My explanation is simple and clear enough I think, for the OP to understand why there are different share classes. No need to muddy the waters. 

You gave the impression that I class is unavailable to retail investors. The OP needs to look at the classes his brokers/platforms offer.

C_Mababejive

Thanks all

aroominyork

It can get complicated. This month interactive investor and Hargreaves Lansdown both withdrew the H Acc version of iShares Continental European Equity Index Fund (UK). ii replaced it with D Class which has a minimum investment of £100,000 and and OCF of 0.06%. HL replaced it with S Class which has a minimum investment of £100,000,000 and and OCF 0.05%. Those factsheets show the one year performance as 13.30% for D Class and 13.31 % for S Class.I don't think the 0.01% saving will make me close my ii account.