Institutional Units?

Aged

I'm having a discussion with Trustnet re one of my funds which is now no longer available on the portfolio tool. Trustnet claim that the fund is classified as an 'institutional unit' and therefore is outwith the scope of the tool's universe. As far as I am aware, the fund is classified as an ICVC and therefore should be included. However, I don't really know what an 'institutional unit' is - could someone give me some examples please?

dunstonh

I'm having a discussion with Trustnet re one of my funds which is now no longer available on the portfolio tool. Trustnet claim that the fund is classified as an 'institutional unit' and therefore is outwith the scope of the tool's universe.

Can you confirm what fund it is?
How did you end up with an institutional fund? 

Institutional OEICs/UTs are lower charged units than the clean share class.  Typically aimed at large investors and IFAs using discretionary MPS.

For instance:  Vanguard Global Bond Index Hedged (IE00B50W2R13) has an OCF at 0.15%, but the institutional class  (IE00BPT2BQ43)  is 0.10%.    

Institutional share class OEICs/UTs should appear on FE (Trustnet) if they are available.   They shouldn't be removing those.   However, I have noticed some insurers in the last few months have seen their insured funds used with workplace pensions being taken off FE.   These could be classed as institutional as they are typically custom funds.  I asked FE why and they said that the insurers have been telling FE that they are "private" funds and asked for them to be removed.  Aegon and Aviva have been the ones I have spotted.    

masonic

dunstonh said:

Institutional share class OEICs/UTs should appear on FE (Trustnet) if they are available.   They shouldn't be removing those.   However, I have noticed some insurers in the last few months have seen their insured funds used with workplace pensions being taken off FE.   These could be classed as institutional as they are typically custom funds.  I asked FE why and they said that the insurers have been telling FE that they are "private" funds and asked for them to be removed.  Aegon and Aviva have been the ones I have spotted.   

I wonder why they would not want them listed. After all, it is helpful to customers to be able to see how their workplace pension funds are performing. Perhaps that's the problem...

Aged

dunstonh said:

I'm having a discussion with Trustnet re one of my funds which is now no longer available on the portfolio tool. Trustnet claim that the fund is classified as an 'institutional unit' and therefore is outwith the scope of the tool's universe.

Can you confirm what fund it is?
How did you end up with an institutional fund? 

Institutional OEICs/UTs are lower charged units than the clean share class.  Typically aimed at large investors and IFAs using discretionary MPS.

For instance:  Vanguard Global Bond Index Hedged (IE00B50W2R13) has an OCF at 0.15%, but the institutional class  (IE00BPT2BQ43)  is 0.10%.    

Institutional share class OEICs/UTs should appear on FE (Trustnet) if they are available.   They shouldn't be removing those.   However, I have noticed some insurers in the last few months have seen their insured funds used with workplace pensions being taken off FE.   These could be classed as institutional as they are typically custom funds.  I asked FE why and they said that the insurers have been telling FE that they are "private" funds and asked for them to be removed.  Aegon and Aviva have been the ones I have spotted.    

Hi Dunston. The fund in question is CG Absolute Return M (IE00BYQ69B30). I don't think I have an institutional fund - it was on my provider's list of investable funds.

Hoenir

masonic said:

dunstonh said:

Institutional share class OEICs/UTs should appear on FE (Trustnet) if they are available.   They shouldn't be removing those.   However, I have noticed some insurers in the last few months have seen their insured funds used with workplace pensions being taken off FE.   These could be classed as institutional as they are typically custom funds.  I asked FE why and they said that the insurers have been telling FE that they are "private" funds and asked for them to be removed.  Aegon and Aviva have been the ones I have spotted.   

I wonder why they would not want them listed. After all, it is helpful to customers to be able to see how their workplace pension funds are performing. Perhaps that's the problem...

Costs money to have them listed? 

masonic

Hoenir said:

masonic said:

dunstonh said:

Institutional share class OEICs/UTs should appear on FE (Trustnet) if they are available.   They shouldn't be removing those.   However, I have noticed some insurers in the last few months have seen their insured funds used with workplace pensions being taken off FE.   These could be classed as institutional as they are typically custom funds.  I asked FE why and they said that the insurers have been telling FE that they are "private" funds and asked for them to be removed.  Aegon and Aviva have been the ones I have spotted.   

I wonder why they would not want them listed. After all, it is helpful to customers to be able to see how their workplace pension funds are performing. Perhaps that's the problem...

Costs money to have them listed? 

They still list non-subscribing funds. The level of detail is more limited, but the basics, including charting, is available. A request for complete removal would seem to be more than a cost-cutting exercise.

dunstonh

Aged said:

dunstonh said:

I'm having a discussion with Trustnet re one of my funds which is now no longer available on the portfolio tool. Trustnet claim that the fund is classified as an 'institutional unit' and therefore is outwith the scope of the tool's universe.

Can you confirm what fund it is?
How did you end up with an institutional fund? 

Institutional OEICs/UTs are lower charged units than the clean share class.  Typically aimed at large investors and IFAs using discretionary MPS.

For instance:  Vanguard Global Bond Index Hedged (IE00B50W2R13) has an OCF at 0.15%, but the institutional class  (IE00BPT2BQ43)  is 0.10%.    

Institutional share class OEICs/UTs should appear on FE (Trustnet) if they are available.   They shouldn't be removing those.   However, I have noticed some insurers in the last few months have seen their insured funds used with workplace pensions being taken off FE.   These could be classed as institutional as they are typically custom funds.  I asked FE why and they said that the insurers have been telling FE that they are "private" funds and asked for them to be removed.  Aegon and Aviva have been the ones I have spotted.    

Hi Dunston. The fund in question is CG Absolute Return M (IE00BYQ69B30). I don't think I have an institutional fund - it was on my provider's list of investable funds.

It appears on FE Analytics.  That is the commercial version of Trustnet.  It also appears on Morningstar.    I was also able to get it on Trustnet:  https://www.trustnet.com/factsheets/b/nykt/cg-absolute-return

As a normal investor, you typically wouldn't get access to institutional funds unless the platform comes to an agreement with the fund house to ensure at least £xxx comes their way.

I wonder why they would not want them listed. After all, it is helpful to customers to be able to see how their workplace pension funds are performing. Perhaps that's the problem...

I don't know. I had two opinions but both are just guesses.
1) FE are looking to bring in another tier that they can charge more for to get them included.
2) the providers don't want IFAs to move the pensions and usually, those funds have pretty poor performance relative to similar whole of market options.   If you remove performance data, it makes it harder to compare performance.

Aged

Update - Trustnet have now agreed to add the fund to the portfolio tool.