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What do the different fund class mean?
henryandmay
Posts: 54 Forumite
For example;
BlackRock Consensus 85 Class I - Accumulation (GBP)
And
BlackRock Consensus 85 Inclusive - Class A - Accumulation (GBP)
What does the class I and A mean and which one would someone chose to invest in?
Thanks
BlackRock Consensus 85 Class I - Accumulation (GBP)
And
BlackRock Consensus 85 Inclusive - Class A - Accumulation (GBP)
What does the class I and A mean and which one would someone chose to invest in?
Thanks
0
Comments
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usually one is institutional and one is retail. The info docs will tell you the difference - the retail one usually has a much smaller minimum investment figureI’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
So retail is open to joe public to invest?0
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yes - if your platform supports it.I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
& Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.0 -
The A class is the old pre-RDR version that HL call 'inclusive'. It has a higher OCF though this will be rebated to you. You want the newer 'clean' I class0
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please can you explain this as if you were speaking to a child
:rotfl:0 -
retail share classes are mostly not available to buy any more. You need a clean share class or super clean share class.
The platform should only show you the share classes you can buy. So, when you type in the fund name, it should come back with the versions it offers. The initial charge and OCF are the things that differe with each share class.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
retail share classes are mostly not available to buy any more. You need a clean share class or super clean share class.
The platform should only show you the share classes you can buy. So, when you type in the fund name, it should come back with the versions it offers. The initial charge and OCF are the things that differe with each share class.
So why would you choice one share class over another?0 -
I usually go for the one with the lowest OCF overall after any discounts/rebates.... is that the right way to do it ?0
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Before the Retail Distribution Review in 2014 fund houses would pay the platform/advisor etc a commission which was reflected in the OCF (but not obviously). This is now outlawed and newer clean classes with a lower OCF were introduced and the platform/advisor must now make an explicit charge rather than the commission being hidden away in charges. The A class is the old one although the commission that would have been paid is returned to you as cash. The new I class is 'clean' as there is less jiggery pokery with commissions and rebates. The older dirty class is really only for people who had bought in before 2014 and for some reason haven't moved to the clean class. Sooner or later they may be removed from sale. You probably want as much of your money kept in the fund rather than receiving dribs and drabs as cash that you have to reinvest0
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henryandmay wrote: »So why would you choice one share class over another?
Retail share classes can still be used in legacy life assurance and pension wrappers. Sometimes it cheaper to remain on those rather than convert to post 2013 standards. ***
Clean share classes are the default post 2013 version.
Superclean are not available on every platform. I beleive the two bigger platforms with the most superclean funds are Old Mutual Wealth (who were the first company to offer external funds in a single wrapper under the old Skandia brand) and Standard Life.
Some Super-Superclean have initial charges but even lower annual charge but that only makes them cheaper if you hold them for a certain period.
*** some pre-2013 contracts are cheaper to remain on retail share classes. Plus do not forget you have multiple tax wrappers; ISA, PPP, SIPP, onshore bond, offshore bond and of course unwrapped holdings too.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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