RDR fund charges: how much could you save?
This infographic shows that more you hold in funds on the Barclays Stockbrokers Funds Market, the more you stand to save in charges by transferring from “bundled” to “clean” share classes.
Fund charges: how much could you save?
The more you hold in funds on the Barclays Stockbrokers Funds Market, the more you stand to save in charges by transferring from “bundled” to “clean” share classes. The Annual Management Charge (AMC) on bundled share classes includes a fee known as trail commission, which is paid to us for our services. Clean share classes don't have an element of trail. Under the new regulations, we are choosing to charge a separate Fund Administration Fee to cover our expenses. As the examples below illustrate, the new charging structure could mean that, overall, some people pay more than they do now, but we estimate that the majority of clients will pay less to hold the same funds*.
If you hold:
£2,000 in funds
£6,000 in funds
£20,000 in funds
£100,000 in funds
With bundled share classes you’d pay an annual management charge (AMC)*:
Going forward, typically you’ll pay the Fund Manager a lower AMC for the same fund:
Plus you’ll pay Barclays Stockbrokers a Fund Administration Fee:
Meaning your total charges would be:
So, we estimate you’ll end up paying:
* These examples are based on an illustrative 1.5% AMC for bundled share classes and an average AMC for clean share classes of 0.68%. The Fund Administration Fee payable on clean share classes will be 0.35% a year per account (subject to a minimum fee of £35).