Find out everything you need to know about how we will convert your fund holdings from bundled to clean share classes.
Everything you need to know
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Annual Management Charge (AMC)
This is the fee charged by the Fund Manager for managing the investment. The AMC can be either ‘bundled’ or ‘clean’ (see definitions).
Clean/bundled share classes
These are names given to types of share class:
Bundled share class
Sometimes called ‘dirty’ funds, this is when the fee that the Fund Manager earns and the trail commission paid to the platform or service provider, e.g. Barclays Stockbrokers, are ‘bundled’ together in the Annual Management Charge (AMC). The AMC is paid to the Fund Manager who, in turn, pays the trail commission to the platform.
Clean share class
This is when the AMC only contains the fee that is paid to the Fund Manager. Because no trail commission is included in the clean share class, the AMC is usually lower. Generally, a separate administration or platform fee is paid by the investor to the platform.
Also known as ‘share class conversion’ this is the process whereby investments in ‘bundled’ share classes are moved by Barclays Stockbrokers into ‘clean’ share classes.
An event initiated by a public company that affects the securities issued by the company. Some corporate actions may have a direct financial impact on the shareholders or bondholders, e.g. payment of a dividend or interest. Other corporate actions can have an indirect impact, e.g. stock splits, mergers, acquisitions, rights issues and spin offs.
Payment of a company's post tax profits distributed to its shareholders, usually expressed as pence (per share).
Financial Conduct Authority (FCA)
The regulator for the financial services industry in the UK. The FCA's objective is to protect consumers, protect and enhance the integrity of the UK financial industry to ensure it remains stable and promote healthy competition in the interests of consumers. Barclays Stockbrokers is authorised and regulated by the FCA.
A fund is a collective investment vehicle that allows you to invest indirectly in equities or other types of assets. It's collective in the sense that your money is pooled with that of other investors. A Fund Manager runs the fund and selects the investments it holds in line with the fund objective.
Fund Administration Fee
This is the fee charged by Barclays Stockbrokers to pay for the administration services offered to funds investors.
This is the organisation that manages the assets being invested in a fund.
A selection of over 2,000 funds from more than 100 fund providers, available to buy and sell online via Barclays Stockbrokers. Investors who only hold funds from our Funds Market won’t pay account charges or initial charges. The Fund Manager’s Annual Management Charge (AMC) and the Fund Administration Fee still apply.
These are investment funds that are designed to follow or ‘track’ an index, for example, the FTSE100. The Fund Manager does not take ‘active’ investment decisions.
This is the name given to a distributor of investment funds and other retail investment products. They will provide a range of services including administration. Barclays Stockbrokers is a platform service provider.
These are classes of funds that the Fund Administration Fee will be applied to. There are three different categories:
- clean share class funds
- bundled share class funds where the investor has opted out of the conversion to clean share class. In this case, the fee will be applied from 1 November 2014
- bundled share class funds purchased after 5 April 2014
Most Fund Managers offer different classes of shares or units in each of their funds, e.g. A class, B class, Retail class, I class etc. These different classes of shares have different levels of Annual Management Charge (AMC) and are designed for different kinds of investors e.g. they can have a different minimum investment amount per transaction.
Share class conversions
Also known as ‘conversions’ this is the process whereby investments in ‘bundled’ share classes are moved by Barclays Stockbrokers into ‘clean’ share classes.
This is a payment made by the Fund Manager to a platform service provider or adviser in return for services such as distribution, advice and administration relating to holdings in funds.