Find out about clean share classes, switching from bundled share classes to the equivalent clean share class, and how it will affect you.
Transferring funds to us

Transferring funds to us

Bundled and clean share classes

Previously most funds bought by investors were in 'bundled' share classes with an average Annual Management Charge (AMC) of around 1.5%. The cost of us administering your fund investments was met by payments we received from the fund manager, which in turn was paid out of the AMC the fund manager charged you.

Most fund managers now offer 'clean' share class versions of their funds which do not pay out any fee to us from the AMC and have a lower charge, an average of 0.68%.

You now pay us a separate Fund Administration Fee for the administration of your fund.

A benefit of the new approach is that it is easier for you to know what you are paying us for administering your investments and what you are paying the fund manager for investment management.

Find out more about Retail Distribution Review and our fund administration fee charging.

Transferring to us

If funds you transfer to us are in 'bundled' share classes, or we can access a share class with lower charges, we will switch them to the equivalent cheaper share class,  where available, when we receive the holding into your Barclays Stockbrokers account. Your investment will still be in the same fund but you will then have the new cheaper share class units, which means you will pay a lower AMC than before.

Switching to clean share classes

A switch is where your fund holding is sold and then the same money is reinvested, in this case, back into the same fund but just in a different share class unit. Because the sale and purchase are placed on separate days, to allow confirmation of how much money has been raised and can be reinvested, you will be ‘out of the market’ for a day or so.  This means you may miss out on increases in the value of your fund holding during that period or avoid a loss.

Switches from bundled to clean units of the same fund are not considered Capital Gains Tax (CGT) events by HMRC.

Sell and buy prices

Most funds have one price each day at which you can both sell and buy. Some funds however have separate sell and buy prices, or ‘bid and offer’ prices, which reflect the difference in the cost of selling or buying the underlying assets that the fund holds. This means you will sell your bundled units at the lower selling price and buy back the clean units at a slightly higher buy price.  This means there may be a cost to you as part of the switching process.

While there may be a cost to you due to the switching process, the annual cost of holding clean share classes is on average 1.03% (AMC of 0.68% + fund administration fee of 0.35%) compared to a typical charge of 1.5% in the bundled share class. You can therefore expect to have lower costs over time. The funds listed below are those where the sell-buy spread is likely to have an impact on your fund value and gives an illustration of the impact.  Please note that the sell-buy spread varies with market movements and these figures are only indicative.

Things to keep in mind

  • On a very small number of funds, the transactions may be liable to a dilution levy or the Fund Manager may apply a proportion of the initial charge to your purchase deal.
  • When performing the switch we may need to place the reinvestment into a different unit type than you have sold i.e. you sell bundled units which pay out income but the clean units purchased are accumulation units where the income is not paid out. This will only be the case for a small number of funds.
  • We can only switch the fund where the equivalent clean share class is available on our platform. If we are unable to switch your fund holding we will contact you and let you know your options. These may include retaining the fund with your current provider or selling the fund and transferring as cash to your Barclays Stockbrokers account.
We’ll do all we can to make sure your transfer is completed as smoothly and quickly as possible. The time taken is also dependent upon the level of co-operation received from your current provider and the Fund Managers. We estimate the average time to complete fund transfers is 10 to 12 weeks.

 

*0808 calls are free if made from a UK landline. Calls may be recorded so that we can monitor the quality of our service and for security purposes. If calling from outside the UK, please dial +44 141 352 3942. Calls to 0141 numbers are charged at local rate, mobile costs may vary - please check with your telecoms provider. Our opening hours are 8am to 6.30pm Monday to Thursday, 8am to 6pm on Friday (excluding bank holidays) and 9.30am to 12.30pm on Saturday.

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