INVESTMENTS
DISCOUNTS
Unit trusts and OEICs normally impose an initial charge on new investments. The rate of charge varies by fund but a typical rate is 5% or 5.25%. The charge pays for adviser commission (typically 3%) and the fund manager’s expenses.
We have negotiated special terms with a number of fund managers. These are generally expressed as creation + 0.5% or creation + 0.25% (plus any adviser initial commission). This results in a significant discount for the investor, paid for by a reduction in the charge taken by the fund manager. Examples are:
| Fund charge | Fund manager share | Adviser commission | Client discount | Client effective charge |
|
5% |
2% |
3% |
0% |
5% |
|
Creation + 0.5% |
0.5% |
3% |
1.5% |
3.5% |
|
Creation + 0.25% |
0.25% |
3% |
1.75% |
3.25% |
DISCLAIMER
The information on this page is for advisers only and should not be relied upon by individuals.