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.