More information about Fund Supermarkets
What are fund supermarkets?
Fund supermarkets enable you to invest in funds from different fund managers in one place. You can still use Clubfinance as your discount broker to access Clubfinance's low annual fee and commission rebates on existing legacy commission-bearing funds.
Fund supermarkets do not themselves manage your portfolio or any of the funds you have selected. The fund management company for each fund you have chosen handles the day-to-day management of your investments. The supermarket merely provides you with a platform to use to enable you to benefit from a spread of investments in one place.
What can I buy?
At present, you can buy: Unit Trusts, OEICs (Open Ended Investment Companies), and in some cases other funds and products including SICAVs (Luxembourg-based funds). The vast majority of funds can also be purchased in an ISA.
What about commission?
For the fund supermarkets we cover on our website, Clubfinance charges an annual fee of 0.05%, and rebates 100% of any commission (this will apply to existing holdings of legacy commission-bearing funds). These rebates are applied automatically within your fund supermarket account. Please note that outside an ISA or pension wrapper, trail commission rebates are subject to income tax.
Why use a fund supermarket?
In some cases the supermarket will have negotiated discounts on the fund initial and/or ongoing charges.
Reduced administration and paperwork - a single administrator for all your funds.
You can mix and match funds from different fund managers within the same account and within a single ISA.
You can switch between funds from different fund managers generally at little or no cost. Depending on the fund and the fund supermarket, the switch charge is generally 0% or 0.25% (although there may also be a difference between the price at which units/shares are bought and sold (dual-priced funds) or possibly a dilution levy (single-priced funds)).
What are the disadvantages?
It may not be possible to move your funds outside the supermarket or to a different supermarket without selling your investments or incurring a charge.
The timing of income distributions may be different for the same funds held within a supermarket.
It is possible that for some transactions, more suitable terms or lower charges might be obtained direct from the fund manager.
You will not receive the individual fund managers' investor newsletters or fund reports and financial statements (although these are generally available online).
There will be annual fees charged by the fund supermarket - although a particular fund will often still be cheaper than investing direct with the fund manager, this is not guaranteed to be the case.
What types of transaction can I perform in a fund supermarket?
This is simply investing new money inside or outside an ISA.
Re-registration means moving funds you hold that are administered by other companies (e.g. the fund manager for direct holdings) without having to sell and re-buy them.
Re-registration can be used for funds held inside or outside an ISA (including former PEPs), but not all funds can be re-registered. The fund supermarkets provide lists of the funds that can be re-registered.
Fund supermarkets do not charge to re-register funds onto them, but a small number of fund providers may levy an exit charge, and funds already held on another fund supermarket or platform may also charge an exit fee for moving them off.
Some funds cannot be re-registered. However, you can still carry out a conventional ISA transfer to a fund supermarket. This includes ISAs that were formerly PEPs.
This will involve selling your existing funds, but you will retain the ISA status of your investment.
Note that dual-priced funds will have a higher price for buying units than for selling units and single-priced funds may have a dilution levy applied under some circumstances.
For ISA transfers, please take note of the additional risk warnings and general points available here.
If you want to change the funds you have invested in you can switch between funds from different fund managers generally at little or no cost. Depending on the fund and the fund supermarket, the switch charge is generally 0% or 0.25% (although there may also be a difference between the price at which units/shares are bought and sold (dual-priced funds) or possibly a dilution levy (single-priced funds)).
I already have investments through a fund supermarket
If you do not need advice, for most fund supermarkets, you can Change your Agent to Clubfinance to benefit from our service.
Which supermarkets are available?
We currently cover the following fund supermarkets on our website.
- Fidelity FundsNetwork
- Old Mutual Wealth's platform (formerly known as Skandia Investment Solutions)
If you are interested in another fund supermarket please contact us.
You can also hold, buy and sell funds using Clubfinance's Frequent Trader funds & share-dealing service. Click here for more information.
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