Often a fund manager will apply an initial charge when a Unit Trust, OEIC (Open Ended Investment Company) or ISA investment is purchased. If there is an initial charge, it will normally be deducted from the amount you intend to invest in a fund. The charge is made by the fund manager to cover costs it incurs when setting up your investment in a fund and include dealing and administration costs. Initial charges typically range from 3% to 5.25%. They can vary between fund managers and the individual funds that may be offered.
SFS Invest Direct will rebate all initial commission to help reduce or even eliminate the initial charge - if you buy online.
Intermediaries usually receive commission from fund managers when a client invests in one of their funds. It is accounted for by the fund managers in their initial charges and is calculated as a percentage of your investment into the fund. Commission can be as high as 5 percent on ISAs, Unit Trusts and OEICs.
When you buy online with SFS Invest Direct we pass on 100% of the initial commission to you to reduce the initial charges made by the fund managers. If you require advice from one of our whole of market advisers it is not possible to pass on this saving to you as it is required to cover the cost of providing advice.
To speak to a member of our Investor Services team please call 0800 121 4595 or complete a call back request and we’ll call you back.
An Annual Management Charge (AMC) is a fee applied to your investment on a yearly basis by a fund manager. The charge is in place to cover expenses incurred by the fund manager in the running of the fund, for example fees, administration costs, trail commission and investment management costs.
Annual management charges are normally a percentage of the value of your fund and are typically between 1% and 1.5%.
Fund managers pay intermediaries, including Skipton Financial Services Ltd, trail commission for as long as a service is provided in relation to your investments. Trail commission is calculated as a percentage of the value of your investment, this percentage is typically 0.5% per annum and is paid by the fund provider.
After becoming a SFS Invest Direct customer you can switch the funds that you hold as often as you like. A reduced initial charge of 0.25% is currently available on all funds.
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