Clean funds explained
When you hold a fund you will typically see the ‘Ongoing Charge Figure’ or OCF quoted in the Key investor information document (KIID) or fund fact sheets. The OCF is the charge that fund managers levy investors for managing the fund. Before regulatory changes in 2013, fund OCFs usually included platform fees and trail commission.
Funds introduced since this regulatory change are now called ‘clean funds’ and have an OCF which does not include any platform fees or trail commission. With clean funds you pay a lower OCF and a separate charge to the platform where the fund is held.
The advantage of clean pricing for funds is that it gives you greater transparency over how much you are paying and what you are paying for.
Investing in funds with AJ Bell Youinvest
You can invest in over 4,000 funds with AJ Bell Youinvest and all of these are clean priced funds.
We have a tiered fund charge starting at 0.25% per annum - per account - for holding funds. This is based on the value of the funds in your account at the end of the quarter. The charge for buying or selling a fund online or as a regular investment is £1.50 per deal. You can find full details of our charges on our charges and rates page.
Transferring and converting funds
When you are transferring any funds to us, we will convert your holding to the clean fund equivalent, as soon as the transfer has completed. If there is no clean fund equivalent then we will hold the fund in its existing form, but will convert it in future if the fund manager creates a clean fund equivalent.
Please call our dealing services team on 0345 37 33 479 if you have any questions regarding your fund holdings or conversions.