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What exactly is a fund supermarket? |
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A
fund supermarket is a company, which holds funds and administers
your ISA, PEP and Unit Trust/OEIC plans. A supermarket offers
access to a range of funds from different investment management
groups within one plan. This combined with re-registration, can
give you greater flexibility in managing your total portfolio. |
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Why
should I use a supermarket? |
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Investing via a fund supermarket allows clients to combine funds
from a range of investment groups n one ISA plan - a degree of
flexibility which was not possible before. You can create a
portfolio of funds and balance your existing portfolios by
selecting funds with different levels of risk. Supermarkets also
make it easier and quicker to transfer your investments between
funds, provided the same supermarket handles both funds. |
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Which supermarket should I use? |
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Allenbridge clients can invest their ISA allowance, their PEPs,
Unit Trusts and OEICs with either Cofunds or Fidelity
FundsNetwork. Cofunds offers over 800 funds from 51 different
investment management groups. Fidelity offers over 900 funds from 54
groups. The majority of funds are common to both supermarkets. |
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Does it cost more to use a supermarket? |
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No.
Cofunds and Fidelity FundsNetwork do not charge clients any fees
other than the annual fees charged by the fund management
companies. |
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Can my ISA portfolio include funds from more than one
supermarket? |
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No.
In order to satisfy Inland Revenue requirements, your
investments for the current tax year - up to £7,000 in stocks
and shares funds for a Maxi ISA and £3,000 for a Mini ISA - must
be from just one supermarket. This still offers a far wider
choice of funds and managers than you would get from a single
investment management group. |
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Is
there a minimum investment? |
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The
minimum investment in one fund is £1,000, and for top up it is
£500 |
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Will I still get my Allenbridge discount? |
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Yes.
The discounts are exactly the same as if the fund management
company was your plan manager. The only exception are the
Allenbridge cash-back discounts, which are not available through
the supermarket. |
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Can
I choose to invest my total ISA allowance in just one fund? |
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Yes.
However, this is not something which we would necessarily
recommend since it exposes you to a greater risk if the fund
does not perform well. In the simplest case if you wish to
invest in just one market sector, rather than putting everything
with just one top manager in the sector you can spread your
investment over two or more funds. |
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What paperwork and information will I receive after I invest? |
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You
should receive a contract note from the fund supermarket within
7-14 days following their receipt of your application via
Allenbridge. Twice a year the supermarket will send you
valuation statements of the investments it holds for you/
Cofunds offers the option of receiving a report from the fund
manager at no extra cost to you. In addition you will receive a
quarterly report and valuation from Allenbridge covering all of
the funds you have in Allenbridgecare whether in a
supermarket or outside it. |
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Can I move my existing plans to a supermarket? |
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Yes.
More and more fund managers are allowing their funds to be
re-registered via the fund supermarkets. |
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How can I move my funds to a supermarket? |
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There
are two methods to move your holdings from your present fund
manager to a fund supermarket, neither of which affects the
tax-exempt status of your holding or your current year ISA
allowance. The two methods are:
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Transfer in the form of cash |
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Re-registration of the holding |
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What is transferring in the form of cash? |
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Transferring in the form of cash is the quicker of the two
options but is only available for holdings within a PEP or ISA
wrapper. The present holding is sold and the monies sent to the
supermarket where they are invested in the funds you have
chosen. Although this is quicker than the alternative method,
the proceeds of sales are "out of the market" until the new
funds are bought. This can take up to one month but is usually
completed within a fortnight. If the price of the new funds
rises during that time you can be disadvantaged. |
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What is re-registration of the holding? |
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If
you want to move your existing unit holdings into a fund
supermarket and avoid the need to sell and buy back the units
then check to see if this option is available to you. This
removes the "out of the market" risk mentioned above. When
re-registering stock to a supermarket the details of the stock
certificate held by your plan manager will be altered to reflect
that you now hold the funds through the supermarket. This is
process is more suited to those holdings you intend to keep for
the ling term since, in most cases, it takes between four and
six weeks to complete and can take longer. Please note, during
this period it is not possible to sell the holdings being
transferred. |
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Can I re-register all my funds |
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Not
necessarily. Please check the sections on Cofunds and Fidelity
FundsNetwork for the latest list of fund managers allowing
re-registrations. |
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Is
there a charge for the re-registration service? |
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We
make no charge for transferring and provide our full discount on
the new funds. You will incur the variable market charge of
approximately 1% inclusive of any stamp duty. Some fund managers
may collect and exit charge so please check the sections on
Cofunds and Fidelity FundsNetwork for the latest list of fund
managers allowing re-registrations, where additional charges are
explained in more detail. |
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Do
I have to make fund switches as soon as I re-register |
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No.
You do not need to do anything immediately; only when you choose
to do so. You will then be in position to switch easily into one
of more of the hundreds of funds, which the supermarkets can
then buy or sell for you. |
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What if I do want to switch funds? |
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For
most plan managers a simple letter explaining the changes you
want made is sufficient. Please remember to quote your Plan
Manager Account Number. Both Cofunds and FundsNetwork have
specific switching forms which can be obtained from our website
or by contacting us. FundsNetwork clients can switch
on-line. |
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Can I phase my investments? |
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Fidelity FundsNetwork offers a phasing option. This enables you
to pay up front for your ISA, but FundsNetwork will only invest
one sixth in each of the following six months. Both Cofunds
and FundsNetwork offer a monthly savings plan. You can invest
£50 or more per month per fund. |
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Can
invest with Cofunds and Fidelity FundsNetwork on-line? |
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Yes.
You can invest with both Cofunds and FundsNetwork over the
internet by accessing the INVEST ONLINE section of the website.
It is important to invest via this website rather than trying to
go to the fund supermarkets' websites.
Investing via our website will identify you as our client and
will automatically entitle you to any Allenbridge discounts, as
well as the Allenbridgecare service. You will need to use
a switch or delta card. |
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Can I see my portfolio online? |
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Yes.
FundsNetwork will let you view your portfolio online. Cofunds is
planning to bring out this service at a later stage. For all
your investments made through Allenbridge or registered with the
Allenbridgecare service you can access your online
portfolio through this website by selecting the My Portfolio
option from the menu. |
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Can I control my investments on-line? |
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Yes.
If you hold investments with Fidelity FundsNetwork you can
switch or top up your investment on the internet. Cofunds is
planning to roll out this service at a later stage. To access
your account with Fidelity please choose the Invest Online
option from the menu and navigate through to the Fidelity
FundsNetwork section where you can access your FundsNetwork
account by choosing Account Management.
You may need to contact Fidelity to obtain a logon ID and a
password to access your FundsNetwork portfolio. |
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