Schroders charge increase

Schroders has announced that it will be increasing the ongoing charge figure (OCF) for the Schroder Recovery fund, in order to bring it into line with the costs of other funds in their range.  

The OCF will rise from 1.51% to 1.66% on 15th February 2015.

However, the rise will only apply to the old bundled share class or, in other words, investments made before April 2014.

So, what is the difference between bundled and unbundled pricing?
Prior to April 2014, across the whole investment industry, the fund manager would take a “bundled” fee, and return commission to the platform and intermediary. Following a review by the Financial Conduct Authority (FCA), it was decided that these charges should be “unbundled” in future to increase the transparency of charges. Therefore, any investments made via a platform, after 5th April 2014, are charged under the new structure.

Unless a client moves their previous investments to the new charging structure, they will remain in the bundled structure until 2016, when they will be moved automatically.

How can you reduce your investment costs?
At Chelsea, we have reduced our service fee from 0.5% to 0.4% under the new charging structure. We have also negotiated a reduction in the Cofunds charge from 0.25% to 0.2%. There are additional savings for investors with more than £250,000 invested with us. The more money you invest, the larger the discounts we can offer. You can find full details here.

This means that investors in the Schroder Recovery fund could save money by moving their investment to the new charging structure, if they haven't already done so.

If you are one of these investors, or indeed still have some or all of the “bundled” funds in your portfolio, and want to benefit from our current, cheaper charges, please download and complete the Share Class Conversion form.

Alternatively, to make any changes to your portfolio, you can do this: