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Fund availability

  • On 18 December 2012 the same funds will be available for all three charge bases.
  • Moving forward, Charge Basis 1 and Charge Basis 2 will be the same, but Charge Basis 3 can have different funds or different share classes (typically clean share class).
  • Different share classes can have different AMC/TER/rebates – details of each are in Old Mutual Wealth's platform Funds List.
  • When converting to Charge Basis 3, customers can retain existing holdings in funds - even if these funds are not available for new investments.
  • Existing investments and instructions are not affected, eg:
    •   – Existing regular investment instructions
    •   – Existing rebalancing
    •   – Existing phased investment.
  • Switching from one share class to a different share class of the same fund will not constitute a CGT event provided this is done as a single transaction.
  • If an account has two different versions of the same fund, these will be reported separately on valuation statements, extranet pages, for switching etc.

Portfolios

  • Portfolios can include funds available for any charge basis.
  • Portfolios cannot contain a combination of funds that are only available for investments on Charge Basis 1 and 2, and funds that are only available for investments on Charge Basis 3 (as it would never be possible to use such a portfolio).
  • When using a model portfolio for an investment instruction, the fund availability rules will check that all the funds in the model portfolio are available for the charge basis applicable to the account. Any funds that are not available will be highlighted, and can be replaced by a different fund.
  • When copying an existing optimised model portfolio, the new copy of the portfolio will also be saved as an optimised model. (Currently this cannot be done.)

Disclosure of rebates

  • As part of the pre-investment process, advisers must provide details of rebates retained by Old Mutual Wealth and/or rebates that will be paid to the customer, for the funds being considered, and provide a declaration that they have done so.
  • The rebate details vary by charge basis.
  • Rebates details are provided in various documents, including:
    •   – Illustrations and projections
    •   – Old Mutual Wealth's platform Funds List (different versions for each charge basis)
    •   – Fund fact sheets
    •   – Fund research screens on the adviser extranet
  • The customer declaration includes a statement that they have received the rebate details for the funds being invested in.

Financial Adviser Verification