We wanted to let you know about an opportunity to re-register any holdings you may still have with other companies, brokers or platforms. If acted upon, it could make a big difference to the returns made on these investments, maybe even thousands of pounds in extra profit. Companies like Jupiter, Janus Henderson, Schroders or Invesco held directly, through another broker or via a platform like Aegon, Fidelity FundsNetwork or Hargreaves Lansdown.
Consolidate with Elson Associates and receive a cashback!
If you still hold funds outside our agency with fund managers or platforms like the ones mentioned, this article could be worth a sizable sum of money to you. Even if you don't, this offer might still benefit you or somebody you know, so please read on...
It is an offer to potentially save you money on existing charges, plus as a way of saying thank you for your business, we'll pay you 0.25% of the value of your existing investments transferred to our agency. That's £25 on an investment valued at £10,000 or £125 on £50,000 and even more on higher amounts.
Nearly all companies have been forced to introduce new lower-cost versions of their funds known as 'clean' funds which can be accessed by ourselves on Fidelity FundsNetwork. This class of fund excludes any form of commission payment and means companies can continue to distribute their funds through platforms and the intermediaries that use them under this regime.
Since these rules were introduced, competition has pushed down the overall cost of investing in new 'clean' funds which is great news for investors. The trouble is, the rules don't always extend to investments made or held directly with the fund management companies, meaning many direct investors continue to pay over the odds for their ISAs and funds.
If you do proceed, your funds will be re-registered to Fidelity FundsNetwork. A re-registered fund means that you transfer the administration of the fund and therefore there is no sale involved. This means you remain invested during the transaction and there is no potential for loss as a result of being out of a rising market.
Significant benefits when re-registering to Fidelity:
- Lower charges.
- Access to a comprehensive range of over 5,000 investment options - including a wide selection of mutual funds, exchange-traded products, investment trusts and company shares.
- The facility to manage your funds online and switch between funds for free.
- A significant reduction in paperwork - one consolidated statement covers all your fund investments.
- Probate is far easier to manage by surviving family member(s) - just one company instead of a number of different providers. In addition, all of your platform ISA holdings can simply be moved to your surviving spouse (some direct investment companies do not offer this facility).
- A transparent charging structure - not always the case with direct holdings.
- Clients of Elson Associates DO NOT pay the standard investor fee (£45 p.a.) levied by Fidelity FundsNetwork.
- The supply of data to us is more reliable. Individual fund managers are outsourcing their administration to third party providers which can sometimes be problematic.
Here's how the offer will work
Once we are your appointed agent, we will send you a single initial payment equal to 0.25% of the total investment value re-registered to Fidelity FundsNetwork up to a maximum of £1,000 (see terms of cashback offer).
We'll also send you consolidated investment valuation and fund monitoring reports every six months at no extra cost and you continue to receive statements in the usual way but they will come from Fidelity FundsNetwork. Your funds will continue to be managed by the existing fund manager.
What you need to do
Please take a look at the flowchart below as a guide for what you need to do. If you hold investments with Aegon, please contact us. If not, please complete the an Elson transfer form by downloading it here, or requesting one to be sent to you here and return to us together with investment statements of the company or companies and/or platform(s) you hold investments with. We will then send out a cost comparison report showing your potential ongoing savings, a Fidelity FundsNetwork quote and a declaration for you to sign and return. If you decide to proceed, just send the declaration back and we will then take care of the rest.
Held direct with Jupiter
| Jupiter UK Dynamic Equity OCF (Ongoing Charges Figure) |
1.74% |
| Elson Renewal commission (included in OCF) |
0.50% |
| Overall annual cost |
1.74% |
| Overall annual cost |
£435 |
Held with Fidelity FundsNetwork
| Jupiter UK Dynamic Equity OCF (Ongoing Charges Figure) |
0.76% |
| Elson Annual service fee |
0.35% |
| Fidelity FundsNetwork Annual service fee |
0.25% |
| Overall annual cost |
1.36% |
| Overall annual cost |
£340 |
| + Cashback |
£62.50 |
We already offer these lower-cost funds to our clients through Fidelity FundsNetwork, the UK's largest independent platform with over £53 billion of assets under administration. What you may not have realised though is that it's easy for you to convert any old-style 'commission-included' funds you might still hold.
Please note that it is possible your new charges may be more expensive under Fidelity FundNetwork and therefore you may not wish to proceed. Please ensure you study our cost comparison report to see the difference in charges.
When your funds are re-registered to Fidelity, it is important to note that Fidelity may need to convert them to a different share class. During this short period, you will not be able to trade (switch/sell) in the funds. Please note you will probably have a different number of units in the fund after you move as the prices of bundled and clean share classes are normally different. Bid-offer spreads may still apply on dual-priced funds. This means that a lower price for sale than purchase is offered. To understand the size of the spread, you will need to refer to the bid and offer prices that are shown in the clean share class fund factsheet.
Please note that this offer does not apply to the following investments:
- Bank/Building Society Accounts
- Cash ISAs
- Life Policies
- Pensions
- Single Company Shares
- With Profits/Investment Bonds
If you have any questions regarding the above offer, please contact us here and as ever, we'll be happy to assist you.
We do not give advice. Our services are only suitable for investors who feel confident in making their own investment decisions.