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                     Discount Broker for investments, insurance & mortgages		  

More information about Fund Supermarkets

What are fund supermarkets?

Fund supermarkets enable you to invest in funds from different fund managers in one place. You can still use Clubfinance as your discount broker to benefit from Clubfinance’s commission rebates.

Fund supermarkets do not themselves manage your portfolio or any of the funds you have selected. The fund management company for each fund you have chosen handles the day-to-day management of your investments. The supermarket merely provides you with a platform to use to enable you to benefit from a spread of investments in one place.

What can I buy?

At present, you can buy Unit Trusts, OEICs (Open Ended Investment Companies), and in some cases SICAVs (Luxembourg-based funds). The vast majority of funds can also be purchased in an ISA.

What about commission?

Clubfinance rebates 100% of any initial commission on all investments, switches, transfers and re-registrations. These rebates have the effect of reducing the initial charge.

In addition, we rebate 75% of any renewal commissions once a year by cheque (see our Terms of Business).

Why not just buy through Clubfinance not using a supermarket?

  • In some cases the supermarket will have negotiated discounts on the initial charges. In the case of Selestia Investment SolutionsTM for example, over 800 funds are available with a 0% initial charge.

  • Reduced administration and paperwork – a single administrator for all your funds.

  • You can mix and match funds from different fund managers within the same account and within a single ISA.

  • You can switch between funds from different fund managers generally at little or no cost. Depending on the fund and the fund supermarket, the switch charge is generally 0% or 0.25% (although there may also be a difference between the price at which units/shares are bought and sold (dual-priced funds) or possibly a dilution levy (single-priced funds)).

What are the disadvantages?

  • It may not be possible to move your funds outside the supermarket or to a different supermarket without selling your investments or incurring a charge.

  • The timing of income distributions may be different for the same funds held within a supermarket.

  • It is possible that for some transactions, more suitable terms or lower charges might be obtained direct from the fund manager.

  • You will not receive the individual fund managers’ investor newsletters or fund reports and financial statements (although these are generally available online).

  • There may be an annual fee for having an account with the fund supermarket.

What types of transaction can I perform in a fund supermarket?

New investment

This is simply investing new money inside or outside an ISA.

Re-registration

Re-registration means moving funds you hold with other companies without having to sell and re-buy them.

Re-registration can be used for funds held inside or outside an ISA (including former PEPs), but not all funds can be re-registered. The fund supermarkets provide lists of the funds that can be re-registered.

Fund supermarkets do not charge for this service, but a small number of funds may levy an exit charge.

ISA Transfer

Some funds cannot be re-registered. However, you can still carry out a conventional ISA transfer to a fund supermarket. This includes ISAs that were formerly PEPs.

This will involve selling your existing funds, but you will retain the ISA status of your investment. In addition, depending on the fund and/or supermarket, there may be additional discounts on initial charges when buying some funds within the supermarket as part of a transfer.

Note that dual-priced funds will have a higher price for buying units than for selling units and single-priced funds may have a dilution levy applied under some circumstances.

For ISA transfers, please take note of the additional risk warnings and general points available here.

Switch

If you want to change the funds you have invested in and / or make use of your ISA allowance you can switch between funds from different fund managers generally at little or no cost. Depending on the fund and the fund supermarket, the switch charge is generally 0% or 0.25% (although there may also be a difference between the price at which units/shares are bought and sold (dual-priced funds) or possibly a dilution levy (single-priced funds)).

I already have investments through a fund supermarket

If you do not need advice, for most fund supermarkets, you can Change your Agent to Clubfinance to benefit from a rebate of 75% of any ongoing (renewal) commission we receive.

Which supermarkets are available?

If you are interested in another fund supermarket please contact us.

Important Information

Clubfinance Ltd is authorised and regulated by the Financial Services Authority. Clubfinance offers an execution-only discount broker service; Clubfinance does not give advice or recommendations. If you have any doubt about the suitability of a particular product or service, or you require advice, you should seek a personal recommendation from an appropriate firm that does give advice. Clubfinance does not produce the products it arranges, or manage the underlying investments. Payments must not be made to Clubfinance, but to the relevant product provider. Contact details for Clubfinance can be found under ‘contact us’. Users of this website should be aware of the following:

  • Past performance is not a reliable indicator of future results.

  • The value of investments and the income from them can fall as well as rise as a result of market and currency fluctuations. For many types of investment, you may be placing your capital at risk, meaning that you may not get back the amount originally invested and you may risk losing your entire investment.

  • Some investments and policies may only be suitable as medium or long-term products.

  • Tax treatments depend on your individual circumstances and may be subject to change in future.

  • This website contains financial promotions relating to services offered by and products available through Clubfinance.

  • In the event of any conflict between product literature and information provided by Clubfinance, the product literature shall prevail.

The information on this website is intended solely for the use of those people who are United Kingdom residents for tax and investment purposes and is governed by our terms and conditions of website usage, please click here for details. It is not for distribution in any other jurisdiction, including the United States of America. Anyone who is not a UK resident should not continue with this site unless wishing to read about personal finances available to UK residents for informational purposes only.

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