Charges and Remuneration

When we invest in a fund for you, Barclays Stockbrokers will receive remuneration from the Fund Manager based on your initial investment. We will also receive further remuneration each year thereafter for as long as you continue to hold the fund investment with us (known as trail commission).

Worked Example:

Fund A has a discounted Initial Charge of 1.5% and a standard Annual Management Charge (AMC) of 1.8%.  The Fund Manager gives Barclays Stockbrokers 1.25% of the Initial Charge and keeps the remaining 0.25%.  The Fund manager then pays Barclays Stockbrokers a trail commission rate of 0.6% for Fund A.

If you invested £10,000 in Fund A.

 

1. Initial Charge

The 1.5% Initial Charge will be £150, and this is split between the broker and the Fund Manager in the following way:

Barclays Stockbrokers receives  1.25% (£125)
Fund Manager receives               0.25% (£25)

 

2. Trail Commission
The AMC charged would be 1.8% of the value of your investment held at the time the AMC is levied.  In this example, let's assume that you continue to hold your £10,000 investment in Fund A.  The AMC charged by the fund manager would be 1.8% of the £10,000 invested, which would total £180.

From this AMC, the Fund Manager would pay Barclays trail commission at a rate of 0.6%, which would total £60 (0.6% of the £10,000 = £60) leaving the fund manager with the balance of AMC of £120 (£180 - £60 = £120).

Please note that the AMC is a charge levied on the fund and not on individual investors.