Funds Market

These are the most commonly asked questions about Barclays Stockbrokers Funds Market.

FAQs

Fund Dealing Packages

 

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What are funds?

Funds are a form of collective investment for the indirect ownership of shares or other securities. Investors' contributions are pooled and invested on their behalf by professional fund managers. Examples of collective investment schemes are Unit Trusts, OEICs and Investment Trusts.

 

 

Why should I consider investing in funds?

Benefits of investing in funds include:

  • Experienced and professional managers overseeing each fund portfolio to achieve the fund's objectives.
  • Diversification, to spread and therefore, lower the risk of investing compared to individual shares.
  • Liquidity, allowing investors to redeem their investment at short notice at the current market price.
  • Economies of scale, producing lower trading costs from fund managers trading in large quantities.
  • Convenience, funds are easier to deal and administer and provide consolidated statement reporting.
  • Choice, there are a broad range of funds available so, whatever your investment objective, you should be able to find one to meet your particular needs.

 

 

What is Barclays Stockbrokers Funds Market?

Barclays Stockbrokers Funds Market offers you access to a selection of the UK's most popular and innovative funds from leading Fund Managers. We have negotiated special rates with the fund managers to offer you value for money. All Funds Market funds have a maximum initial charge of 1.5%.

 

Why should I choose to invest in funds through Barclays Stockbrokers?

As a client, you get free, instant access to a range of comprehensive research and information services through our website. These are not available to non-clients. Furthermore, if you invest in Barclays Stockbrokers Funds Market you will not pay any additional account charges.

UK Government securities (Gilts), bonds, other unit trusts, OEICs and Warrants can only be dealt through our telephone service.

 

What type of funds can I buy through Barclays Stockbrokers?

Generally speaking you can buy any UK authorised unit trust or OEIC.

 

Can I buy funds through any Barclays Stockbrokers account?

Yes, you can buy and hold funds through any account. However, for certain accounts e.g.ISAs, there may be Inland Revenue restrictions on which funds you can purchase. If purchasing funds online, you will only be able to purchase Barclays Stockbrokers Funds Market funds

 

What is the difference between Unit Trusts/OEICs and Investment Trusts?

The price of units in unit trusts or shares in OEICs will be determined by the value of underlying assets. The price of shares in an investment trust will also be affected by market conditions and may not accurately reflect the value of underlying assets.

 

What is the difference between Unit Trusts and OEICs?

The major differences are that OEICs quote a single price rather than a bid and offer price and they are governed by law rather than trust law. Most new funds launched today are established under the OEIC structure and it is widely predicted that, over time, most unit trusts will convert to OEICs

 

Can I invest any fund into my ISA?

In order to be held within an ISA funds have to meet a number of specific criteria specified by the Inland Revenue.

 

How much can I invest in a fund?

The minimum amount in order to invest through the Funds Market is £500.
How do I choose the fund which is right for me?
This will depend on your personal circumstances and investment objectives. There are a number of factors to consider including things such as charges, the risk of a particular fund, the fund's investment objectives, past performance and how long you are looking to invest for.

 

Do unit trusts/OEICs pay out income?

Yes they do. This income can either be paid out to the investor (if they hold distribution or income units) or reinvested in the fund to increase its value (if they hold accumulation units).

 

Will Barclays Stockbrokers claim the tax credits on distributions on my behalf?

Distributions on all UK-based funds (both income and accumulation units) are liable to UK Income Tax. If your funds are held in an ISA any income tax deducted by the Fund Manager will be reclaimed from the Inland Revenue by us.

 

How can I monitor the performance of my fund investments?

You can access and check your account online, anytime, anywhere. We will also send you regular statements and valuations.

 

Can I transfer my existing fund holdings into my Barclays Stockbrokers account?

Generally speaking it should be possible to do this for your MarketMaster Club account, although this might depend on the type of fund holding. Please contact us for more information.

 

What charges are involved in investing in funds?

The initial charge for Barclays Stockbrokers Funds Market is 0 or 1.5%. For non-Funds Market funds charges are levied and vary by fund manager.

 

Can I set a price limit on the sale or purchase of funds?

No. Orders can only be placed 'At Best' .

 

Can I choose to buy a fixed number of units or shares as well as an amount of cash to invest?

For ISAs and SIPP accounts, orders can only be placed to invest a specified sterling value, to include all charges. This is due to the price not being confirmed at the time of placing your order, and will ensure your account does not go overdrawn and result in an Inland Revenue Breach. For Market Master accounts, orders can be placed to invest either a specified sterling value (to include all charges), or for a specified number of units.

 

What settlement are funds dealt for?

There is a standard settlement period of 4 business days. Settlement is determined by the Fund Manager, and may be different for individual funds.

 

What do unit trusts/OEICs invest in?

This will depend on the fund's specific investment objectives but could include equities (UK & overseas), Company and government bonds (UK & overseas), property, derivatives and cash.

 

How can I get a list of the underlying securities that a unit trust/OEIC invests in?

Fund Managers produce regular reports to investors, which include information such as fund holdings. Copies are available on request to unit holders through the Reports & Accounts service.

 

Are some funds riskier than others?

Yes, this will depend upon the underlying securities held within the fund.

 

Can I hold any other types of securities in my Barclays Stockbrokers account as well as funds?

Yes, you can also hold individual UK equities, individual bonds & gilts, and cash pending investment.

 

How can I find out how well a unit trust/OEIC has performed in the past?

Within the funds information available in our Research Centre you will find comprehensive fund performance data.

 

What is a Funds Dealing Package?

Our Funds Dealing Packages take the hard work out of funds trading by grouping together 4 pre-selected funds from our Funds Market with similar investment objectives. Selected by the Investment Director of Stockbrokers from those covered by our specialist analysts they aim to provide a complementary mix of funds with expectation of delivering superior returns

 

Is there a minimum investment amount for a Funds Dealing Package?

Yes. The minimum investment amount for any of our Funds Dealing Packages is £2,000. Your investment amount is split equally between the funds in the package. For example, 4 funds with a minimum investment amount of £500 each give you the minimum investment amount of £2,000.

 

What commission is charged on a Funds Dealing Package?

The commission charges are just the same as they would be if you were buying each of the funds individually. So when investing in a dealing package, you'll pay the discounted initial charge, specially arranged for Funds Market Funds.

 

Can I buy a Funds Dealing Package within my ISA?

Yes. You can buy a Funds Dealing Package within an ISA as long as you have enough cash in your ISA to cover the cost.

 

Can I sell my Funds Dealing Package?

No. If you choose at any point to sell any of the funds in your holding these will be treated as individual sales. You cannot sell the package as a whole. However, because the funds are all selected from our Funds Market range, we won't charge you any commission when you sell.

 

Is there a time limit for holding the package?

No. If you invest in a Funds Dealing Package it's up to you how long you keep your investment in each of the four funds.

 

Will the funds within the package ever change?

The dealing packages will be reviewed every 6 months by the Director of Barclays Investment Services. He will review them to make sure that the funds in each package still have similar investment objectives and that their performance is acceptable.
On the Funds Dealing Package details page we will clearly state the date the package was last reviewed. We will not contact you if you have invested in a dealing package and the constituent funds change. Once you invest in a Funds Dealing Package, ongoing management of your investment is your responsibility.

 

 

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