Convert my funds to 'unbundled' units
Take advantage of low annual fund charges
In 2014 we started offering investors a new type of fund with lower annual management charges and lower or no loyalty bonuses. We call these 'unbundled' funds. You can convert your existing funds to unbundled units using our simple online conversion form.
You can convert a single fund, all the funds in an account or all the funds in your portfolio.
Converting will have no effect on the value of your holding but the price of the new units and the number of units you hold will be different. The conversion of units will not create a tax liability and there is no charge for this service.
Please ensure you have read the Fund conversion policy. In particular, while you will be able to buy and sell units while your conversion is pending, you will be unable to trade your 'inclusive' fund for a limited period of time while it is being converted.
What happens after you have submitted your conversion instruction?
Once you have provided your instruction your conversion will move through the following stages:
Pending - your conversion will show as pending until the order has been submitted to your fund manager. Pending orders will be submitted on a quarterly basis which we expect to be in March, June, September and December. Whilst your order is shown as pending you may continue to trade in the fund, or cancel your order if you wish. We will convert all units held in the fund at the conversion date.
Submitted for conversion, awaiting confirmation - your order has been submitted to your fund manager. You are no longer able to trade in the fund, though you can buy more of the unbundled units if you wish. You can no longer cancel the conversion.
Complete - your conversion is complete and a confirmation notification is available to view in portfolio history.
Switching to unbundled funds
As well as converting, you can also switch from one type of fund to another via our normal dealing service. When you switch through the Vantage Service you place a single instruction and the sale will normally be placed by the end of the working day following receipt of your instruction. The purchase will normally be placed automatically by the end of the working day following that. The advantage of switching is that you don't have to wait until the next quarterly conversion date; you can switch immediately. You also avoid the potential period outlined above where you will not be able to sell your units. Note, a bid/offer spread or dilution levy may apply, which could affect the value of your investment. Furthermore, as you will hold cash while the switch takes place, you will not benefit from any growth in the market until your money is reinvested. If your funds are held outside an ISA or SIPP, there is also the risk that switching could create a capital gains tax liability. These potential pitfalls are avoided by converting.