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Alliance Trust Savings completes conversion to clean share classes

Alliance Trust Savings has completed its conversion to clean share classes, becoming the second platform to fully unbundle. 

All bundled share classes have been converted to clean equivalents where an equal or cheaper net annual management charge is available.

ATS gives clients an option to trade out of an investment free of any dealing charges where there is no clean share class or where the clean share class has a higher AMC.

There are close to 80 examples of share classes where clients will be offered the free trade as fund groups including Aberdeen, Axa, Fidelity, Henderson, M&G, Investec and SWIP have either declined to launch a clean share class equivalent or have made a clean share class available at an increased net AMC.    

Patrick Mill

ATS managing director Patrick Mill says: “We have successfully completed this conversion within our own deadline of the current tax year, only converting the funds where our clients will be better, or at least as, well off in the clean share class.

“We have been pleased with the support from fund groups in helping us reach our deadline.”

Standard Life completed its bulk conversion exercise  in December. It estimates less than 1 per cent of platform assets cannot be converted due to a lack of a clean alternative with an equal or lower net AMC. 

The FCA has banned cash rebates and fund manager rebates on new business from April. For existing business, investments can remain in bundled share classes until April 2016.

Stiddard director Jason Levett says: “The main benefit is the client knows they do not need to worry about rebates from a tax perspective.

“But as cash rebates are removed it becomes more difficult to manage cash in the portfolio.”


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