Mountains

Retail Distribution Review

Rules following the Retail Distribution Review (“RDR”) came into force on 1 January 2013.  These rules effectively ban all commission paid from retail products to financial intermediaries.

What does this mean?

From 1st January 2013 investors with an adviser are no longer able to invest in retail products that pay a built in commission/fee to an adviser.  Therefore, Margetts have launched new share classes for all funds that comply with the RDR rules.  These share classes will have an “R” to denote that they comply with the rules.

The Margetts Annual Management Charge (“AMC”) has been reduced on R share classes to reflect the fact that commission/fees are not being paid from the product.

Any investments in the legacy share classes will remain unaffected.  However, no new money can be invested in these share classes where there is a financial intermediary, unless they are part of an existing regular investment.

The legacy share classes are still available to retail investors without an adviser, however this will be for execution only investments and therefore no commission will be paid to a financial intermediary.

The new share classes are part of the existing funds and receive the same management.  The only difference between new share classes and legacy share classes is the cost.

Is there new literature and application forms?

Yes, Margetts have moved to using Key Investor Information (“KII”) Documents, Non-UCITS Retail Scheme Key Investor Information (“NURS-KII”) Documents and Supplementary Information Documents (“SID”).  These documents replace the Simplified Prospectus and Application Form.

The website will provide application forms for the clean share classes only.  For literature relating to legacy share classes please contact the office on 0121 236 2380 or
admin@margetts.com.

What will happen if my investor client wishes to make a change to their portfolio?

Any advised changes to a portfolio held in legacy share classes must be reinvested into R share classes.  For example, if a client holds four of the Margetts funds in legacy share classes and wants to sell one of the funds and reinvest into another, then they will have to purchase R shares with the proceeds from their sale.

If a regular investment amount or the split of the investment is amended then the whole regular investment in the future will be invested in R share classes.

Can Margetts pay a fee to me for providing advice?

Margetts have introduced an adviser charging facility to help investors pay their adviser for the services they receive.  The facility requires the investor to complete an Adviser Charge Facilitation Consent Form, which is available on our Literature and Prices page.  The form can instruct Margetts to pay an initial fee from the investment amount before it is invested and allows an ongoing fee to be paid to an adviser by encashing units from the portfolio.

The benefit of this system is that clients do not have to make separate payments and the amounts can be calculated automatically by Margetts and paid on a regular basis.  Investors are able to set a percentage fee or fixed fee and they are able to set the frequency of payments.  In addition, they are able to cancel the fee at any time.

Statements will be sent to investors every six months including a breakdown of the payments.

Exceptions to the above

Corporate platforms, non-advised investors and international investors/agents can still purchase the legacy share classes post 1st January 2013.  In order to verify that the investor is eligible, additional agreements have been imposed.

If you have any queries please do not hesitate to contact us.

The following table shows the list of Margetts funds, the legacy share classes and RDR share classes.

Fund Name
Legacy Share Class
RDR Share Class
Risk Rated Fund Range  
Margetts Providence Strategy Margetts Providence Strategy Fund Acc (GB0007938490) Margetts Providence Strategy Fund R Acc (GB00B4VR6328)
  Margetts Providence Strategy Fund Inc (GB0007938276) Margetts Providence Strategy Fund R Inc (GB00B7TRY424)
     
Margetts Select Strategy Margetts Select Strategy Fund Acc (GB0006584097) Margetts Select Strategy Fund R Acc (GB00B8K0B575)
     
Margetts International Strategy Margetts International Strategy Acc (GB0007021685) Margetts International Strategy R Acc (GB00B8FN1Z15)
     
Margetts Venture Strategy Margetts Venture Strategy Acc (GB0007938383) Margetts Venture Strategy R Acc (GB00B6VBDR16)



Opes Fund Range    
Margetts Opes Income Margetts Opes Income Acc (GB0032469867) Margetts Opes Income R Acc (GB00B8K7MQ61)
  Margetts Opes Income Inc
(GB0032469750)
Margetts Opes Income R Inc (GB00B83VP222)
     
Margetts Opes Growth Margetts Opes Growth Acc (GB0032469974) Margetts Opes Growth R Acc (GB00B4XW1411)



Greystone Fund Range  
Margetts Greystone Conservative Margetts Greystone Conservative Acc (GB00B1WQPT66) Margetts Greystone Conservative R Acc (GB00B8FBGX88)
     
Margetts Greystone Cautious Margetts Greystone Cautious Acc (GB00B0MTNQ12) Margetts Greystone Cautious R Acc (GB00B84ZNJ63)
  Margetts Greystone Cautious Inc (GB00B0MTNW71) Margetts Greystone Cautious R Inc (GB00B8JTXR16)
     
Margetts Greystone Balanced Margetts Greystone Balanced Acc (GB00B0MTNP05) Margetts Greystone Balanced R Acc (GB00B82VQ206)
  Margetts Greystone Balanced Inc (GB00B0MTNT43) Margetts Greystone Balanced R Inc (GB00B8HLJX73)
     
Margetts Greystone Global Growth Margetts Greystone Global Growth Acc (GB00B0MTNV64) Margetts Greystone Global Growth R Acc (GB00B79FLP68)



Frontier Range    
MGTS Frontier Cautious MGTS Frontier Cautious Acc
(GB00B2487577)
MGTS Frontier Cautious R Acc (GB00B2487247)
  MGTS Frontier Cautious Inc
(GB00B2487460)
MGTS Frontier Cautious R Inc 
(GB00B2487353)
     
MGTS Frontier Adventurous MGTS Frontier Adventurous Acc (GB00B4NCG027) MGTS Frontier Adventurous R Acc (GB00B4V5P286)



Future Money Range    
MGTS Future Money Real Value MGTS Future Money Real Value Acc (GB00B3D1MN74) MGTS Future Money Real Value R Acc (GB00B89JN484)
     
MGTS Future Money Real Growth MGTS Future Money Real Growth Acc (GB00B3D1MP98) MGTS Future Money Real Growth R Acc (GB00B7WPBV97)
     
MGTS Future Money Dynamic Growth MGTS Future Money Dynamic Growth Acc (GB00B3D1MQ06) MGTS Future Money Dynamic Growth R Acc (GB00B8FFPK05)
     
MGTS Future Money Income MGTS Future Money Income Acc (GB00B3D1MS20) MGTS Future Money Income R Acc (GB00B8KBJC34)
  MGTS Future Money Income Inc (GB00B3D1MR13) MGTS Future Money Income R Inc (GB00B5MFQ093)



AFH Range    
MGTS AFH Strategic Core MGTS AFH Strategic Core Acc (GB00B5MGGT18) MGTS AFH Strategic Core R Acc (GB00B8KTVT88)
  MGTS AFH Strategic Core Inc (GB00B5M92V43) MGTS AFH Strategic Core R Inc (GB00B8K9HG76)



Ardevora Range    
MGTS Ardevora UK Income   MGTS Ardevora UK Income Fund A Inst Acc (GB00B4RL9738)
    MGTS Ardevora UK Income Fund A Inst Inc (GB00B78H6035)
    MGTS Ardevora UK Income Fund B Retail Acc (GB00B4N95844)
    MGTS Ardevora UK Income Fund B Retail Inc (GB00B4WGRP75)