Why are some fund classifications different on different platforms?

Hi,

I’m considering transferring my Stocks & Shares ISA to a different provider to reduce my charges. All of my current investments are listed with the new provider, however the classifications on some of the funds are not the same.

Is there a simple method of understanding the implications of the change in classification?

Kind regards,

Gary

Hi Gary,

Unfortunately, the simple answer is no - there isn't a one-size-fits-all simple method.

By "classification", we presume you're referring to ISINs (International Securities Identification Numbers) and share classes. Sometimes different providers hold different share classes of funds because they've managed to negotiate a discount on the OCF (ongoing charges figure). Another reason could be because one fund pays out income - sometimes shown as "inc" - whilst the other reinvests income back into the fund, which is known as "accumulation" or "acc".

Perhaps you could check the cost of the funds on the new provider and see if they are materially different to what you're paying now, as well as look at the asset allocation and top 10 holdings. If they are all fairly similar, then that could provide you with reassurance that you aren't changing your investments significantly by switching to the new provider!

Hope this is helpful!