Question to Rabo

Hi,

I have emailed your help line with this query but after being fobbed off twice I have not received another answer.

My question is:

I have read in many places that according to you, you only charge .75% entry charges into the funds and that these are below the 5% allowed as per the prospectus. This is fine, my issue arises with redemption charges. These are 0 in the fact sheets which I have looked at yet you charge.75% on this too.

Are you allowed to breach the prospectus because you are a distributor?

It seems misleading to boast about being below the maximum allowed by a prospectus if you are not bound by it.

If you are not bound by it are the investors still covered by the prospectus or what other things in the prospectus arent applicable.

ShaneMc said:

Hi,

I have emailed your help line with this query but after being fobbed off twice I have not received another answer.

My question is:

I have read in many places that according to you, you only charge .75% entry charges into the funds and that these are below the 5% allowed as per the prospectus. This is fine, my issue arises with redemption charges. These are 0 in the fact sheets which I have looked at yet you charge.75% on this too.

Are you allowed to breach the prospectus because you are a distributor?

It seems misleading to boast about being below the maximum allowed by a prospectus if you are not bound by it.

If you are not bound by it are the investors still covered by the prospectus or what other things in the prospectus arent applicable.

Click to expand...

The fact sheets tend to be generic as they created by the fund managers and can be issued to a number of distributors. Within the terms of business we are allowed to charge up to 5.0% on entry and we are also allowed to charge exit fees. For example, you will see on many of the fact sheets that the minimum investment amount is more than the €100 that we have in place.

As an example please see the links to the fact sheet and simplified prospectus for the Henderson Pan European Equity Fund
[broken link removed]
Fees on Page 6 - [broken link removed]

We are quite clear on the entry and exit fees of our funds - [broken link removed]

So in answer to your query we are not in breach of our trading agreements with the fund providers. We have a legal distribution agreement with each fund provider that includes amongst other things, fees and charges.

We will shortly be implementing a new system of generating fact sheets in conjunction with Morningstar. These fact sheets will be dynamically customised for RaboDirect providing specific minimum investment amounts and fees.

Apologies if you feel that your query was not adequately dealt with by the Customer Contact Centre. We will address the issue with the team.

RaboDirect

Rabo, have to say you provide a good service here on AAM. It must be your full time job.

Interesting to know whether other institutions have full time AAM watchers acting anonymously. I don't mean in a personal capacity, plenty of them I'm sure, though it is NetNannied in our place. I am refering to full time tasked by their employer to watch AAM.