Schroders considers clean fee share class

2 April 2010 8:00 am | By Chris Salih

A clean fee share class means the fund management fee is already deducted.

Managing director of UK intermediary business Robin Stoakley says: “It would be easier to offer a share class like this where we have already had our remuneration taken out. The platform then deals with the adviser and the customer, provided it makes it as transparent as possible while adhering to the rules of adviser-charging. The principle of unbundling is correct so it makes sense for platforms to levy a specific charge for those services.”

Stoakley says he would be surprised if most fund firms did not take a similar approach. He says: “We may end up with different share classes for different platforms, given that we may do 20 per cent of our platform business with one provider and only 1 per cent with another provider.”

He adds the move will not be cheap. “If we had, say, 30 funds we wanted to put on with an income and accumulator share class, that would mean setting up effectively 60 new share classes and the cost to set up and run would not be insignificant.”

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