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Ascentric looks at all-encompassing annual charge

Ascentric is considering introducing an annual platform charge inclusive of all trading costs to sit alongside its existing pay per trade option.

The wrap provider, which currently charges a 0.25 per cent annual fee as well as a charge per trade thereafter, is investigating alternative charging options.

Ascentric says it suggested a 0.35 per cent annual charge that included certain trades but not others but advisers rejected this idea, saying it was not transparent enough.

Ascentric is looking at an alternative, higher charge that would include all trades.

Head of marketing Dominic Ventham says: “The idea for this stemmed from a number of Ascentric advisers who were interested in an all-inclusive model.”

Following advisers’ rejection of Ascentric’s initial suggested pricing model, Ventham says “the alternatives would be to look at a slightly higher charge than 0.25 per cent, where we can include all our dealing costs”.

But he says: “It is very much at a conceptual stage.”

Threesixty partner Phil Young says: “An all-encompassing fee makes it a little easier for everyone to understand what they will pay if they want to actively manage a client’s portfolio. Transactional charging is sometimes more trouble than it is worth. It will go down well.”

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