Bestinvest is the latest direct platform to announce its new pricing structure, with charges starting at 40 basis points and tiering down to 20 bps.
Investments in GIAs and Isas will start at 40 bps and tier down to 20bps after the first £250,000, while Sipp holdings will be priced at 30bps and tier down to 20bps after the first £250,000. There will be no fee for assets over £1m.
Fees will operate on the same structure, regardless of whether the underlying investment is held in a fund, investment trust, exchange traded funds or shares.
There are no initial or switching charges, and there is a £7.50 trading fee for listed securities. The charges will take effect from 1 March.
Bestinvest says the average annual management charge on premier selection funds is 0.66 per cent.
Bestinvest was the UK’s sixth biggest direct platform with assets of £4.9bn as at September.
Bestinvest chief executive Peter Hall says: “The online investment service is much more than a ‘fund-supermarket’, it offers a wide range of investments, guidance and analysis tools. With banks withdrawing from the advice market, we believe this service is well placed to help bridge the gap for those investors who are prepared to make their own decisions but need a helping hand.”
The Platforum managing director Holly Mackay says: “Presumably not blind to sophisticated investors’ outrage with the Hargreaves decision to levy separate and additional fees on investment trusts, the Bestinvest structure is very clear that no additional costs are levied depending on what sort of investment you hold.
“A simple 30bps fee on Sipp assets, including listed securities, and £7.50 a trade is very competitive. With no additional fixed fee for Sipp assets, this is a very clear statement of intent by Bestinvest. They want to be the go-to platform of choice for middle-England’s savers with a Sipp which has a blend of funds, shares and investment trusts.”
Source: The Platforum