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Charles Stanley slams Newton for D2C clean share refusal

Ben Yearsley: Newton should be ambivalent

Charles Stanley Direct has hit out at BNY Mellon boutique fund house Newton Investment Management for not making its clean share classes available to direct to consumer platforms.

Many investment companies have launched clean share classes and not differentiated between direct and advised business. However, Newton will only allow direct channels to use bundled share classes.

Charles Stanley Direct only offers clean share classes via its platform meaning clients currently cannot get access to any Newton funds.

Charles Stanley head of investment research Ben Yearsley says: “At a time when costs are falling, it is frustrating when one of the biggest investment companies refuses to let many thousands of investors access the lowest cost unit of their funds.

“Even more nonsensical as it is execution-only self directed investors that are not allowed access. Newton should be ambivalent about who buys clean funds, they should not discriminate between advisory or execution only investors.”

The Platforum head of direct and workplace Jeremy Fawcett says: “As fund managers work harder on the D2C channel it’s interesting to see Newton moving in the other direction.

“Given the widespread availability of clean funds on direct platforms already I don’t think it’s a huge problem for the D2C channel. However, I do not think that fund managers need to shun direct platforms to stay on the right side of advisers.”

A recent Money Marketing study showed a wide variety in the number of clean share classes direct platforms were offering with many offering none at all.

BNY Mellon head of UK retail Scott Goodsir says: ““BNY Mellon remains fully committed to reviewing the availability of its clean share classes on D2C platforms once the final FSA consultation paper on platforms, due at the end of April or early May this year, has been delivered. This will allow us to make a more informed and comprehensive decision that best serves all of our clients.”


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