Standard Life revealed exactly how it would charge new and existing Elevate users this morning. Having completed the platform purchase off Axa in November, Standard Life said existing users would pay exactly the same, but costs for new customers would be changed.
Here’s what the new prices look like:
New customers will face an average cost increase of 0.04 per cent. Consultancy Platforum shows us how these price increases break down by portfolio size:
New customers at the lower value end may be paying less, but for those in the £1m to £1.5m portfolio range will be paying 0.05 per cent more.
This is reflected in how Elevate will perform against its competitors under Standard Life’s ownership.
For a £100,000 portfolio, assuming 70 per cent Sipp and 30 per cent Isa holdings with 20 transactions a year, Elevate moves from fifth cheapest effective rate in the market to eighth.
Arguably this isn’t a huge shift as it is only overtaken by Aviva and Nucleus. For a £1m portfolio however, assuming 80 per cent Sipp and 20 per cent Isa holding with 80 transactions a year, it moves from tenth to eighteenth cheapest, and will be bested on price by, among others, 7IM, Zurich and FundsNetwork.
Access to more discounted fund deals of up to 0.1 per cent on a number of “superclean” funds, which is increasing from 350 to 440 along with the price changes, will undoubtedly make a difference, but the jury is still out on this one.